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AWS Lambda Is Dead. The $0.20 Was Never the Price

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Cost analysis of migrating off AWS Lambda, highly actionable for cloud infrastructure decisions.

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AWS Lambda Is Dead. The $0.20 Was Never the Price
Summary

After migrating 47 Lambda functions, a team's monthly bill dropped from $8,362 to $1,790, revealing that Lambda's $0.20/request is a loss leader for a bundle where API Gateway, CloudWatch, and NAT dominate. The August 2025 INIT billing change now charges for cold start initialization, hitting JVM and ML functions hardest, with 23% of customer-facing invocations experiencing cold starts. The crossover point where Fargate or Workers wins has moved from 20M to 2M invocations per month, making Lambda uneconomical for most API, webhook, and auth workloads.