Rackspace Technology reported a ransomware incident affecting its Hosted Exchange environment. The company’s Hosted Exchange customers have been impacted by service outages.
Rackspace said it has taken proactive measures to isolate the Hosted Exchange environment to contain the incident and at this time believes the attack has spread to other aspects of its business. Rackspace Technology’s other products and services are fully operational, and the company has not experienced an impact to its Email product line and platform.
The company has engaged a leading cyber defense firm to investigate.
Rackspace Technology is in ongoing communication with Hosted Exchange customers to help them migrate to a new environment as quickly as possible. Rackspace Technology has surged support staff and will be taking additional steps to help guide customers through this process in order to limit the impact to their own operations. Although Rackspace Technology is in the early stages of assessing this incident, the incident has caused and may continue to cause an interruption in its Hosted Exchange business and may result in a loss of revenue for the Hosted Exchange business, which generates approximately $30 million of annual revenue in the Apps & Cross Platform segment. In addition, Rackspace Technology may have incremental costs associated with its response to the incident.