Home kellton

Main navigation

  • Services
    • Digital Business Services
      • AI & ML
        • Utilitarian AI
        • Predictive Analytics
        • Generative AI
        • Machine Learning
        • Data Science
        • RPA
      • Digital Experience
        • Product Strategy & Consulting
        • Product Design
        • Product Management
      • Product Engineering
        • Digital Application Development
        • Mobile Engineering
        • IoT & Wearables Solutions
        • Quality Engineering
      • Data & Analytics
        • Data Consulting
        • Data Engineering
        • Data Migration & Modernization
        • Analytics Services
        • Integration & API
      • Cloud Engineering
        • Cloud Consulting
        • Cloud Migration
        • Cloud Managed Services
        • DevSecOps
      • NextGen Services
        • Blockchain
        • Web3
        • Metaverse
        • Digital Signage Solutions
        • Spatial Computing
    • SAP
      • SAP Services
        • S/4HANA Implementations
        • SAP AMS Support
        • SAP Automation
        • SAP Security & GRC
        • SAP Value Added Solutions
        • Other SAP Implementations
      • View All Services
  • Platforms & Products
    • Audit.io
    • Kellton4Health
    • Kellton4NFT
    • Kellton4Commerce
    • KLGAME
    • tHRive
    • Optima
    • Our Data Accelerators
      • Data DigitalTwin
      • SmartScope
      • DataLift
      • SchemaLift
      • Reconcile360
    • View All Products
  • Industries
    • Fintech, Banking, Financial Services & Insurance
    • Retail, E-Commerce & Distribution
    • Pharma, Healthcare & Life Sciences
    • Non-Profit, Government & Education
    • Travel, Logistics & Hospitality
    • HiTech, SaaS, ISV & Communications
    • Manufacturing, Automotive & Chemicals
    • Oil,Gas & Mining
    • Energy & Utilities
    • View All Industries
  • Insights
    • Blogs
    • Brochures
    • Success Stories
    • News / Announcements
    • Webinars
    • White Papers
  • Careers
    • Life At Kellton
    • Jobs
  • About
    • About Us
    • Our Partners
    • Our Leadership
    • Testimonials
    • Analyst Recognitions
    • Investors
    • Privacy-Policy
    • Contact Us
    • Our Delivery Centers
      • India Delivery Center
      • Europe Delivery Center
Search
  1. Home
  2. All Insights
  3. Blogs

Serverless computing: Enabling businesses to scale at the pace of innovation

Cloud
October 03 , 2023
Posted By:
Suraj Kumar
linkedin
serverless computing

Other recent blogs

Generative AI companies
ROI of Generative AI: Measuring its impact and value for your business
April 15 , 2025
Data migration cost
Breaking down the cost of Data Migration: Is it worth in 2025
April 10 , 2025
Data Migration trends 2025
Revealing top Data Migration trends and predictions to watch
April 01 , 2025

Let's talk

Reach out, we'd love to hear from you!

Image CAPTCHA
Get new captcha!
Enter the characters shown in the image.

Before the rise of serverless computing, businesses, more particularly the IT teams, were grappling with a series of challenges due to their increasing dependency on traditional server-based architectures. 

To begin with, they were always unsure about the computing resources they would need to manage workloads efficiently. Estimating the computing needs and provisioning resources would strain their productivity. 

However, the arrival of serverless computing upended the entire tech industry and helped businesses across industries imbibe a new sense of innovation and free up resources that led to increased time-to-time and improved customer satisfaction. 

Here in this blog, we will help you understand how serverless computing can be a game-changer for businesses like yours and how to leverage this technology to ramp up your bottom line. 

What is serverless computing? 

Serverless computing is a complete game-changer for businesses increasingly leveraging technology as a strategic differentiator to build innovative solutions and enhance customer service. It's this new way of doing things where companies no longer have to worry about setting up or taking care of physical servers. Instead, these cloud companies handle all the nitty-gritty details of getting computing power ready and running. So, developers get to kick back and focus on what they do best: writing code.

Functions are pivotal for serverless computing to work. These functions are often small, event-triggered pieces of code that execute specific tasks. These functions are executed in stateless, ephemeral containers, activated by events such as HTTP requests, database changes, or timers. As a result, serverless computing allows for dynamic scaling, where resources are allocated in response to demand, ensuring optimal performance without manual intervention. Key players like Amazon Web Services (AWS) Lambda, Microsoft Azure Functions, and Google Cloud Functions are leading the charge in enabling serverless capabilities, with many companies across sectors migrating to this approach to enhance efficiency and innovation.

Serverless computing vs. traditional server-based computing (How it differs from earlier technology) 

In many ways, serverless computing is the complete opposite of traditional computing models that depend on on-premises servers or data centers. At its core, serverless computing takes the weight off a developer’s shoulders and places it somewhere unknown (often, a cloud service provider, such as Google Cloud or Amazon AWS.) In such a setup, technology teams can focus on what matters the most (the architecture, the features, and the security aspects of the application being built) and considerably less on the computing side. 

