AWS Free Tier.

Has anyone got dome knowledge as to why is that even a thing? We can run hundres of thousands free lambda executions and a bunch of other things. I really wanna know what's the business model behind it and how is it beneficial for amazon to provide their services free of charge for so many.


  • 11
    Bait and hook.
    You'll rely upon it after building around it.
  • 2
    free trial
  • 1
    Nothing is for free. Even the death cost your life.

    In your case the price is the freedom as @Root mentioned.
  • 4
    Free for 12 months.
    Gives you time to play and experiment, build a viable product and make it production ready before they start taking your money.

    After that you're to involved with their ecosystem to easily leave.
  • 0
    It's essentially advertisement. They would have set it up so that the value they pay in enabling a free tier would be exceeded by the value of the increased market share it brings (whether monetary value or other stuff like market control etc.)
  • 1
    @iamavalos @heyheni @C0D4 @RememberMe
    These all seem like valid answer, but if it's a "trial" etc. Why is lambda (and few other services) free aven after 12-month free tier period? As mentioned, for first 1M requests
  • 3
    @Gorlami dunno what their business model is in terms of numbers. But AWS operates at such a large scale that
    1. They can handle that load easily
    2. Statistically not everyone uses services to max, which allows them to save on infrastructure
    3. You can bet the cost would have been taken into account in their model for competing with GCP/Azure/etc. and growing their business. Free services make them look more attractive than their competition.

    Basically it's an investment into growing their business in the long run, which would pay off handsomely over time.

    This is about as much as I'm willing to conjecture, any more would require internal data from Amazon
  • 0
    @RememberMe Great stuff! Thanks!
  • 0
    My take on this is that this is similar to fare "tiers" in airliners. Essentially, the bulk of the cost of the entire flight is shouldered by the passengers in the upper class even though there are just a few of them. I have no data to support my claim though. :)
  • 0
    @Gorlami about lambda, they try to push customers over to that product. That simple.
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