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Deploy and manage serverless applications using AWS Lambda with infrastructure automation and monitoring best practices. Lambda function optimization: 1. Runtime selection: Node.js 18+ for JavaScript, Python 3.9+ for data processing, Go for performance. 2. Memory allocation: 128MB-10GB, CPU scales proportionally, cost optimization through right-sizing. 3. Cold start mitigation: provisioned concurrency for critical functions, connection pooling. 4. Package optimization: tree-shaking for smaller bundles, layer usage for shared dependencies. Infrastructure management: 1. SAM (Serverless Application Model): template-driven deployment, local testing environment. 2. Serverless Framework: multi-cloud support, plugin ecosystem, environment management. 3. CDK (Cloud Development Kit): programmatic infrastructure, type safety, reusable constructs. Event-driven architecture: 1. API Gateway: REST/HTTP APIs, request/response transformation, caching (5-minute TTL). 2. Event sources: S3 triggers, DynamoDB streams, SQS/SNS integration, scheduled events. 3. State management: Step Functions for workflow orchestration, error handling, retry logic. Monitoring and observability: 1. CloudWatch metrics: invocation count, duration (target <1000ms), error rate (<0.1%). 2. X-Ray tracing: distributed tracing, performance bottleneck identification. 3. Log aggregation: structured logging, log retention policies, cost optimization. Security practices: IAM role-based access, VPC configuration for database access, secrets management with Parameter Store/Secrets Manager, input validation.