Organisations looking to spend more on AWS cloud-native services, research says

Spend on Amazon Web Services (AWS) cloud-native services, including serverless compute AWS Lambda, data warehouse Amazon Redshift, and streaming platform Amazon Kinesis, is set to go up this year, according to a new study from 2nd Watch.

The Seattle-based firm, an AWS premier partner, found that of 1,000 US IT and business executives, almost half (48%) said they plan to spend at least 10% more on Amazon’s cloud-native options. 35% of all respondents said they planned to spend between 10% and 20% more, compared with 13% who planned to spend 21% to 30% more.

When it comes to reasons for adoption, it all comes down to money, whichever side of the equation you are on. 31% of those polled said the opportunity to increase revenue was the biggest driver for using cloud-native services, while 24% cited the opportunity to decrease costs. Enhanced customer service (22%) and the desire to achieve a faster time to market on new products (20%) were also cited.

Two thirds (66%) of respondents say they expect return on investment from these services, either now or soon.

“The survey results are consistent with what we’re seeing and hearing from our customers,” said Jeff Aden, co-founder at 2nd Watch in a statement. “They are making new investments into these cloud-native services as payoff from previous investments show up, and they’re looking for new ways of creating value and driving down costs.

“As far as challenges go, the largest enterprises will continue seeking support from leading providers that are experts in public cloud and have experience migrating and managing enterprise workloads,” Aden added.

Logicworks, another AWS partner, has previously discussed the importance of services such as Lambda in particular in this publication, describing it in a piece one year ago as ‘in many ways the future of infrastructure-as-code and cloud automation’. “Although it is likely not being adopted by many AWS cloud consumers at this point, it has generated buzz since its spotlight at Re:Invent 2015 and will likely reach many more milestones,” the company wrote.

With this latest research, it seems there is plenty of truth in that last statement.

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