Serverless computing isn’t brand new, it’s the next logical step in a cloud evolution that’s been reshaping software development for over two decades. By abstracting away infrastructure management, serverless lets developers focus entirely on building applications, not managing servers. It’s not magic, its efficiency, agility, and scalability rolled into one. But as adoption grows across industries, so do the lessons learned. In this article, we’ll break down the real-world benefits, explore why modern teams are embracing serverless, and highlight key considerations before making the switch, drawing from recent use cases.

Serverless Computing 101

What Is It?

Serverless computing is a modern approach to application development where developers create and run code without having to manage servers or backend infrastructure themselves. Contrary to what the name suggests, servers do exist, but they are fully managed by cloud service providers (CSPs). This means that developers never need to interact with the underlying infrastructure. Instead, they are able to focus entirely on writing efficient front-end code and core business logic, deploying it to containers controlled by the CSP.

Everything else, from provisioning and scaling infrastructure to handling updates, patches, security, and performance monitoring, is managed automatically by the cloud provider. Serverless has quickly joined the ranks of other essential cloud offerings like infrastructure as a service (IaaS), platform as a service (PaaS), function as a service (FaaS) and software as a service (SaaS). Leading platforms such as AWS Lambda, Azure Functions, Google Cloud Functions, and IBM Cloud Code Engine are all examples of this model in action. According to SkyQuest Technology, the global serverless computing architecture market, valued at USD 10.6 billion in 2023, is projected to grow to over USD 70 billion by 2032, at an impressive CAGR of 23.5% between 2025 and 2032.

How Does It Help Developers?

Serverless computing enables developers to focus on business logic by abstracting the complities of infrastructure management. This allows teams to concentrate on coding and optimizing application functions, rather than worrying about provisioning, scaling, and maintaining servers. It empowers developers to build and refine the core functionality of their applications. Since the cloud provider manages the infrastructure, handling provisioning, scaling, and maintenance, there’s no need for Infrastructure as a Service (IaaS) or boilerplate code related to server setup. This streamlined model simplifies development workflows, reduces operational overhead, and enables rapid deployment. As a result, teams iterate faster, innovate more freely, and boost overall productivity by dedicating their time and energy to delivering value through code rather than managing servers.

Cons of Serverless Computing

Serverless computing offers individual developers and enterprise development teams many technical and business benefits:

• Improved developer productivity: As noted, serverless enables development teams to focus on writing code, not managing infrastructure. It gives developers more time to innovate and optimize their front-end application functions and business logic.
• Pay for execution only: The meter starts when the request is made and ends when execution finishes. Compare this to the IaaS compute model, where customers pay for the physical servers, VMs and other resources required to run applications, from when they provision those resources until they explicitly decommission them.
• Streamlined development or DevOps cycles: Serverless simplifies deployment and, in a larger sense, simplifies DevOps because developers don’t spend time defining the infrastructure required to integrate, test, deliver and deploy code builds into production.
• Reduce latency: In a serverless environment, code runs closer to the end user, decreasing latency.
• Develop in any language: Serverless is a polyglot environment that enables developers to code in any language or framework (Java, Python, JavaScript, node.js) that they’re comfortable with.
• Cost-effective performance: For specific workloads (for example, embarrassingly parallel processing, stream processing, specific data processing tasks), serverless computing is both faster and more cost-effective than other forms of computing.
• Usage visibility: Serverless platforms provide near-total visibility into system and user times and aggregate usage information systematically.

Benefits of Serverless Computing

On the other hand, while serverless has many advantages, it’s essential to consider some shortcomings:

• Slow startup: Also known as “cold start,” slow startup affects the performance and responsiveness of serverless applications, particularly in real-time demand environments.
• Complex testing and debugging: Debugging becomes more complicated with a serverless computing model as developers lack visibility into back-end processes.
• Less control: In a serverless setting, an organization hands server control over to a third-party CSP, thus relinquishing the management of hardware and execution environments.
• Vendor lock-in: Each service provider offers unique serverless capabilities and features that are incompatible with other vendors.
• Higher cost for running long applications: Serverless execution models are not designed to execute code for extended periods. Therefore, long-running processes costs more than traditional dedicated server or VM environments.

