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EC2 vs Lambda: Which is More Cost-Effective?

An example of an AI chatbot conversation about comparing EC2 and Lambda costs.

😀
You

Can you help me understand the cost differences between EC2 and Lambda?

MagicBuddy
MagicBuddy

Sure! EC2 instances are billed based on the time they are running, while Lambda charges you based on the number of requests and execution time.

😀
You

What factors should I consider when choosing between them?

MagicBuddy
MagicBuddy

Consider factors like workload type, scalability needs, and how often your application runs. EC2 is great for long-running tasks, while Lambda is ideal for event-driven applications.

😀
You

Can you give me an example of a scenario where Lambda would be cheaper?

MagicBuddy
MagicBuddy

Absolutely! If you have a web application that only runs during peak hours, using Lambda can save costs since you only pay for the execution time during those hours.

😀
You

What about data transfer costs? Are they different?

MagicBuddy
MagicBuddy

Yes, data transfer costs can vary. EC2 may incur charges for data going in and out, while Lambda has a free tier for data transfer, but charges apply after exceeding limits.

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