Rackspace Hosted Exchange Outage Due to Security Incident

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Rackspace hosted Exchange suffered a catastrophic outage beginning December 2, 2022 and is still ongoing as of 12:37 AM December 4th. Initially described as connectivity and login issues, the guidance was eventually updated to announce that they were dealing with a security incident.

Rackspace Hosted Exchange Issues

The Rackspace system went down in the early morning hours of December 2, 2022. Initially there was no word from Rackspace about what the problem was, much less an ETA of when it would be resolved.

Customers on Twitter reported that Rackspace was not responding to support emails.

This has been quite the day with #Rackspace. Every hosted exchange client has been down for 14 hours or so. Support isn’t reading/responding to tickets. Updates are unhelpful.

I am concerned now that they fell victim to something bad like the ProxyNotShell PoC hack. https://t.co/jchKsAO3Z7

— Joe Sinkwitz (@CygnusSEO) December 2, 2022

A Rackspace customer privately messaged me over social media on Friday to relate their experience:

“All hosted Exchange clients down over the past 16 hours.

Not sure how many companies that is, but it’s significant.

They’re serving a 554 long delay bounce so people emailing in aren’t aware of the bounce for several hours.”

The official Rackspace status page offered a running update of the outage but the initial posts had no information other than there was an outage and it was being investigated.

The first official update was on December 2nd at 2:49 AM:

“We are investigating an issue that is affecting our Hosted Exchange environments. More details will be posted as they become available.”

Thirteen minutes later Rackspace began calling it a “connectivity issue.”

“We are investigating reports of connectivity issues to our Exchange environments.

Users may experience an error upon accessing the Outlook Web App (Webmail) and syncing their email client(s).”

By 6:36 AM the Rackspace updates described the ongoing problem as…

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