Security News > 2022 > December > Being one of the 1% sucks if you're a Rackspace user

Being one of the 1% sucks if you're a Rackspace user
2022-12-22 00:35

As the Rackspace email fiasco approaches week three with the company's hosted Exchange customers' data in limbo, Rackspace execs still won't put an exact number on how many customers were affected by the ransomware-induced email outage, or when - if - they'll be able to recover their old messages and contacts.

When asked for an exact customer count, "It's 1 percent of our overall company revenue," Rackspace Chief Product Officer Josh Prewitt told The Register, confirming a figure from an earlier filing with the US Securities and Exchange.

Rackspace also told the SEC that this 1 percent, which brings in about $30 million in annual revenue, is "Primarily small and medium business" customers, who are likely bearing the financial brunt of losing access to their users.

When asked how the company can recover from the security snafu and gain back customer trust, Prewitt returned to the 1 percent.

On December 19, in an update posted on its Hosted Exchange Issues status page, the company said it was making progress in its data recovery efforts and would start "Transferring data to our Hosted Exchange email environment customers in the coming days."

"There's a chance that an Exchange PST file could be a corrupt file, there's a chance there would be something wrong with an individual customer's PST, so it would be premature for me to say absolutely every single customer, 100 percent" will recover their data, Prewitt said.


News URL

https://go.theregister.com/feed/www.theregister.com/2022/12/22/rackspace_outage_customers/