5 Ways To Reduce On Costs With Serverless

Effective tips to save and manage costs on the cloud with serverless services.

Author

Uriel Bitton
December 22, 2024

Are unexpected cloud costs keeping you up at night?

Serverless computing might be the solution you're looking for.

Here's how switching to serverless can help optimize your cloud spending while maintaining scalability and performance.

1. Pay Only for What You Use

Unlike traditional servers that charge you 24/7, serverless computing follows a pay-per-use model.

Your functions run only when needed and automatically stop when done, charging you for mere milliseconds of usage. This is particularly cost-effective for applications with ephemeral transactions.

2. Save on Infrastructure Management

By eliminating server maintenance, you not only reduce direct infrastructure costs but also save on expensive expertise hiring.

Serverless functions can be managed by regular developers, removing the need for specialized server management teams.

3. Scale Automatically, Pay Accordingly

Services like AWS Lambda, API Gateway, and DynamoDB scale automatically with your workload.

There's no need to over-provision resources "just in case."

When traffic is low, you pay less; when it spikes, the services scale automatically without manual intervention.

4. Accelerate Development at Lower Costs

AWS offers generous free tiers for serverless services:

  • 1 million free Lambda function executions monthly

  • 25 free DynamoDB read/write capacity units

  • Additional free tiers for services like S3, API Gateway, and AppSync

5. AWS Credits for Startups

If you're a startup, AWS offers up to $100,000 in credits for qualifying companies. Combined with serverless architecture, this can significantly reduce your initial cloud computing costs.

By embracing serverless computing, you can focus on building your application while keeping costs predictable and manageable. The days of paying for idle servers are over.

One Tip To Save Costs

Use reserved concurrency for your Lambda functions.

You can set reserved concurrency limits on your functions to prevent unexpected cost spikes from runaway scenarios like infinite loops or DDoS attacks.

For instance, if your app typically needs no more than 100 concurrent executions, setting this as your limit creates a cost ceiling while maintaining normal operations.

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