Tech Trends & Industry

AWS Lambda vs a Small VPS: When to Choose Which

January 18, 2025 β€’ 2 min read β€’ By Amey Lokare

🎯 The Trade-off

Lambda is serverless and scales automatically. A VPS is predictable and cheap. Which should you choose?

βœ… When Lambda Wins

1. Sporadic Traffic

If your app gets traffic in bursts, Lambda is perfect. You pay only when it runs. A VPS costs money even when idle.

2. Simple Functions

Lambda excels at simple, stateless functions: API endpoints, image processing, scheduled tasks. If it's a single-purpose function, Lambda fits.

3. No Ops Overhead

Lambda handles scaling, patching, and infrastructure. You just write code. For small teams, that's valuable.

βœ… When a VPS Wins

1. Steady Traffic

If you have consistent traffic, a VPS is cheaper. $5/month gets you a small VPS that can handle moderate traffic. Lambda would cost more.

2. Long-Running Processes

Lambda has timeout limits (15 minutes max). If you need long-running processes, background jobs, or WebSocket connections, use a VPS.

3. Predictable Costs

VPS costs are fixed. Lambda costs scale with usage. If you want predictable bills, VPS is simpler.

4. Full Control

Need to install specific software, use custom binaries, or have full root access? VPS gives you that. Lambda is more constrained.

πŸ’° Cost Comparison

For low traffic (under 1M requests/month):

  • Lambda: ~$0.20/month (free tier covers most)
  • VPS: $5/month (fixed cost)

For moderate traffic (10M requests/month):

  • Lambda: ~$20/month
  • VPS: $5/month

For high traffic (100M+ requests/month):

  • Lambda: ~$200/month
  • VPS: $20–40/month (bigger instance)

πŸ’‘ My Rule of Thumb

Start with a VPS if:

  • You have steady traffic
  • You want predictable costs
  • You need full control

Use Lambda if:

  • Traffic is sporadic
  • You're building simple functions
  • You want zero ops overhead

πŸ’­ My Take

Lambda isn't always better. For many apps, a small VPS is simpler, cheaper, and more flexible.

Don't default to serverless. Choose based on your actual needs, not the hype.

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