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Determining the Total Cost of Ownership: Comparing Serverless and Server-based Technologies

AWS Lambda is now more cost-effective. Serverless technologies deliver lower TCO when compared to a server-based cloud execution model—with savings of 38–57 percent.

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The popularity of a serverless strategy is growing because it provides the opportunity for faster time to market by dynamically and automatically allocating compute and memory based on user requests. It also provides cost savings through hands-off infrastructure management, which enables organizations to redirect IT budget and development resources from operations to innovation. The pay-for-use model with serverless technologies leads to a shift from large capital expenditure lockup to flexible, on-demand consumption, allowing users to scale, customize, and provision computing resources dynamically to meet their exact needs. This, in turn, increases business agility.