Rackspace Hosting, Inc. (NYSE:RAX) is catching up with Amazon.com when it comes to cloud computing. About a year ago Rackspace Hosting CEO Lanham Napier said that Amazon.com was far ahead of them. But now Napier admits that they are closing the gap against Amazon.com.

Rackspace cloud computing hosting grew over 100% in a year and now the business is contributing to 10% of the overall company revenue for the past third quarter. The Rackspace Cloud originally launched as Mosso LLC in March 2006.

Disclosure: Mosso/Rackspace is the hosting company of Pulse2.com.