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AWS Enterprise Spending Surges as Hybrid Cloud Utilization Declines

Stocks in this article: AMZN VMW

NEW YORK (TheStreet) -- The opportunity to take a peek into the black box that is Amazon's (AMZN) public cloud vendor giant Amazon Web Services may have finally arrived.

This week, Stackdriver, a Bain Capital Ventures-backed cloud computing systems management start-up released an expansive survey on AWS spending, combining polling results from both this year and last year's AWS re:Invent developers conferences totaling 15,000 participants. The data attests to the optimism underscored by Amazon executives about its cloud prospects one day superseding the company's e-commerce retail business.

The survey shows that enterprise spending on AWS has doubled year over year with nearly half of customers saying they will increase spending in 2014. Twenty three percent of respondents said their monthly spend on AWS exceeded $100,000 in 2013, a jump from 11% in 2012. Forty three percent were spending between $5,001 and $50,000 per month, up from 36%. In total, one third of attendees at re:Invent said they were spending more than $50,000 a month.

Overall, 49% of survey takers said they will increase their public cloud infrastructure as a service footprint, the cloud space dominated by AWS. Low start-up costs, faster innovation abilities and the ease of establishing a global infrastructure exposure were cited as the top draws of the public cloud.

Another striking aspect of the survey is that it shows hybrid cloud usage among AWS customers is declining, which reflects negatively on other cloud players. Major platforms including VMware (VMW) and Rackspace (RAX) with its Openstack software all appear to be declining in usage. Rackspace cloud usage decreased to 11% from 18%, and VMware usage fell to 21% from 26%.

AWS utilization meanwhile rose to 98% from 91% also as more customers depend on hosted AWS applications services, especially RDS. RDS is being used by roughly 50% of AWS customers in 2013.

-- Written by Andrea Tse

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