> hideously tentacled software beast had been built that used every possible AWS service that the massive offshore team of developers could find to use
To be fair, if they had a AWS Solution Architect involved they heavily push you down this road and if they manage to get in management's ear they'll push the idea that server-less AWS features is vastly cheaper.
If you're only responding to a handful of requests that's true, but once things ramp up you get "nickel and dimed" for everything: API Gateway requests, lambda execution time, DynamoDB read/write units, CloudWatch logs, outgoing data, step function transitions, S3 requests.
I understand all those services cost money and they shouldn't be free, but I question if paying all those micro-transactions is worse then paying for your own VMs, especially once your customers complain about the cold starts and you think you can fix it with "lambda warming"
To be fair that’s an AWS problem not a lambda problem. If you replace lambda with EC2 the only thing you save in is lambda and step functions(and maybe api gateway but now you need to pay for a load balancer or a public IP), the rest you need to pay for anyway.