Rackspace has increased server costs twofold, and nobody has noticed.

Below is the Official Rackspace Response to this thread:

vCPU allocations for next generation cloud servers were adjusted to provide more consistent performance, not to extract more profit. Rackspace is not making any more money per server than before. In fact, we recently reduced the price for 512Mb and 30Gb servers by an average of 30%. We take transparency seriously, so we published an article detailing the changes and explaining the logic behind it which you can read here: http://www.rackspace.com/knowledge_center/whitepaper/cpu-in-....

Erik Carlin, director of product management put it this way “"Our goal is to find the sweet spot that maximizes price performance while still providing a consistent experience." Customers with larger flavors are experiencing higher and more consistent performance with next generation cloud servers. Depending on the load running at a given time in neighbor instances, performance can be higher for small instances too. We are working with a third party on benchmarks which we expect to publish in the next few weeks.

We'd be happy to look into what happened. If you'd like us to, please email help@rackspace.com with your account info and details about the experience that you're referencing. Thanks.

Oh hell no. I'll never deal with you guys again.