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Aprenda Serverless vs VM Cost Tradeoffs | Architecture for Cost Efficiency
Cloud Cost Optimization

bookServerless vs VM Cost Tradeoffs

When you design cloud architectures, one of the most impactful decisions you will make is whether to use a serverless model or rely on traditional virtual machines (VMs). Understanding the pricing mechanics of each approach is essential for cost optimization.

Serverless Pricing (e.g., AWS Lambda)
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  • Pay only for actual usage: charged per execution, duration, and memory allocated.
  • No costs when code is not running; no charges for idle capacity.
  • Infrastructure management handled by the cloud provider.
VM Pricing (e.g., AWS EC2)
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  • Pay for provisioned resources (CPU, memory, storage) regardless of usage.
  • Charged for total uptime, even if resources are underutilized.
  • Must provision for peak usage, which can lead to higher costs for sporadic or unpredictable workloads.

Serverless (AWS Lambda) Cost Breakdown

  • Requests: 1,000,000/month;
  • Duration per request: 0.5 seconds;
  • Memory: 512MB;
  • Total compute: 1,000,000 x 0.5s = 500,000 seconds;
  • GB-seconds: 500,000 seconds x 0.5GB = 250,000 GB-seconds.

AWS Lambda Pricing:

  • $0.20 per 1M requests = $0.20;
  • $0.00001667 per GB-second;
  • Compute cost: 250,000 x $0.00001667 = $4.17.

Total monthly cost: $0.20 + $4.17 = $4.37.

VM (AWS t3.small EC2 Instance) Cost Breakdown

  • Instance: t3.small (2 vCPU, 2GB RAM);
  • On-demand price: ~$0.023 per hour;
  • Monthly uptime: 24 x 30 = 720 hours;
  • Monthly cost: 720 x $0.023 = $16.56.

Total monthly cost: $16.56.

When deciding between serverless and VM-based architectures, consider your workload patterns.

  • Serverless is most cost-effective for workloads with variable, unpredictable, or low-to-moderate traffic, where you do not need to provision for peak capacity and can benefit from per-request billing;
  • It is also ideal for event-driven applications, infrequent batch jobs, and APIs with spiky or seasonal demand;
  • VM-based models are better suited for steady, predictable workloads that require consistent performance, long-running processes, or specialized hardware.
Note
Note

Choose serverless for flexibility and cost savings in unpredictable environments, and choose VMs for stability and control in consistent, high-usage scenarios.

question mark

Which workload pattern is best suited for serverless pricing?

Select the correct answer

Tudo estava claro?

Como podemos melhorá-lo?

Obrigado pelo seu feedback!

Seção 4. Capítulo 2

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bookServerless vs VM Cost Tradeoffs

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When you design cloud architectures, one of the most impactful decisions you will make is whether to use a serverless model or rely on traditional virtual machines (VMs). Understanding the pricing mechanics of each approach is essential for cost optimization.

Serverless Pricing (e.g., AWS Lambda)
expand arrow
  • Pay only for actual usage: charged per execution, duration, and memory allocated.
  • No costs when code is not running; no charges for idle capacity.
  • Infrastructure management handled by the cloud provider.
VM Pricing (e.g., AWS EC2)
expand arrow
  • Pay for provisioned resources (CPU, memory, storage) regardless of usage.
  • Charged for total uptime, even if resources are underutilized.
  • Must provision for peak usage, which can lead to higher costs for sporadic or unpredictable workloads.

Serverless (AWS Lambda) Cost Breakdown

  • Requests: 1,000,000/month;
  • Duration per request: 0.5 seconds;
  • Memory: 512MB;
  • Total compute: 1,000,000 x 0.5s = 500,000 seconds;
  • GB-seconds: 500,000 seconds x 0.5GB = 250,000 GB-seconds.

AWS Lambda Pricing:

  • $0.20 per 1M requests = $0.20;
  • $0.00001667 per GB-second;
  • Compute cost: 250,000 x $0.00001667 = $4.17.

Total monthly cost: $0.20 + $4.17 = $4.37.

VM (AWS t3.small EC2 Instance) Cost Breakdown

  • Instance: t3.small (2 vCPU, 2GB RAM);
  • On-demand price: ~$0.023 per hour;
  • Monthly uptime: 24 x 30 = 720 hours;
  • Monthly cost: 720 x $0.023 = $16.56.

Total monthly cost: $16.56.

When deciding between serverless and VM-based architectures, consider your workload patterns.

  • Serverless is most cost-effective for workloads with variable, unpredictable, or low-to-moderate traffic, where you do not need to provision for peak capacity and can benefit from per-request billing;
  • It is also ideal for event-driven applications, infrequent batch jobs, and APIs with spiky or seasonal demand;
  • VM-based models are better suited for steady, predictable workloads that require consistent performance, long-running processes, or specialized hardware.
Note
Note

Choose serverless for flexibility and cost savings in unpredictable environments, and choose VMs for stability and control in consistent, high-usage scenarios.

question mark

Which workload pattern is best suited for serverless pricing?

Select the correct answer

Tudo estava claro?

Como podemos melhorá-lo?

Obrigado pelo seu feedback!

Seção 4. Capítulo 2
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