What is serverless computing?

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Published: 2026-09-02T06:11:02.743Z • Permanent link

Serverless computing has its roots in the early 2010s, when Amazon Web Services (AWS) introduced the concept of serverless architecture through its Lambda function. This innovation allowed developers to write and execute code without worrying about the underlying infrastructure, as AWS handled the provisioning, scaling, and management of the resources. However, it was IBM who popularized the term "serverless computing" in 2018, defining it as a cloud computing model where the cloud provider is responsible for managing the infrastructure and resources, and the user only pays for what they use.

IBM's definition was further solidified through its Cloud Foundry platform, which introduced a serverless architecture called "Cloud Foundry Serverless" in 2019. This platform allowed developers to write and deploy applications without worrying about the underlying infrastructure, and IBM handled the provisioning, scaling, and management of the resources. Since then, serverless computing has gained significant traction, with major cloud providers such as Microsoft Azure, Google Cloud Platform, and Oracle Cloud Infrastructure also introducing their own serverless offerings.

The emergence of serverless computing has been driven by the increasing demand for scalable and cost-effective cloud infrastructure. With the rise of Big Data, IoT, and real-time analytics, companies are looking for ways to process and analyze vast amounts of data without breaking the bank. Serverless computing has been touted as a solution to this problem, as it allows developers to write and execute code without worrying about the underlying infrastructure, and the cloud provider handles the provisioning, scaling, and management of the resources.

Serverless computing has significant implications for the Cloud Infrastructure domain, particularly for companies that rely on scalable and cost-effective cloud infrastructure. Companies such as Netflix, Airbnb, and Uber have already adopted serverless computing to power their applications, and it is expected that many more will follow suit. According to a report by MarketsandMarkets, the serverless computing market is expected to grow from $1.4 billion in 2020 to $6.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 51.4%. This growth is driven by the increasing demand for scalable and cost-effective cloud infrastructure, as well as the need for companies to process and analyze vast amounts of data.

The adoption of serverless computing also has significant implications for research communities and markets. For example, researchers at universities and research institutions are using serverless computing to analyze large datasets and develop new machine learning models. According to a report by ResearchGate, the number of serverless computing research papers published in 2020 increased by 300%, highlighting the growing interest in this area. Additionally, serverless computing has significant implications for policy environments, particularly in terms of data privacy and security. As serverless computing becomes more widespread, companies will need to ensure that they are complying with relevant regulations and laws, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

The emergence of serverless computing is part of a larger trend towards cloudification and digital transformation. According to a report by Gartner, the cloud infrastructure market is expected to grow from $281 billion in 2020 to $624 billion by 2025, at a CAGR of 10.3%. This growth is driven by the increasing demand for scalable and cost-effective cloud infrastructure, as well as the need for companies to process and analyze vast amounts of data. Serverless computing is just one aspect of this trend, and it is closely related to other emerging technologies such as containerization and edge computing.