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Overview
The cloud computing landscape has always been about balancing simplicity and control. AWS Lambda revolutionized serverless computing by abstracting infrastructure management, allowing developers to focus purely on code. On the other hand, Amazon EC2 provides granular control over compute resources, enabling custom configurations and workloads. But what if you could combine the best of both worlds, AWS Lambda’s operational simplicity with Amazon EC2’s flexibility?
Introducing AWS Lambda Managed Instances, a new paradigm that bridges serverless convenience with the power of managed Amazon EC2 instances. This innovation is designed for teams that love AWS Lambda’s event-driven architecture but need more control over runtime environments, networking, and scaling.
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AWS Lambda Managed Instances
AWS Lambda Managed Instances extend the Lambda model by running your functions on dedicated Amazon EC2 instances managed by AWS. Unlike traditional AWS Lambda, which uses ephemeral execution environments, Managed Instances provide:
- Persistent Compute: Your AWS Lambda functions run on Amazon EC2 instances that persist across invocations.
- Custom AMIs: Bring your own Amazon Machine Image (AMI) for full control over OS, libraries, and dependencies.
- Enhanced Networking: Configure Amazon VPC, security groups, and ENIs like you would with Amazon EC2.
- Predictable Performance: No more cold starts, your instance is always warm and ready.
- Serverless Billing: Pay for execution time, not instance uptime, while AWS handles scaling and lifecycle management.
This hybrid approach is ideal for workloads that require specialized environments, consistent performance, or integration with legacy systems.
Why AWS Lambda Managed Instances?
Traditional AWS Lambda excels at short-lived, stateless tasks. However, developers often face limitations:
- Cold Starts: High latency for infrequently invoked functions.
- Limited Runtime Customization: Restricted ability to install system-level dependencies.
- Ephemeral Storage: No persistent disk for caching or large datasets.
Lambda Managed Instances solve these challenges by offering:
- Warm Execution: Instances remain active, eliminating cold start delays.
- Custom Environments: Use your own AMIs for complete control.
- Persistent Storage: Attach EBS volumes for stateful workloads.
- Extended Timeouts: Go beyond AWS Lambda’s 15-minute limit for long-running processes.
Key Features
- Managed Lifecycle
AWS automatically provisions, monitors, and scales Amazon EC2 instances behind the scenes. You define policies; AWS handles the rest. - Event-Driven Architecture
Functions still trigger via AWS Lambda’s familiar event sources, Amazon API Gateway, Amazon S3, Amazon DynamoDB Streams, etc. - Flexible Scaling
Scale horizontally based on concurrency or vertically by choosing instance types. - Integrated Observability
Amazon CloudWatch metrics, logs, and X-Ray tracing remain fully supported.
Use Cases
- Machine Learning Inference: Deploy models requiring GPU acceleration.
- Media Processing: Handle large video files with persistent storage.
- Financial Analytics: Run complex simulations with predictable performance.
- Enterprise Applications: Integrate with legacy software needing custom OS configurations.
Pricing Model
Pricing for AWS Lambda Managed Instances consists of three components:
- AWS Lambda Request Charges
You pay the standard Lambda request fee of $0.20 per million invocations. - Amazon EC2 Instance Charges
You are billed for the compute capacity provisioned using standard Amazon EC2 pricing. Existing Amazon EC2 pricing agreements, such as Compute Savings Plans and Reserved Instances, apply, helping to reduce costs for steady-state workloads. - Compute Management Fee
A 15% fee is added, calculated on the Amazon EC2 On-Demand instance price, to cover AWS’s operational management of your instances.
Key Differences from Traditional AWS Lambda:
- There is no separate charge for execution duration per request.
- The multi-concurrency feature optimizes costs by reducing the total compute time needed to process requests.
You can start using AWS Lambda Managed Instances through the Lambda console, AWS CLI, or AWS SDKs.
This feature is currently available in the following Regions:
- US East (N. Virginia)
- US East (Ohio)
- US West (Oregon)
- Asia Pacific (Tokyo)
- Europe (Ireland)
Getting Started
- In the AWS Lambda Console, navigate to the Additional resources section in the left pane.
- Select the Capacity Providers tab and click Create.
Configure:
- VPC and Subnet settings
- Security Groups
This tells AWS Lambda where to provision and manage your Amazon EC2 instances.
- Define Instance Preferences
Specify which Amazon EC2 instance types to include or exclude.
Optionally, include all instance types for maximum diversity.
- Set Auto Scaling Controls
Configure:
- Maximum vCPU count
- Scaling policy: Auto Scaling or CPU-based policy
Save and Use the Capacity Provider
After creation, note the Amazon Resource Name (ARN) of your capacity provider.
- Create an AWS Lambda Function
In the AWS Lambda console, choose Create Function.
Select your Capacity Provider ARN.
Configure:
- Memory allocation
- Memory-to-vCPU ratio
Conclusion
AWS Lambda Managed Instances represent a significant step forward in cloud computing flexibility.
Whether you’re running ML models, processing media, or integrating with legacy systems, this new offering opens doors to innovation while keeping operational overhead low.
Drop a query if you have any questions regarding AWS Lambda Managed Instances and we will get back to you quickly.
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About CloudThat
CloudThat is an award-winning company and the first in India to offer cloud training and consulting services worldwide. As a Microsoft Solutions Partner, AWS Advanced Tier Training Partner, and Google Cloud Platform Partner, CloudThat has empowered over 850,000 professionals through 600+ cloud certifications winning global recognition for its training excellence including 20 MCT Trainers in Microsoft’s Global Top 100 and an impressive 12 awards in the last 8 years. CloudThat specializes in Cloud Migration, Data Platforms, DevOps, IoT, and cutting-edge technologies like Gen AI & AI/ML. It has delivered over 500 consulting projects for 250+ organizations in 30+ countries as it continues to empower professionals and enterprises to thrive in the digital-first world.
FAQs
1. How is this different from Amazon EC2 Auto Scaling?
ANS: – AWS Lambda Managed Instances abstract infrastructure management. You don’t manage ASGs, health checks, or scaling policies; AWS does it for you.
2. Can I use my existing AWS Lambda triggers?
ANS: – Yes! All AWS Lambda event sources work seamlessly with Managed Instances.
3. What about cold starts?
ANS: – Cold starts are eliminated because your instances remain warm and ready.
WRITTEN BY Sanket Gaikwad
Sanket is a Cloud-Native Backend Developer at CloudThat, specializing in serverless development, backend systems, and modern frontend frameworks such as React. His expertise spans cloud-native architectures, Python, Dynamics 365, and AI/ML solution design, enabling him to play a key role in building scalable, intelligent applications. Combining strong backend proficiency with a passion for cloud technologies and automation, Sanket delivers robust, enterprise-grade solutions. Outside of work, he enjoys playing cricket and exploring new places through travel.
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December 22, 2025
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