Rackspace announced that the recent Hosted Exchange outage was due to a ransomware attack. The service is still offline. An external party is investigating the impact.

Rackspace issued a statement to confirm the cause of the outage. According to Rackspace, the ransomware attack’s damage is limited to Hosted Exchange. Other products and services are said to be fully operational.

Additional security measures

The organization noted that additional security measures have been taken. By its own admission, Rackspace is closely monitoring environments for suspicious activity. The organization added that it has engaged an external party to assess the impact of the attack.

Rackspace says it continues to help affected customers migrate to a new Exchange environment. According to the organization, the schedules of employees have been cleared to focus on relieving affected customers.

Substantial financial damage

Rackspace expects the incident to result in a hefty loss. The company indicates damages of approximately €28.5 million ($30 million) in the annual revenue of its Apps & Cross Platform segment. The number does not include the costs of fixing the ongoing problem.

Tip: Hosted Rackspace Exchange hit by security incident