[antaviana]

There are chances that degradation or unavailability are not free as in beer.

If the degraded or offline system is used by people, and these people cannot work, the cost can be a lot higher. For example, 10 people not able to work could cost something in the range of $250-$750 per hour.

Moreover, if customers are lost due to this degradation of service and CAC is high, then clearly the cheapest thing is a high bill by AWS, which probably is also capped by Amazon (and handled as an alert by Amazon).

[eridius]

Oh sure. That's why I posed it as a question. Service degrading or going offline could be disastrous and cause losses of thousands of dollars or more, depending on what the service is. But there's also plenty of services where it's cheaper to have the service go down than it is to get an outsized AWS bill. This is just something you need to be aware of when deciding if serverless is the way to go.