Cost saving is one of the top reasons people choose cloud computing. In this example of a simple API system, over a few generations of its evolving architecture, we excel at serverless.

Monthly Compute Cost Comparison

This illustration shows a typical journey from hosting an application in a data center, then moving it to the cloud with elastic compute, then modernizing it to containerization, and eventually rewriting or converting it to serverless. A technology stack migration like this.

On-PremisesVM, F5, Java, RDMS (database)$$$
Lift and ShiftEC2, ELB, Java, EC2 (database)$$$
Cloud nativeEC2, ELB, Java, RDS, Auto Scaling$$
ContainerECS/Fargate, ELB/API Gateway, Java, RDS$
ServerlessLambda, API Gateway, Python, Aurora Serverless$
Evolving stack and compute cost

Serverless is not a panacea to all your compute challenges. Please validate your use case and make your best fit selection. If you are dealing with a new application, consider going from the bottom up. That means serverless first!