Rackspace says its revenue increased 20% in the first quarter, but the figure was below analysts' expectations because of the increasing popularity of Amazon Web Services and Rackspace's devotion to open source and OpenStack when it comes to the cloud, Larry Dignan writes. Who will eventually win out is a topic of debate among industry watchers, as is whether Rackspace's strategy to focus on current customers, rather than to lure new customers, will prove successful. "It's clear that Amazon Web Services is doing really well. ... Our personal belief is that open source is a better development model framework than a proprietary system is," Rackspace CEO Lanham Napier said.

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