AWS introduced Lambda managed instances at re:Invent, allowing developers to run serverless functions on specific EC2 instance types with predictable pricing. Users can now choose exact hardware, apply compute savings plans or reserved instances for discounts, and pay EC2 pricing plus a 15% management fee instead of duration charges. This hybrid approach targets high-volume workloads where traditional Lambda becomes expensive, offering better performance and cost optimization while maintaining serverless simplicity. Each instance handles up to 64 concurrent invocations per vCPU with automatic scaling, OS updates, and load balancing.
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