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AWS (Amazon Web Services) vs Lambda (AWS Serverless)

AWS (Amazon Web Services) logo

AWS (Amazon Web Services)

Cloud

The leading cloud computing platform

From
Free
Rated
-
Full reviewWebsite
Lambda (AWS Serverless) logo

Lambda (AWS Serverless)

Cloud

Run code without thinking about servers

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: AWS (Amazon Web Services) data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills; Lambda (AWS Serverless) billed on two axes at once, $0.20 per million requests plus $0.0000166667 per GB-second of duration, so memory settings change the bill as much as traffic does
  • They diverge on capability: AWS (Amazon Web Services) covers EC2 - Virtual Servers, Lambda (AWS Serverless) covers Function-as-a-Service.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which AWS (Amazon Web Services) and Lambda (AWS Serverless) actually diverge.

Attributes where AWS (Amazon Web Services) and Lambda (AWS Serverless) differ
AttributeAWS (Amazon Web Services)Lambda (AWS Serverless)
PlatformsWeb, Api, Cli, MobileWeb, Api
Founded20062014

Identical on both: starting price (Free), pricing model (usage-based), free tier (Yes), user rating (Not yet rated), category (Cloud).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in AWS (Amazon Web Services)

  • EC2 - Virtual Servers
  • S3 - Object Storage
  • RDS - Managed Database
  • Lambda - Serverless Computing
  • CloudFront - CDN
  • VPC - Virtual Network
  • IAM - Access Management
  • CloudWatch - Monitoring

Only in Lambda (AWS Serverless)

  • Function-as-a-Service
  • Event-driven execution
  • Auto-scaling
  • Pay-per-use
  • Multiple languages
  • Concurrency limits
  • Dead Letter Queues
  • Environment variables

What people use each for

The jobs each tool is most often brought in to do.

AWS (Amazon Web Services)

  • Web hostingnot Lambda (AWS Serverless)
  • Data storagenot Lambda (AWS Serverless)
  • Machine learningnot Lambda (AWS Serverless)
  • Big data analyticsnot Lambda (AWS Serverless)
  • Application developmentnot Lambda (AWS Serverless)

Lambda (AWS Serverless)

  • Event-driven functions without managing serversnot AWS (Amazon Web Services)
  • API backends behind API Gatewaynot AWS (Amazon Web Services)
  • Processing S3, DynamoDB, SQS and Kinesis eventsnot AWS (Amazon Web Services)
  • Scheduled jobs without a always-on instancenot AWS (Amazon Web Services)
  • Edge compute through Lambda@Edgenot AWS (Amazon Web Services)

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

AWS (Amazon Web Services)

  • Data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills
  • Discounts require one or three year Savings Plan commitments rather than being automatic
  • Every service is priced separately, so a working architecture has no single published cost
  • The free tier is a promotional allowance rather than an ongoing free plan

Lambda (AWS Serverless)

  • Billed on two axes at once, $0.20 per million requests plus $0.0000166667 per GB-second of duration, so memory settings change the bill as much as traffic does
  • Provisioned concurrency, used to avoid cold starts, is charged separately at $0.0000041667 per GB-second whether or not the function runs
  • Ephemeral storage beyond the included 512 MB is metered
  • Lambda@Edge costs $0.60 per million requests, three times the standard request rate
  • VPC use and cross-region data transfer carry EC2 charges on top

Pricing, plan by plan

AWS (Amazon Web Services)

Free
  • AWS Free TierFree
    • EC2 750 hours/month
    • 5GB S3 storage
    • 20GB data transfer
  • Pay-As-You-GoFree
    • No upfront payment
    • No long-term commitments
    • Pay only for what you use

Lambda (AWS Serverless)

Free
  • Free TierFree
    • 1M free requests/month
    • 400,000 GB-seconds/month
    • Always free

Which should you pick?

Choose AWS (Amazon Web Services) if

  • You need ec2 - virtual servers.
  • You want to start without paying.
  • You work on Web, Api, Cli, Mobile.
  • You also want s3 - object storage.
AWS (Amazon Web Services) review

Choose Lambda (AWS Serverless) if

  • You need function-as-a-service.
  • You want to start without paying.
  • You work on Web, Api.
  • You also want event-driven execution.
Lambda (AWS Serverless) review

Questions people ask

Is AWS (Amazon Web Services) or Lambda (AWS Serverless) better?
Neither clearly leads. AWS (Amazon Web Services) starts at Free and Lambda (AWS Serverless) at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, AWS (Amazon Web Services) or Lambda (AWS Serverless)?
AWS (Amazon Web Services) starts at Free and Lambda (AWS Serverless) at Free.
Does AWS (Amazon Web Services) or Lambda (AWS Serverless) run on more platforms?
AWS (Amazon Web Services) runs on Web, Api, Cli, Mobile. Lambda (AWS Serverless) runs on Web, Api.
Can I use AWS (Amazon Web Services) for free?
Both have a free tier, so you can try either at no cost before committing.
What is AWS (Amazon Web Services) best used for?
AWS (Amazon Web Services) is most often used for web hosting, data storage, machine learning, big data analytics. Of those, web hosting and data storage are not what Lambda (AWS Serverless) is typically brought in for.
What can AWS (Amazon Web Services) do that Lambda (AWS Serverless) cannot?
AWS (Amazon Web Services) covers EC2 - Virtual Servers, S3 - Object Storage, RDS - Managed Database, Lambda - Serverless Computing. Lambda (AWS Serverless) covers Function-as-a-Service, Event-driven execution, Auto-scaling, Pay-per-use.

Answered from the vendors’ own pages

AWS (Amazon Web Services): What are AWS's payment options and pricing models?

AWS offers four pricing approaches: pay-as-you-go (you pay only for what you use), flat-rate plans combining multiple services into one monthly price without overages, Savings Plans offering discounts on compute and machine learning with 1- or 3-year commitments, and volume-based tiered pricing where costs decrease as usage increases.

Source
Lambda (AWS Serverless): Is there a free tier for AWS Lambda?

Yes. AWS Lambda offers a free tier including 1 million requests per month, 400,000 GB-seconds per month, and 100 GB monthly response streaming.

Source
AWS (Amazon Web Services): Are there contracts, termination fees, or commitments required for AWS?

No long-term contracts are required for AWS services. No termination fees apply once you stop using the service. Savings Plans provide optional 1- or 3-year commitments with discounted hourly rates, but you can revert to pay-as-you-go pricing anytime.

Source
Lambda (AWS Serverless): How is AWS Lambda charged?

Lambda charges $0.20 per million requests. Duration charges are $0.0000166667 per GB-second for x86 (up to 6 billion GB-seconds/month in US East Ohio with tiered pricing). Ephemeral storage over the included 512 MB costs $0.0000000309 per GB-second. Provisioned Concurrency costs $0.0000041667 per GB-second with a 5-minute minimum.

Source
AWS (Amazon Web Services): Does AWS offer a free tier?

AWS provides a free tier that offers hands-on experience with AWS products at no charge. The free tier allows new customers to try eligible services before committing to paid usage.

Source
Lambda (AWS Serverless): What are Lambda Durable Functions pricing?

Lambda Durable Functions include operations at $8.00 per million (start execution, steps, waits). Data written costs $0.25 per GB. Data retention is $0.15 per GB-month with configurable 1-90 day retention (default 14 days).

Source
AWS (Amazon Web Services): How do I estimate my AWS costs?

AWS provides the AWS Pricing Calculator and Cost Explorer tool to estimate costs for single or multiple services. AWS also offers cost optimization recommendations, performance reporting, and budget alerts to help track and control spending.

Source
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