And yes, bandwidth costs can be brutal, especially if you try to build a hybrid solution that uses heavy services that live outside of AWS.
That said, the above comment didn't get into enough detail to get an accurate read on their bandwidth or CPU/Memory/Storage utilization, but if they can run it in a lab for $5/mo (which I doubt, since that barely covers power), then it can't be much, so I think it's fair to assume it's at least back-of-the-napkin similar scale.
My point was just that it doesn't have to cost over $1k on Amazon to run a combination of services which apparently CAN run in a private lab for $5/mo, however that is calculated. I can't run my full stack even without load (due to memory commit) on my 32GB, 3 year old Xeon workstation, and that would cost a lot more than $5/mo at any provider I am aware of.
If you wrote exactly the numbers of instances and types -> we could have a real comparison then.
* AWS MSK (Kafka server) with redundant instances across 3 AZs
* Aurora Posgres instance with redundancy across 3 AZs
* Multiple Lambdas for incoming messages from MQTT to Kafka
* IoT/MQTT and about a dozen iot devices sending telemetry continuously (every second)
* 20+ services with nearly 40 tasks, running on ECS
* All the supporting route53, certificates, VPCs etc. for the above
* A bunch of miscellaneous stuff I've forgotten that's used by other developers.
* All deployed via TF
_THAT_ all costs well under a grand. You're doing it wrong.