AWS Lambda provides automatic scaling of worker instances based on traffic, and by default, functions are deployed to three Availability Zones. API Gateway handles API-level concurrency, simplifying code management. However, understanding the latency in each layer is crucial for identifying performance issues. Telemetry data from AWS services such as CloudWatch and X-Ray can provide insights into latency. DynamoDB's SuccessfulRequestLatency metric reports processing time, but doesn't account for retries or exponential delays. Tracking caller-side latencies using Embedded Metric Format (EMF) helps identify potential causes of slow Lambda response times. Tools like Lumigo offer a more polished developer experience, providing features such as transaction tracing and services latency widgets. These tools help manage complex serverless applications by automating the process of identifying performance issues, debugging slow response times, and optimizing 3rd-party service integrations.