Introducing AWS Lambda Managed Instances: Serverless simplicity with EC2 flexibility | AWS News Blog

Lambda continues to grow in interesting and surprising ways. You can now effectively create your own compute pool to have Lambda invocations run against, which means you can optimize the compute for the specific Lambda tasks that you are running.

Now that we've seen the basic setup, let's explore how Lambda Managed Instances works in more detail. The feature organizes EC2 instances into capacity providers that you configure through the Lambda console, AWS Command Line Interface (AWS CLI), or infrastructure as code (IaC) tools such as AWS CloudFormation, AWS Serverless Application Model (AWS SAM), AWS Cloud Development Kit (AWS CDK) and Terraform. Each capacity provider defines the compute characteristics you need, including instance type, networking configuration, and scaling parameters.

Complicated but allows people to use Lambda for things it would otherwise just not be an option for.