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Rackspace customers can use SendGrid to send up to 40K emails a month for free. I wonder how this might impact that deal.

Yup, I was wondering the same. I'm hoping they don't switch out SengGrid for MailGun.

Errr... SendGrid is $9.95 for 40k emails. You get 200 for free, just as with mailgun.

My guess is they'll integrate both products after which Mailgun and SendGrid will become largely equivalent services.

jmcnevin is right, there is a special deal for Rackspace customers. It is documented here https://sendgrid.com/products/rackspace.

Can confirm this deal, I use it with some clients at the moment, I get 40,000 credits per month for free.