After being plagued by a ransomware attack that resulted in email outages for thousands of its customers, Rackspace Technology is yet to issue a statement stating how many customers were affected by the ransomware-induced email outage, or when they will be able to recover their old messages and contacts.
When asked for an exact customer count, Rackspace Chief Product Officer Josh Prewitt told The Register, “It’s 1% of our overall company revenue,” confirming a figure from an earlier filing with the US Securities and Exchange Commission.
Rackspace also told the SEC that this 1%, which generates about $30 million in annual revenue, is made up of “primarily small and medium business” customers, who will likely bear the financial brunt of losing access to their users. When asked how the company will recover from the security blunder and regain customer trust, Prewitt reverted to the 1% figure.
Rackspace previously confirmed that thousands of customers’ email outages were caused by a ransomware attack on its Hosted Exchange business.
In an SEC filing, Rackspace stated that the ransomware attack would result in a loss of revenue in the Hosted Exchange business, which generates $30 million per year in the Apps & Cross Platform segment, as well as other incremental costs.
The sources for this piece include an article in TheRegister.