 

 Serverless computing 

 Traditional computing

 Resource provisioning Automated 

 Manual provisioning and management 

 Infrastructure control 

 Cloud service company owns the control 

 Control lies with the company 

 Costs

 Flexible (pay-as-you-go pricing)

Fixed costs 

 Scaling

 Automatic and dynamic scaling 

 Requires manual provisioning in advance

 Operational overhead

 Minimal intervention required

 Extensive manual interventions are required

 Event-driven

 Triggered by events (e.g., HTTP requests)  

 Not inherently event-driven
 
 Latency

 Low latency on account of automatic, dynamic scaling

 Leads to higher latency 

Vendor lock-in

 Potential dependence on the provider's ecosystem   

 More flexibility in technology choices


How businesses stand to gain big from serverless computing 

  • Improved developer productivity
    Serverless technology allows your development team to focus on writing neat and clean code instead of wasting their time and resources on provisioning, managing, or scaling infrastructure. 
     
  • Rapid deployment
    With serverless, DevOps teams don’t have to spend time defining any of the infrastructure needed for integration, testing, delivering, or deploying code. They simply write and deploy into production.
     
  • Build with any language
    Serverless computing allows development teams to build in any language or framework they are comfortable with, whether it’s Java, Node.js, Go, Python, .NET, or something else. 
     
  • Out-of-box scalability
    A serverless architecture has an inherent ability to scale both upwards and downwards. In contrast to autoscaling methods in traditional cloud computing models that demand precise rule adjustments, the autoscaling feature in serverless setups is immediate and can even reduce scaling to a complete halt, down to zero.
     
  • Flexible pricing 
    Companies struggle with the skyrocketing costs associated with owning and operating traditional data centers or servers, where they even need to incur expenses for idle capacity. This is not the case with serverless systems where the pricing models are based on the actual usage of compute and the time it takes to execute a function. With serverless services in AWS, Google Cloud, or any other service provider, you can reduce your operational costs while paving the way for faster development and deployment. 

Companies of all shapes and sizes can interweave serverless computing in their technical arsenal to reap its benefits and, along the way, transform how they innovate, collaborate, and deliver value to their customers. However, you should also understand that serverless computing has limitations that must be addressed effectively. 

Serverless use cases — Leading-edge brands generate intrinsic business value with serverless computing

Driven by a rapid rise in the demand for cloud computing and microservices, serverless technology saw a dramatic surge in its adoption across industries. Other factors that led to the growth in the serverless computing market included the increasing focus of business and tech leaders to enhance their agility, scalability, and pace of innovation without increasing costs. The companies that adopted serverless technology saw significant results. Here are a few leading-edge companies that harnessed the technology to reduce operational costs while improving developer productivity and customer satisfaction. 

Slack: A cloud-based business communication platform that uses a serverless application called Marbot to send notifications from AWS to DevOps teams.

Netflix: Amazon Web Services Lambda is used by Netflix to run tasks that would otherwise require a great deal of computing time and effort.

Coca-Cola: AWS-based vending machine software. Since the vending machines communicate with the head office and transmit data for inventory and marketing purposes, the ability to pay for actual consumption significantly reduced the cost of the whole project.

Serverless computing is not a silver bullet 

Eliminating the need to build and maintain the underlying infrastructure (servers) has its share of benefits. However, it can not solve all your business problems. Here are some disadvantages that often come when choosing serverless technology. 

Drawbacks of serverless computing:

  • Relinquished control over servers: Shifting to a serverless architecture leads to significantly reduced control over direct server management. 
  • Security concerns: Serverless companies may run your code along with multiple other clients on a single server, thus exposing your systems and applications to increased security risks. Isolation between clients can be challenging to ensure.
  • Testing complexity: Replicating the production environment for testing purposes can be intricate within a serverless setup.
  • Performance can take a hit: Serverless architectures can exhibit performance fluctuations since the code may run on different servers across executions, leading to varying processing times.
  • Less economical for prolonged processes: Serverless services are billed based on code runtime, which makes them less cost-effective for tasks with extended processing times.

To make an informed choice between server and serverless computing, it's essential to thoroughly understand the advantages and disadvantages of each solution and align them with the specific needs of your business.

Final words  

Serverless computing abstracts all the complexities of infrastructure management and allows companies to build and run applications at the speed of business. It also emerges as a quick way to gain agility, scalability, and cost-effectiveness in operations. However, like every other technology, it has its pros and cons, and thus, companies need to deliberate on whether they will benefit from serverless architecture or should stay away from it. 

Whether you want to explore more about serverless platforms or supercharge your applications or development efforts with leading-edge serverless services, Kellton can help. To initiate a conversation, please connect with our experts. 

Want to know more?

The Cloud Showdown
Blog
How AWS, Azure, and GCP stack up on different parameters ?
March 20 , 2025
Thumbnail site Reliability Engineering (SRE) can revolutionize system reliability
Blog
How Site Reliability Engineering (SRE) can revolutionize system reliability: From downtime to uptime
February 26 , 2025
7 most powerful IT infrastructure trends
Blog
7 most powerful IT infrastructure trends for 2025 (And beyond)
February 26 , 2025

North America: +1.844.469.8900

Asia: +91.124.469.8900

Europe: +44.203.807.6911

Email: ask@kellton.com

Footer menu right

  • Services
  • Platforms & Products
  • Industries
  • Insights

Footer Menu Left

  • About
  • News
  • Careers
  • Contact
LinkedIn Twitter Youtube
clutch Badge

© 2024 Kellton