The OpenTelemetry Lambda Collector is a new component that simplifies the setup of OpenTelemetry agents for serverless functions like AWS Lambda. It reduces latency and overhead by batching and compressing telemetry data before sending it to an observability backend, such as New Relic. AWS Distro for OpenTelemetry (ADOT) is a secure, production-ready distribution of the OpenTelemetry project that provides auto-instrumentation for serverless applications running on AWS Lambda, Amazon Elastic Compute Cloud (EC2), and other AWS services. ADOT simplifies setup and management with pre-built Lambda layers and integrations, but offers limited control over customizing exporters and instrumentation compared to manual configuration. The guide demonstrates how to use ADOT with the AWS Lambda function using the Serverless Framework, deploying the Lambda function with an API gateway for the entry point, adding ADOT as a Lambda layer, and deploying and exploring data in the New Relic platform.