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If you expect a steady load of hundreds of requests per second - maybe API Gateway + Lambda is not the best solution. The use-case in the article did not have such load targets. Lambda is not a silver bullet..

In this scenario, the savings come from time + resources spent on configuration management, system admin and troubleshooting, and server security.

Also if you have servers you are probably auto-scaling redundant instances in multiple availability zones and then getting that high CPU utilization is unlikely.

I guess this number goes down drastically if you throw in CloudFront.