That said, as an example, an m8g.8xlarge gives you 32 vCPU / 128 GiB RAM for about $1000/month in us-east-1 for current on-demand pricing, and that drops to just under $700 if you can do a 1-year RI. I’m guessing this application isn’t super memory-heavy, so you could save even more by switching to the c-family: same vCPU, half the RAM.
Stick two of those behind a load balancer, and you have more compute than a lot of places actually need.
Or, if you have anything resembling PMF, spend $10K or so on a few used servers and put them into some good colo providers. They’ll do hardware replacement for you (for a fee).
They just use two servers and configure a loadbalancer within Cloudflare. Come on. Self-Hosting is no rocket science. You don‘t have to make it seem complicated. People have been doing this decades before AWS invented serverless.
Only if that system is stateless. If you have any sort of internal memory that sticks around between requests, then either you face a cold start problem (because of empty caches) or you somehow need to persist that state somewhere. And persisting that state either means you need a backup solution or your latency is terrible because you are hitting network for something that only needs to hit RAM.