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EC2 vs Lambda: When Should You Choose Which?

EC2 is ideal for long-running server workloads, while Lambda excels at event-driven short tasks. Learn the selection criteria from an SAA-C03 exam perspective.

PHILOLAMB-Updated: January 31, 2026
EC2LambdaServerlessComputeCost Optimization

Related Exam Domains

  • Domain 3: Design High-Performing Architectures
  • Domain 4: Design Cost-Optimized Architectures

Key Takeaway

EC2 is best for continuously running server workloads, while Lambda excels at event-driven short tasks. Choose EC2 when traffic is predictable and 24/7 operation is needed. Choose Lambda for intermittent, short-running tasks.

Exam Tip

Exam Essential: "Serverless", "event-driven", "short execution" → Lambda / "Continuous operation", "stateful", "custom runtime" → EC2

When Should You Use EC2 vs Lambda?

This is the most common question when selecting AWS compute services. These two services take fundamentally different approaches.

EC2 is Best For

  • Web servers requiring 24/7 operation
  • Applications that need to maintain state
  • Batch jobs running longer than 15 minutes
  • Workloads requiring GPU or specialized hardware
  • Custom OS or runtime environments

Lambda is Best For

  • Event-driven processing (S3 uploads, API requests, etc.)
  • Intermittent short-running tasks
  • API backends with high traffic variability
  • Reducing server management overhead
  • Tasks completing within 15 minutes

EC2 vs Lambda: Which Should You Choose?

ComparisonEC2Lambda
BillingPer hour/second (while running)Requests + execution time
Max Execution TimeUnlimited15 minutes
Cold StartNone (always running)Yes (ms to seconds)
ScalabilityRequires Auto Scaling setupAutomatic scaling
State ManagementCan store on instanceStateless (external storage needed)
OS AccessFull accessNot available
MemoryUp to 24TBUp to 10GB

Selection Criteria

  • Choose EC2: 24/7 operation, tasks >15 minutes, state persistence needed, special hardware/OS required
  • Choose Lambda: Event-driven, intermittent execution, reduce server management, need automatic scaling

How to Reduce Costs

EC2 Cost Optimization

  1. Reserved Instances: Up to 72% discount with 1-3 year commitment
  2. Spot Instances: Up to 90% discount (for interruptible workloads)
  3. Savings Plans: Flexible usage commitment

Lambda Cost Optimization

  1. Memory Optimization: Balance cost/performance with appropriate memory settings
  2. Provisioned Concurrency: Reduce cold starts, predictable costs
  3. ARM Architecture: 20% cheaper with Graviton2

SAA-C03 Exam Focus Points

  1. Lambda Limitations: Max 15 minutes execution, 10GB memory, Stateless
  2. Cost Optimization: Intermittent workload → Lambda, Continuous workload → EC2 + Reserved
  3. Architecture Patterns: API Gateway + Lambda (serverless API), ELB + EC2 (traditional web)

Exam Tip

Sample Exam Question: "A web application receives requests only a few times per day, with each request taking 10 seconds to process. What is the most cost-effective solution?" → Answer: Lambda (intermittent + short execution time)

Frequently Asked Questions

Q: How long is Lambda's cold start?

It varies by language and package size. Python/Node.js typically takes 100-200ms, while Java/.NET can take 1-5 seconds. Provisioned Concurrency can solve this issue.

Q: Can I use EC2 and Lambda together?

Yes, many architectures use both. For example, the main application runs on EC2, while asynchronous tasks like image processing are handled by Lambda.

Q: How do I connect to databases from Lambda?

Using RDS Proxy is recommended. It prevents database connection explosion caused by Lambda's concurrent executions.

Q: What if execution time exceeds 15 minutes?

Use Step Functions to chain multiple Lambda functions, or switch to EC2/Fargate. AWS Batch is also a good alternative for batch workloads.

Q: Is Lambda always cheaper than EC2?

No. For consistently high traffic, EC2 + Reserved Instances may be cheaper. You need to calculate the breakeven point.

References