AWS Lambda Cost Optimization: Tips and Tricks for Reducing Your Serverless Costs

There are several ways to optimise costs with AWS Lambda:

Use the AWS Lambda pricing calculator to estimate the cost of your function. This can help you understand the cost implications of your configuration choices.
AWS estimation calculator is a great tool for calculator.aws for cost projections

1. Choose the right balance of memory and CPU capacity for your functions. AWS Lambda charges you for the number of requests and the duration of each request. By increasing the amount of memory you allocate to your function, you can increase its CPU capacity and possibly reduce the duration of each request. This can result in lower costs.

To increase the memory allocated to your AWS Lambda function, follow these steps:

• Sign in to the AWS Management Console and navigate to the AWS Lambda page.
• Find the function you want to modify, and click on its name to go to the function’s configuration page.
• On the configuration page, click the “Configuration” tab.
• Scroll down to the “Memory (MB)” field and use the slider or enter a value to increase the amount of memory allocated to your function.
• Click the “Save” button at the top of the page to save your changes

1. Use AWS Lambda reserved capacity. You can purchase a reservation for a specific number of capacity units for a 1 or 3 year term, which can significantly reduce your Lambda costs.

To reserve capacity for your AWS Lambda functions, follow these steps:

• Sign in to the AWS Management Console and navigate to the AWS Lambda page.
• Click the “Reserved capacity” tab.
• Click the “Purchase reserved capacity” button.
• Select the number of capacity units you want to purchase and the term (1 or 3 years) for your reservation.
• Select the functions you want to apply the reserved capacity to, or create a new function.
• Review your reservation details and click “Continue to review.”
• Review the reservation details and click “Create reservation.”

1. Use versioning and aliases to ensure that you have control over which version of your function is being used. This allows you to test new versions of your function before routing all traffic to it, which can help you avoid unexpected increases in cost.

2. Use AWS CloudWatch to monitor the performance of your functions and identify any cost drivers. This can help you identify opportunities to optimise your functions and reduce your costs.

To view AWS CloudWatch logs for your AWS Lambda functions, follow these steps:

• Sign in to the AWS Management Console and navigate to the AWS CloudWatch page.
• In the left-hand navigation menu, click “Logs.”
• In the “Log Groups” section, click the log group for your Lambda function. The log group will have the same name as your function.
• Select the time range you want to view logs for, and click the “Go” button.
• You will see a list of all log streams for your function, grouped by function version or alias. Click on a log stream to view its logs.
• You can use the search box and filter options to find specific log events within the log stream.
• You can also use CloudWatch to set up alarms and notifications based on specific log events, or to visualise your logs data using CloudWatch dashboards.

1. Consider using other, more cost-effective services in combination with AWS Lambda. For example, you might use Amazon S3 for long-term storage or Amazon EC2 for workloads that are better suited to a traditional server architecture.

2. If you have a large number of functions that are not used frequently, consider using the AWS Lambda function auto-scaling feature to scale your functions in and out based on actual usage. This can help you save money by only paying for the capacity you need.

I hope these tips help!