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The essential component for orchestrating serverless applications on AWS is Amazon Lambda. This service allows developers to run code without the need to provision or manage servers, which is a core principle of serverless architecture. By using Lambda, users can execute their functions in response to various events, such as HTTP requests via API Gateway, updates in databases, or file uploads to S3, among others. This event-driven model enables a highly scalable and efficient way to build applications.

In the context of serverless applications, Lambda handles the execution of the individual pieces of code (or functions) that make up the application. This means that developers can focus on writing their application logic without worrying about the underlying infrastructure, allowing for quicker iterations and deployments.

Other services mentioned, like Amazon EC2, Amazon RDS, and Amazon S3, serve different purposes. EC2 is centered around virtual server instances and requires management of server infrastructure, which does not align with the serverless model. RDS is a managed relational database service, and while it can be part of a serverless application, it does not orchestrate the application itself. S3 is a storage service that is frequently used in serverless applications, but it does not handle the execution of code or application logic