What This Guide Covers
- Why Rackspace email was discontinued
- How to prepare for email migration
- Step-by-step migration walkthrough
- DNS cutover without downtime
- Choosing the right Microsoft 365 plan
- Post-migration configuration checklist
- Common Rackspace migration pitfalls
- Estimated costs and timelines
Why Rackspace Discontinued Email Hosting
Rackspace Technology made the strategic decision to exit the standalone email hosting market and shift its focus toward managed cloud, multi-cloud, and higher-margin managed services. This means the Rackspace Email product (formerly called Mailtrust) and Rackspace Hosted Exchange are being wound down, leaving tens of thousands of businesses scrambling to find a new email provider.
Service End
Rackspace notified customers of email service discontinuation with limited notice windows for many accounts.
Affected Users
Hundreds of thousands of mailboxes across SMBs, agencies, and managed service providers impacted.
Best Destination
Microsoft 365 is the #1 migration target — enterprise-grade, familiar Outlook UI, and strong deliverability.
The good news: migrating to Microsoft 365 is well-documented, and with the right preparation you can complete the move with zero email downtime and zero data loss. You'll also end up with a significantly more powerful platform — Exchange Online, Teams, SharePoint, OneDrive, and Copilot AI, all included.
Pre-Migration Preparation Checklist
Rushing into the migration is the single biggest mistake businesses make. Spend one to two hours on preparation and the actual migration will be smooth and predictable.
Inventory All Mailboxes & Distribution Lists
Export a full list of all Rackspace mailboxes, aliases, shared mailboxes, and distribution groups. You'll need this list when creating accounts in Microsoft 365.
Check DNS Access
Confirm you have login access to your domain registrar (GoDaddy, Namecheap, Cloudflare, etc.). You'll need to update MX records, SPF, DKIM, and DMARC during cutover.
Record Current TTL Values
Log your current MX record TTL (Time To Live). If it's above 3600 seconds, lower it to 300 at least 24 hours before migration. This speeds up DNS propagation dramatically.
Document Email Client Configurations
Note which email clients each user is running (Outlook, Apple Mail, Thunderbird, mobile apps). After migration, clients will need to be reconfigured for Microsoft 365.
Identify Third-Party Integrations
Any application that sends email through Rackspace SMTP (CRMs, helpdesks, billing software) will need SMTP credentials updated to Microsoft 365 after migration.
Create Full Email Backup
Before touching anything, export or download a complete backup of all mailboxes from Rackspace. Even if you're using a migration tool, a local backup is your safety net.
Have questions about this topic?
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Step-by-Step: Rackspace to Microsoft 365 Migration
1Set Up Your Microsoft 365 Tenant
- Go to microsoft.com/microsoft-365 and purchase the right plan (see plan comparison below)
- Sign up with a new tenant domain (e.g., yourcompany.onmicrosoft.com)
- In the Microsoft 365 Admin Center, go to Settings → Domains and click Add domain
- Microsoft will provide a TXT verification record — add it to your DNS (do NOT update MX yet)
- Once verified, create user accounts matching every Rackspace mailbox address
2Migrate Emails Using IMAP or Microsoft Migration Tools
Microsoft 365 offers several migration paths from Rackspace. IMAP migration works well for straightforward mailbox moves. For larger organizations, the Microsoft Migration Wizard inside the Admin Center is the easiest route.
Microsoft Migration Wizard
- • Admin Center → Migration → Add migration batch
- • Select IMAP as the migration type
- • Enter Rackspace IMAP server:
secure.emailsrvr.com - • Port 993, SSL enabled
- • Upload CSV with user/password pairs
- • Start migration — runs in background
Third-Party Tools
- • BitTitan MigrationWiz — most popular, handles large volumes
- • SkyKick — good for MSPs managing multiple migrations
- • Transend Migrator — budget-friendly for small businesses
- • These tools handle delta syncs before final cutover
- • Recommended for 25+ mailboxes
Pro tip: Start the IMAP migration 2–4 days before your DNS cutover. This pre-populates Microsoft 365 mailboxes with historical email so users experience no data gap on day one.
3Migrate Contacts & Calendars
IMAP migration moves emails only — it does not migrate contacts or calendars. You'll need to handle these separately.
Contacts
- 1. In Rackspace Webmail, export contacts as .vcf or .csv
- 2. In Outlook / Outlook on the Web, go to People → Import contacts
- 3. Upload the exported file
Calendars
- 1. Export calendar as .ics from Rackspace Webmail
- 2. In Outlook or Outlook on the Web, go to Calendar → Import
- 3. Upload .ics file — all events will be imported
DNS Cutover: Switching Mail Flow to Microsoft 365
The DNS cutover is the moment new email starts flowing to Microsoft 365 instead of Rackspace. This is the most time-sensitive step — do it on a weekday evening when email volume is low, and make sure your Microsoft 365 mailboxes are pre-populated before you start.
