What Is Serverless Computing? How It Works, Benefits, and ..

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-22T12:10:42.630Z • Permanent link

Amazon Web Services (AWS) is often credited with pioneering serverless computing, but the concept has been around for several years, with Microsoft Azure and Google Cloud Platform also exploring similar approaches. In 2013, AWS launched its Lambda service, which allowed developers to run code without provisioning or managing servers. However, it wasn't until 2016 that AWS introduced the term "serverless" and began to aggressively promote its cloud-based platform as the future of computing.

Google Cloud Platform responded by launching Cloud Functions in 2017, which provided a more comprehensive serverless platform. Microsoft Azure followed suit with Azure Functions in 2017, and more recently, it has been investing heavily in its serverless capabilities. The serverless computing market is expected to reach $6.8 billion by 2025, growing at a CAGR of 33.5%. Companies like Netflix and Spotify are already adopting serverless computing to reduce costs and improve scalability.

Despite the growing adoption of serverless computing, many experts argue that the technology is still in its infancy. Serverless computing requires significant changes to how developers think about code, scalability, and security. Moreover, the lack of control over underlying infrastructure can be a major concern for organizations that require high levels of customization and control.

Serverless computing has significant implications for the Cloud Infrastructure domain, particularly for companies that rely heavily on cloud-based services. For example, Netflix has reportedly saved millions of dollars by switching to serverless computing, which allows it to scale its infrastructure on demand. Similarly, companies like Airbnb and Uber are using serverless computing to power their real-time applications, which require high levels of scalability and performance.

However, serverless computing also raises concerns about security and compliance. Many organizations are hesitant to adopt serverless computing due to concerns about data privacy and security. Moreover, the lack of control over underlying infrastructure can make it difficult for organizations to meet regulatory requirements. Research communities are also exploring the use of serverless computing to improve security and compliance, but more work is needed to address these concerns.

Serverless computing is part of a larger trend towards cloud-first and platform-agnostic architectures. The rise of containerization and serverless computing reflects a shift away from traditional monolithic architectures and towards more flexible and scalable approaches. This trend is also driven by the increasing demand for real-time analytics and machine learning, which require high levels of scalability and performance.