Rackspace prospects rage following ransomware assault, as class-action lawsuits filed | Tech Lance

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The story to this point…

On December 2, in style managed cloud computing firm Rackspace introduced that it was investigating a problem with its Hosted Change Server, which had precipitated an enormous outage with its prospects not in a position to entry their electronic mail.

Some prospects reported that they’d spent greater than eight hours ready on the telephone to talk to Rackspace customer support about the issue earlier than giving up.

It turned clear that small and medium-sized companies that relied on Rackspace might discover themselves offline for days because of the flaw, and the corporate steered that prospects migrate their electronic mail programs to Microsoft 365 as Rackspace scrambled to repair the bug. that it had gone mistaken. .

On December 6, Rackspace admitted that the reason for the issue was what many observers suspected: ransomware.

The agency additionally mentioned it had mobilized 1,000 help workers in a bid to cut back wait instances because it tries to deal with a deluge of buyer calls. You may’t assist however really feel sorry for the workers working Rackspace’s buyer help hotlines proper now; It isn’t their fault this occurred, however they’re on the entrance strains coping with an countless stream of irate prospects.

By December 5, Rackspace mentioned it had employed exterior consultants to research the ransomware assault and declined to substantiate whether or not it had paid or was prepared to pay its extortionists the ransom.

In its newest replace, posted on Thursday, December 8, Rackspace mentioned it was “persevering with to work diligently to get every part again up and working and all sources out there to help prospects, together with by deploying a Microsoft Quick Observe staff.” to complement our workforce. Please be assured that we are going to proceed to work across the clock to restrict the impression our prospects are at present experiencing.”

He additionally warned prospects that cybercriminals and scammers might reap the benefits of the scenario by sending emails purporting to come back from Rackspace, and even impersonating them on the telephone. The corporate says it’ll inform prospects if it finds proof that the attackers gained entry to delicate information.

It is clearly an enormous headache for Rackspace prospects, in addition to Rackspace itself.

A few of Rackspace’s prospects have already publicly posted that they’ve left the service, and others will not be holding again from venting their frustration as they proceed to expertise points.

And the harm to Rackspace’s popularity is compounded by the truth that it recurrently promotes its experience with regards to community safety.

And now a number of class motion lawsuits have been filed alleging that Rackspace didn’t adequately shield buyer information.

The reality is that no firm will be 100% positive that it’s going to by no means expertise an embarrassing safety breach. Earlier than any of Rackspace’s rivals get too smug concerning the firm’s woes, they need to ask themselves in the event that they could be subsequent.

As all the time, what issues most will not be a lot whether or not or not a company is affected by a ransomware assault, however how properly it handles the implications and restoration. The issue for Rackspace proper now’s that many firms rely so closely on its service to do their very own enterprise, and their endurance will run out if extra progress is not made quickly.


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Rackspace customers rage following ransomware attack, as class-action lawsuits filed

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