What Is Amazon Lambda? (How It Works, Price + More)

Amazon has a reputation for cutting-edge technology, and the innovation continues as Amazon Web Services becomes one of the top choices for dependable cloud solutions.

Speaking of cloud computing, if you’re currently using Amazon Web Services (AWS) or thinking about making the switch, you may be wondering what is Amazon Lambda? I looked into this for you, so here are all the most important things you should know!

What Is Amazon Lambda In [currentyear]?

Amazon Lambda is a serverless coding service that can launch without provisioning servers on almost any application in [currentyear]. More than 200 Amazon Web Services support Lambda, which works on software as a service (SaaS) platforms, too. As part of AWS, Lambda is billed by usage, making it a cost-effective way to run code without clusters or servers.

If you’re curious about Amazon Lambda and want to know more, including what it does and how it’s used by modern businesses, keep reading!

How Does Amazon Lambda Work?

Amazon Lambda supports ultra-fast processing after a file is uploaded to an Amazon S3 bucket.

For example, if a photo is uploaded to S3, then Lambda can be triggered to run image resizing code, automatically resulting in new sizes for web, mobile, and tablet.

This is just one of the countless examples of how Amazon Lambda works by launching code functions without a server or cluster.

In addition to file and stream processing, Amazon Lambda supports web applications and mobile/IoT backends.

Amazon Lambda only requires code to be uploaded as a container image or .zip file. The technology handles things from there, responding to execution requests automatically to ensure efficient actions.

Who Uses Amazon Lambda?

Amazon Lambda is used by web developers at businesses of all sizes, as this program is scalable just like other AWS solutions.

Some large corporations making good use of Lambda include Coca-Cola, Stedi, Fender, and Nielsen, which rely on Lambda for B2B transactions and data processing.

Additionally, more and more small and medium-sized businesses are using Lambda to execute code at scale for automatic data processing with unique event triggers.

For organizations using machine learning, Lambda simplifies scaling and delivers powerful insights while supporting event-driven applications simultaneously.

Lambda is also used to support secure web and mobile backends for interactive experiences.

How Much Does Amazon Lambda Cost?

How Much Does Amazon Lambda Cost?

One of the most attractive advantages of Amazon Lambda is the affordable cost, with a free tier for up to one million requests and 400,000 GB seconds of computing time every month.

As part of the Amazon Compute Savings Plans, AWS Lambda has a flexible pricing model if you want to commit to a consistent usage amount for one or three years.

These plans help you save up to 17% on costs, although you don’t have to commit if you’re not sure.

In that case, you will be charged per user based on total function requests and how long code execution takes.

Lambda pricing varies by region, but in the U.S., typical costs are around $0.0000166667 for every GB-second consumed on the x86 processing architecture.

 Additionally, costs are $0.0000133334 for every GB-second on the Arm architecture.

$0.20 per one million requests is standard for both architecture options, while the duration cost will vary based on how much memory you allocate to the coding function.

You can get a more detailed idea of how much Amazon Lambda will cost you with the AWS Pricing Calculator.

How Do I Launch Amazon Lambda?

After exploring your coding options and deciding to go with the serverless Lambda program on AWS, you need to either sign in to your AWS account or sign up if you don’t have one.

You can set up your Lambda preferences on the official AWS Lambda page, where there are additional tutorials and resources explaining how the program works.

Before running serverless code, you will need to build your first Lambda function, and then you can work on developing serverless apps.

You may also want to check out pre-built applications in the AWS Serverless Application Repository.

If you’re using other AWS services, such as Amazon Kinesis or CloudWatch, you can set your preferences for how Lambda runs in these applications.

To know more, you can also read our posts on what is Amazon Kinesis, what is Amazon FBA, and what is Amazon.Mx.


If you’re a business developer looking for a better way to run code without the hassle and cost of clusters and servers, then Amazon Lambda may be a great alternative to put on your radar.

This event-driven, server-free compute solution allows code applications for almost all backend services, with Lambda quickly launched in over 200 AWS programs.

Photo of author

Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of QuerySprout.com.

Leave a Comment