Businesses are always seeking innovations that can help them boost efficiency, cut costs, and stay competitive. One technology that has become more popular in recent years is serverless computing. While serverless computing offers many benefits, it also has its share of challenges.
In this article, we’ll discuss the pros and cons of serverless computing so you can determine if it fits your business needs.
What is serverless computing?
Serverless computing is a cloud service that shifts the responsibility of managing servers from businesses to cloud providers. Contrary to its name, serverless computing involves servers — but they are fully managed by the provider.
So, instead of purchasing and maintaining physical servers, businesses pay only for the computing resources their applications use. Think of it as using electricity from a power grid instead of managing your own generator. You pay for the electricity you use without worrying about maintenance or capacity — this is how serverless computing works for IT infrastructures.
Benefits of serverless computing
Serverless computing offers many advantages, including:
No server management required
One of the key benefits of serverless computing is that you don’t have to purchase, configure, or maintain physical servers. Cloud providers handle backend operations, freeing up your valuable time and resources for other priorities.
Reduced costs
Serverless computing uses a pay-as-you-go model, charging you only for the resources you use, which are often calculated in milliseconds of execution time. This approach eliminates the need for costly hardware, software, and IT personnel dedicated to server management. Compared to traditional server setups, where companies must estimate capacity and often pay for unused resources, serverless computing offers significant cost savings and greater efficiency.
Scalability
Serverless platforms automatically scale resources based on demand. Whether your traffic spikes suddenly or dips during off-hours, the system adjusts without manual intervention. This feature is particularly beneficial for applications with unpredictable or fluctuating traffic, ensuring smooth operation without the risk of downtime or server overload.
Faster time to market
With no need to handle backend setup, developers can launch applications more quickly. Serverless computing also makes it easier to apply updates and fixes to specific parts of an application instead of the whole system, allowing new features and improvements to be rolled out quickly.
Reduced latency
Serverless platforms use servers located in different regions to run code closer to the users, which helps reduce delays and improves how quickly applications respond.
Potential challenges of serverless computing
When deciding if serverless computing is right for your business, it's important to consider its drawbacks and how they can impact your business:
Vendor lock-in
Serverless computing often ties businesses to specific cloud providers. Each provider has unique features, workflows, and APIs, which can make migrating to another cloud platform complex and costly.
Testing and debugging difficulties
It can be difficult to recreate a serverless environment for testing. Debugging is also more complicated because developers have less insight into how the backend works and need to troubleshoot smaller, separate functions.
Security concerns
Sharing infrastructure with other customers, known as multi tenancy, can create potential security risks. In a multitenant setup, multiple organizations use the same physical servers or cloud resources, separated only by virtual boundaries. If these boundaries are not properly implemented or maintained, there’s a chance that one customer’s data or operations could be accidentally accessed or impacted by another.
To mitigate these risks, businesses need to carefully evaluate their provider's security practices and take additional steps, such as encrypting sensitive data and regularly monitoring their cloud environment for unusual activity.
Limited control
In serverless computing, the cloud provider manages the infrastructure, leaving businesses with minimal control over how data is stored, processed, or secured. While this simplifies operations, it creates challenges for organizations subject to regulations such as HIPAA or PCI DSS, which may require data to be stored in specific locations, encrypted to certain standards, or supported by detailed audit trails.
Since businesses must rely on the provider to meet these requirements, they have limited ability to verify or customize compliance measures. This lack of control can complicate audits and make it harder to ensure all safeguards are in place.
Compatibility issues
Not all applications support serverless computing. For example, Microsoft’s Azure SQL database services provide an alternative to a standard SQL Server database server. But not all features are support in the serverless version, so thorough planning with any vendors involved and testing is needed to ensure a smooth migration experience.
Is serverless computing right for your business?
Serverless computing is ideal for businesses that:
- Need a scalable solution for applications with variable traffic – Serverless platforms dynamically adjust resources, ensuring cost efficiency and consistent performance during peak times.
- Want to minimize infrastructure costs – The pay-as-you-go model eliminates upfront hardware investments and ongoing maintenance expenses.
- Prioritize quick deployments and frequent updates – Serverless environments enable rapid innovation and faster product iterations.
- Operate event-driven applications– Serverless setups are perfect for lightweight, modular applications, including chatbots, data processing, or IoT services.
However, it may be better to avoid serverless computing if:
- Your application requires consistent, long-running processes – Serverless platforms are optimized for short, event-driven tasks rather than continuous operations.
- You have predictable, stable workloads – Traditional servers might be more cost-effective for steady resource needs.
- You’re concerned about vendor lock-in or security – Dependence on a single provider could pose challenges if you need to switch platforms or encounter issues with the provider’s infrastructure.
- Migrating legacy applications would be too complex or costly – Transitioning older systems to a serverless architecture may require extensive redesigns, negating potential savings.
Fidelis can help you navigate the complexities of serverless computing and identify the best strategy for your organization. Schedule your free consultation with us to get started.