DNS Records to Update at Cutover
Make all changes in sequence — don't skip any record
| Record Type | Purpose | Example Value | TTL |
|---|---|---|---|
| MX | Route inbound email to M365 | yourcompany-com.mail.protection.outlook.com | 300s |
| TXT (SPF) | Authorize M365 to send as your domain | v=spf1 include:spf.protection.outlook.com -all | 3600s |
| CNAME (DKIM) | Enable email signing for deliverability | selector1._domainkey → (from M365 admin) | 3600s |
| TXT (DMARC) | Email authentication policy | v=DMARC1; p=quarantine; rua=mailto:dmarc@yourco.com | 3600s |
| CNAME (Autodiscover) | Automatic Outlook client configuration | autodiscover.yourcompany.com → autodiscover.outlook.com | 3600s |
Important: Remove Rackspace MX Records First
Before adding the Microsoft 365 MX record, delete all existing Rackspace MX records (typically pointing to mx1.emailsrvr.com and mx2.emailsrvr.com). Having both old and new MX records active simultaneously will cause email to randomly route to the wrong server.
Post-Migration Configuration
Once email is flowing to Microsoft 365, spend 30–60 minutes completing these critical steps to finalize the migration and ensure a smooth experience for all users.
Reconfigure Email Clients
- Remove old Rackspace IMAP/POP3 accounts from Outlook
- Add new Microsoft 365 account via Exchange protocol
- Autodiscover handles settings automatically for most users
- Update mobile devices (iOS Mail, Outlook for iOS/Android)
Enable Security Features
- Turn on Multi-Factor Authentication (MFA) for all accounts
- Enable Microsoft Defender for Office 365 anti-phishing
- Configure Safe Links and Safe Attachments policies
- Review and enable Data Loss Prevention (DLP) if needed
Update SMTP Relay Apps
- Update all CRM, billing, and support tools with new SMTP
- SMTP host: smtp.office365.com, Port: 587, TLS: On
- Create a dedicated service account for SMTP authentication
- Test transactional email flow from each application
Recreate Distribution Groups
- Create Microsoft 365 Groups or Distribution Lists in Admin Center
- Recreate all Rackspace aliases as additional email addresses
- Set up Shared Mailboxes for previously shared Rackspace accounts
- Verify all group email routing is working correctly
Which Microsoft 365 Plan Should You Choose?
Rackspace Email was priced at around $2.99–$3.99 per user/month. Microsoft 365 costs more, but you get dramatically more — full Office apps, Teams, SharePoint, OneDrive, and increasingly powerful Copilot AI features.
| Plan | Price | Best For | Key Features |
|---|---|---|---|
| M365 Business Basic | $6/user/mo | Small teams, email + collaboration only | Exchange 50GB, Teams, SharePoint, OneDrive 1TB, Web Office apps |
| M365 Business StandardMost Popular | $12.50/user/mo | Most businesses — best value | Everything in Basic + Full Outlook, Word, Excel, PowerPoint desktop apps |
| M365 Business Premium | $22/user/mo | Security-conscious businesses | Standard + Intune, Defender, Azure AD Premium, Information Protection |
| M365 Apps for Business | $8.25/user/mo | Teams already have email elsewhere | Full Office desktop apps + OneDrive, no Exchange Online |
* Prices as of March 2026. Annual commitment pricing shown. Monthly billing is ~20% higher.
Migration Timeline by Business Size
Small Business
1–25 users
1–3 days
Direct IMAP cutover
- Day 1: Set up M365, verify domain, create users
- Day 2: Run IMAP migration, pre-populate mailboxes
- Day 3: DNS cutover, reconfigure clients, done
Mid-Size
25–200 users
3–7 days
Batched IMAP + MigrationWiz
- Days 1–2: Tenant setup, pilot group migration
- Days 3–5: Batch migrate users in waves
- Days 6–7: DNS cutover, client reconfiguration
Enterprise
200+ users
1–3 weeks
Phased migration with coexistence
- Week 1: Planning, pilot, department 1
- Week 2: Departments 2–4, parallel mail flow
- Week 3: Final cutover, decommission Rackspace
Frequently Asked Questions
Can I still access Rackspace email after switching to Microsoft 365?
Will my email address change during migration?
How do I migrate Rackspace email to Outlook after switching?
Does Microsoft 365 migration affect my website?
What happens to email sent to my address during the DNS migration?
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