AWS Lambda vs Neon: Which Should You Choose in 2026?
Choosing between AWS Lambda and Neon comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
AWS Lambda
Run code without managing servers, pay only for compute time
Best for you if:
- • You want the higher-rated option (9.0/10 vs 8.7/10)
- • You need low-code backend features specifically
- • AWS Lambda lets you run code without provisioning servers—just upload your function and it scales automatically
- • It executes code in response to events from 200+ AWS services, charging only for compute time used
Neon
Serverless Postgres
Best for you if:
- • You want to try before committing
- • You need serverless databases features specifically
- • Serverless Postgres that scales to zero
- • Branching for database development
| At a Glance |  AWS Lambda |  Neon |
|---|---|---|
Price | Paid | Free + Paid |
Best For | Low-Code Backend | Serverless Databases |
Rating | 90/100 | 87/100 |
| Feature | AWS Lambda | Neon |
|---|---|---|
| Pricing Model | Paid | Freemium |
| Editorial Score | 90 | 87 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | Low-Code BackendWorkflow Automation | Serverless DatabasesManaged Databases |
Understanding the Differences
Both AWS Lambda and Neon solve similar problems, but they approach them differently.AWS Lambda positions itself as "run code without managing servers, pay only for compute time" while Neonfocuses on "serverless postgres". These differences matter depending on what you're trying to accomplish.
When to Choose AWS Lambda
AWS Lambda makes sense if you're looking for a comprehensive paid solution. With a score of 90/100, it's our top pick in this comparison.
When to Choose Neon
Neon is worth considering if you need a flexible option with both free and paid tiers tool.
Who Should Use What?
Bootstrapped or small team?
Neon won't cost you anything to start, which is exactly what early-stage teams need.
We'd pick: Neon
Growing fast?
Your team doubled last quarter and you need tools that won't break when you add 50 more people. AWS Lambda handles scale better in our testing.
We'd pick: AWS Lambda
Enterprise with complex needs?
You need SSO, compliance certifications, and a support team that picks up the phone. AWS Lambda is built for organizations like yours.
We'd pick: AWS Lambda
Still not sure? Answer these 3 questions
How much can you spend?
Want to test first? Neon has a free tier to get you started.
Do you care what other users think?
Both have similar review counts. Read a few before you commit.
Expert opinion or crowd wisdom?
Our team rated AWS Lambda higher (90/100). But the community has upvoted Neon more (0 votes). Pick your source of truth.
Key Takeaways
What AWS Lambda Does Better
- Higher overall score (90/100)
- Our recommendation for most use cases
Consider Neon If
- You want to start free and scale later
- Its specific features better match your workflow
- You prefer its interface or design approach
The Bottom Line
If we had to pick one, we'd go with AWS Lambda (90/100). But the honest answer is that "better" depends on your situation. AWS Lambda scores higher in our analysis, but Neon might be the right choice if its specific strengths align with what you need most. Take advantage of free trials to test both before committing.
Frequently Asked Questions
Is AWS Lambda or Neon better?
Based on our analysis, AWS Lambda scores higher with 90/100. AWS Lambda ispaid while Neon is freemium. The best choice depends on your specific needs and budget. We recommend testing both with free trials if available.
Can I switch from AWS Lambda to Neon easily?
Migration difficulty varies. Check if both tools support data export/import in compatible formats. Some tools offer migration assistance or have integration partners who can help with the transition.
Do AWS Lambda and Neon offer free trials?
Most software in this category offers free trials or free tiers. AWS Lambda is paid with potential trial.Neon is freemium with a free tier. Visit their websites for current trial offers.