Who is Rackspace?

Rackspace is a multinational technology company that provides cloud computing, managed hosting, and other IT services.
Rackspace offers a range of cloud computing services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). These services allow customers to rent computing resources, such as virtual machines, storage, and databases, over the internet. Rackspace also provides managed hosting services, where the company manages and maintains customers’ servers and infrastructure, freeing up customers to focus on their core business.

Rackspace confirms data breach

On December 6th, a security breach occurred at Rackspace. The company admitted that the hackers gained access to the personal data of 27 customers. According to Rackspace, about 30,000 customers were using its hosted Exchange service at the time of the ransomware attack. Rackspace has decided to discontinue its hosted Exchange service in response to the breach.

Over a month later, Rackspace let the customers affected by the data breach know that “more than half of impacted customers have some or all of their data available to them for download,” but less than 5% of them have downloaded those mailboxes.

Fallout from compromised security

This highlights the importance of having robust security measures to protect customer data and the potential consequences of a security breach, such as discontinuing services and damaging customer trust. This may have been considered a small breach when considering the scale of the breach however now Rackspace must deal with its damaged reputation and the fallout from disgruntled customers.