FinTech Magazine November 2025 | Page 117

MANAGING AWS COST OPTIMISATION IN THE GEN AI ERA
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Managing AWS cost optimisation in the gen AI era

SERVERLESS COST MANAGEMENT

Serverless is a double-edged sword.“ It offers great scalability, but cost predictability suffers,” Éric observes.“ Unlike traditional instances, every millisecond of execution and every megabyte of memory counts. Small inefficiencies multiply rapidly.”
Consider API Gateway. Each request incurs charges, and at scale, these add up. A traditional Application Load Balancer costs a flat monthly rate plus modest data transfer fees. API Gateway charges per million requests. For hightraffic APIs, the crossover point comes sooner than most teams expect.
Cold starts present another hidden cost. When Lambda functions sit idle, they shut down. The next request triggers a cold start, with initialisation taking time and costing money. There are several methods to optimise these costs including reducing the size of the bundles that make up the Lambda source code, adjusting memory / CPU size, or by using Low Latency Runtimes.
It works well for intermittent workloads but provisioned containers are typically more cost-effective for steady production traffic.
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