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Please refer the blog https://aws.amazon.com/blogs/big-data/amazon-kinesis-data-streams-on-demand-capacity-mode-now-scales-up-to-1-gb-second-ingest-capacity/ which talks about Kinesis Data Streasm scenarios. For majority of the cases on-demand mode is the best but during major event like when you anticipate a sudden surge , you can start with provisioned mode and then switch to on-demand. This will help you set the water mark at provisioned capacity limits even after switching to on-demand mode. Also keep in mind provisioned mode is costly so its better to use it for certain peak load cases only. To answer your questions, the throughput applies at stream level. If you need higher limits, you can request a limit increase through AWS Support with valid use case justification
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