[Ran across this post; thought I'd call out an option that allows you to use AWS S3 but also use AWS EC2/EBS for VM spinup - just in case you're looking to extend this from storage to compute as well.]
If you're willing to run both VDP and VMware vSphere replication software concurrently, you might want to try Boomerang - you could have VMware local backups with VDP and then replicate your VMware vSphere environment to AWS. The cool thing about it is that you pay only S3 storage costs if all you want is storage - but you can spin-up your virtual machine in AWS EC2/EBS on demand as well.