Why Serverless Matters: Real-World Impact and Enterprise Advantages

With the growth of cloud computing, individuals need to use and store data differently than they did in the past. To accomplish this, enterprises are relying more than ever on cloud functions and reducing their dependence on on-premises infrastructure.

Businesses are discovering more ways to create value with serverless solutions, leading to a rapid expansion of its real-world applications. For instance, in AI and machine learning, especially with the rise of generative AI, serverless enables real-time, event-driven decision-making and removes infrastructure complexity from the model training process. In hybrid cloud environments that blend public, private, and edge infrastructure, serverless provides the flexibility to adapt to varying workloads without added friction. Similarly, big data analytics teams benefit from serverless platforms that enable real-time processing and dynamic pipelines without the need to manage underlying systems.

For companies using chatbots, serverless supports high availability and responsiveness with a cost model that charges only for usage, making it ideal for conversational AI. In the Internet of Things (IoT), serverless helps process vast amounts of event-driven data from widely distributed devices with ease and automation. All these examples point to a clear trend: serverless computing is not just a technological shift, but a foundational enabler of modern, scalable, and responsive digital systems. As the demand for real-time insights and agile development grows, the future of serverless computing is becoming an essential piece of the enterprise tech landscape.

Real Case Example: The smart vending machines by Coca-Cola

Rainmaker Games is a dynamic discovery and community platform that allows gamers to explore, discuss, and invest in a wide array of games and NFTs. Acting as both an interactive catalog and a social hub, Rainmaker enables users to browse new releases, read curated blog content, and even submit their own games and NFTs for inclusion. To support this rapidly growing ecosystem, Rainmaker embraced a fully serverless architecture in 2022, running on CockroachDB Serverless alongside NodeJS and Prisma. This stack eliminates the need for traditional infrastructure management, no servers to provision, no installations, and no replication configurations, allowing the development team to move faster and scale effortlessly.

By removing the operational overhead of cluster maintenance and database scaling, Rainmaker stays laser-focused on building a seamless, scalable experience that empowers gamers to discover and engage with content more intelligently and efficiently. Since their transition, CockroachDB Serverless has introduced enhancements such as multi-region support, a 99.99% uptime SLA, and integrations with tools like Terraform, further bolstering Rainmaker’s ability to deliver a resilient and globally accessible platform.

Key Considerations when Switching to Serverless

Serverless computing opens the door to a more agile, cost-efficient, and scalable way of building applications, and its future looks brighter than ever. As organizations move toward this powerful model, it’s important to approach the transition with a clear understanding of its technical nuances. For instance, since serverless functions are typically accessed through private APIs, setting up an API gateway becomes essential.

Projects that rely heavily on third-party libraries or external dependencies will also need to bundle those into the application package. Additionally, serverless platforms enforce timeout limits, which means that long-running or highly variable processes require alternative approaches or architectural adjustments. Teams ought to carefully evaluate legacy applications with constant computing needs to maintain cost efficiency. Still, these considerations are far from setbacks; they’re simply part of the learning curve. With the rapid evolution of cloud services and growing enterprise adoption, serverless capabilities are only becoming more powerful, unlocking new opportunities for innovation and growth.

In a world where a dozen demands pull developers, managing infrastructure, scaling systems, and fixing what breaks; serverless computing offers them a welcome shift. It removes much of the heavy lifting behind the scenes, so teams do what they love most: building, innovating, and delivering value faster.

At Redstream, we don’t just fill roles, we connect innovative companies with developers ready to drive what’s next. Whether you’re exploring the latest in cloud, serverless, or scalable architecture, we’re here to match you with opportunities where your skills make an impact.

Ready to shape the future of tech? Apply today or reach out to find your next project.

About RedStream Technology

RedStream Technology is a premier provider of technical, digital, and creative staffing, specializing in delivering tailored solutions that meet the specific needs of our clients. With a keen focus on quality and efficiency, RedStream offers a range of services from contract staffing to permanent placements in various IT, Digital and Creative specialties. Our team of experienced professionals is committed to providing innovative staffing solutions to our clients and finding the right fit for our candidate’s long-term goals. RedStream Technology is dedicated to increasing client productivity while helping technology, digital, and creative professionals navigate their ever-changing needs and career path. For more information, visit www.redstreamtechnology.com.