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AWS Lambda Project Setup, Deployment and Files Explanation / of AWS Lambda Project Setup Using Console and Code (Step-by-Step)

What is AWS Lambda?

Why we have to learn it, how it is useful in real-time projects, and key features.

Simple Definition

AWS Lambda is a serverless compute service from AWS. You write your code, upload it, and Lambda automatically runs it when an event happens (API call, file upload, message, schedule). You do not create or manage servers.

Why Do We Need AWS Lambda?

AWS Lambda helps us:

  • Run small pieces of code in response to events (API, S3, SQS, cron, etc.).
  • Avoid server setup, patching, and scaling headaches.
  • Pay only for the time our code actually runs (per millisecond billing).
  • Build event-driven and microservice-based architectures very quickly.

Why Should We Learn Lambda?

Learning Lambda is important because:

  • Most modern AWS projects use at least one Lambda function.
  • It is heavily asked in interviews for cloud, data, and backend roles.
  • It connects easily with many AWS services (API Gateway, S3, SNS, SQS, DynamoDB, Step Functions).
  • It is perfect for automation scripts, data pipelines, and lightweight APIs.

How Is Lambda Useful in Real Time?

Typical real-time uses:

  • Process files when they land in S3 (validation, transformation, ETL start).
  • Implement backend APIs with API Gateway + Lambda.
  • Trigger workflows based on events (SQS messages, SNS notifications, database changes).
  • Run scheduled tasks (cron jobs) using EventBridge rules.
  • Glue logic between services in data engineering and microservice systems.

Key Features of AWS Lambda

  • Serverless: No servers to provision or manage.
  • Event-driven: Automatically runs when an event happens.
  • Auto scaling: Scales up and down based on request volume.
  • Pay-per-use pricing: Billed only for execution time and requests.
  • Multiple runtimes: Supports Python, Node.js, Java, .NET, and more.
  • Environment variables: Store configuration without hard-coding.
  • Easy integration: Deeply integrated with S3, API Gateway, SQS, SNS, DynamoDB, etc.
  • Up to 15 minutes per execution: Suitable for small and medium jobs.
  • Built-in logging: Sends logs directly to CloudWatch.
  • Versioning and aliases: Support for safe deployments and rollbacks.

AWS Data Processing Environments

Recommended AWS setups to process small, medium, and large data volumes.

Data Size Main AWS Services When to Use Explanation
Small Data S3 + Lambda + CloudWatch
Simple batch / event based
  • Files from a few KB to ~100–200 MB
  • Logic can finish in < 15 minutes
  • Simple transforms, validation, routing
 Store input/output files in S3, trigger Lambda on events, and use CloudWatch for logs and monitoring. Ideal for lightweight ETL, API-driven processing, or small automation tasks.
Medium Data S3 + Glue (Spark) + Lambda + Step Functions + Athena
Daily / scheduled ETL
  • Data up to tens / hundreds of GB
  • Requires distributed processing
  • Daily or frequent ETL pipelines
 Keep raw and processed data in S3. Use AWS Glue (Spark) jobs for heavy joins and aggregations. Lambda triggers Glue or handles minor logic. Step Functions orchestrate multiple steps, while Athena provides SQL querying on S3.
Large Data S3 + EMR / Glue (big clusters) + Redshift + Kinesis / MSK + Orchestration
Big data + analytics
Streaming (optional)
  • Hundreds of GB to TB+ of data
  • Complex analytics or ML workloads
  • Batch + streaming at scale
 Use S3 as the main data lake. Run heavy processing on EMR clusters or high-capacity Glue jobs. Store analytics data in Redshift. Use Kinesis or MSK for real-time streaming. Workflow orchestration can be managed using Step Functions or Airflow.

AWS Lambda Basic Project Setup – Tools & Software

Python-based AWS Lambda project – required tools, where they are used, and why they are important.

Tool / Software What It Is How We Use It in a Python + AWS Lambda Project
Confluence Page
Documentation
 Confluence is a team documentation and collaboration tool. We document architecture, API contract, setup steps, and troubleshooting.
Azure DevOps Board
Task Tracking
 Used to track user stories, tasks, bugs, and sprints. Create tasks for backend APIs, IAM setup, testing, deployment, etc.
Code Editor (PyCharm)
Development
 Python IDE for writing, running, and debugging code. We build Lambda handlers, helper modules, and tests.
AWS CLI
AWS Access
 Command-line tool to interact with AWS. Used for credentials, checking resources, and triggering deployments.
AWS SAM CLI
Serverless Framework
 Framework to build, test, and deploy serverless applications. Use sam build, sam local invoke, and sam deploy.
Docker Desktop
Local Runtime
 Runs containers locally; required for SAM local testing. Used to simulate Lambda runtime on local machine.
Git
Version Control
 Tracks code changes and enables collaboration. Used for commits, pull requests, and version history.
AWS Account
Cloud Platform
 Account to host AWS resources. Lambda, API Gateway, S3, CloudWatch deployed here.
IAM Permissions
Security
 Controls access to AWS services. Lambda requires specific roles and policies to access services.
CloudWatch
Monitoring
 Logging and monitoring service. Used to debug logs, check errors, performance, and alarms.
CI/CD Tools
Automation
 Automates build, test, and deployment. Pipeline deploys Lambda automatically on code push.