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> The cost to run these for me is less than the cost of the cheapest vps (my total requests per month stay under the free tier limit).

I don't think this is a valid argument. Free-tier VPS do exist also.

On the other hand, if you don't trust unattended-upgrades [0], and prefer to spend time poking package manager manually (while at the same time considering that time an expense) - sure, that's a strong argument in favour of using lambda.

[0] https://ubuntu.com/server/docs/how-to/software/automatic-upd...

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I do not trust a free-tier VPS with my data.
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How is trust model different with lambdas?
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As you yourself said. Your load is so light you keep it in free tier. Their entire business model is for them to capture you while your load is light and then when you scale the price goes up.
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I have also used lambda at scale in professional environments. I would not use a lambda for a webserver at scale, but having an s3 object trigger processing via a lambda function is a really nice flow.
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But the price per unit of measurement goes down, so no, it's not "their entire business model".
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You can also put these lambdas on a shared hosting provider as CGIs and get the exact same experience.
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