Going serverless: A guide for businesses

By Max Ikaheimo

17th April, 2023

Serverless architecture is a cutting-edge cloud computing approach that allows organizations to create and run applications without managing the underlying server infrastructure.

This enables businesses to concentrate on application development and services, scaling resources automatically based on demand. As a result, serverless architecture provides a more agile and cost-effective way to deploy and manage software solutions.

In today's fast-paced digital landscape, C-suite executives and decision-makers must grasp the potential of serverless architecture. 

By leveraging serverless computing benefits, organizations can foster innovation, reduce operational expenses, and enhance the overall efficiency of their IT infrastructure. In addition, a solid understanding of serverless architecture empowers leaders to make informed decisions regarding adopting and implementing this technology, setting their businesses up for sustained success in an increasingly competitive market.

In this post:

What is serverless architecture?

Serverless architecture is a cloud computing model that allows developers to build and deploy applications without managing the underlying infrastructure. In the serverless model, cloud service providers dynamically allocate resources and automatically scale them based on demand. 

To learn more about serverless, let’s take a closer look at some of the key concepts behind it:

• Functions as a Service (FaaS): FaaS is a crucial component of serverless architecture, providing a platform for developers to deploy individual functions or pieces of code that execute in response to specific events or triggers. These functions run in stateless containers, instantiated only when needed, and terminated after execution. This approach allows for automatic scaling and efficient resource utilization based on demand, without manual intervention.

• Backend as a Service (BaaS): BaaS refers to third-party services that provide ready-made backend functionality for applications, such as databases, authentication, file storage, and messaging. By leveraging BaaS, developers can offload the management of these services to the cloud provider, allowing them to focus on building the frontend and business logic of their applications.

• Event-driven processing: Serverless architecture relies on an event-driven model, where functions are executed in response to events or triggers, such as HTTP requests, changes in data, or messages from other services. This approach enables efficient resource allocation, as functions are executed only when needed, and allows for easy integration with various services within the cloud ecosystem.

• Stateless and ephemeral compute: In serverless architecture, functions are designed to be stateless, meaning they don't store any information about previous invocations. This allows for greater scalability, as functions can be executed concurrently without sharing resources or synchronization. Additionally, the compute resources used to run these functions are temporary, meaning they are created when needed and terminated after execution, optimizing resource usage and minimizing costs.

• Auto-scaling and cost optimization: Serverless architecture automatically scales resources based on demand, eliminating the need to pre-allocate or estimate infrastructure requirements. This results in cost optimization, as organizations pay only for the actual compute resources used during function execution rather than reserving resources in advance.

Don't forget we offer serverless implementation services.

Serverless architecture vs traditional server

Benefits and drawbacks

Benefits

• Cost savings: Serverless architecture's pay-as-you-go pricing model means organizations only pay for the compute resources they actually use, which can lead to significant cost savings, especially for applications with variable or unpredictable workloads.

• Reduced operational overhead: By offloading infrastructure management to cloud providers, serverless architecture frees up developers' time and resources, allowing them to focus on building features and delivering value to the business.

• Improved scalability: Serverless architecture automatically scales resources based on demand, enabling applications to handle varying workloads without manual intervention, which can help businesses accommodate fluctuations in usage and growth.

• Faster time to market: With simplified deployment and reduced infrastructure management, serverless architecture allows developers to bring applications and features to market more quickly, giving businesses a competitive advantage.

• Simplified application development: Serverless architecture enables developers to focus on writing code and implementing business logic, rather than managing infrastructure, which can streamline the development process and improve overall efficiency.

Drawbacks

• Vendor lock-in: With serverless architecture, organizations may become heavily reliant on a single cloud provider's services and offerings, making it difficult to switch providers or move to a multi-cloud approach.

• Latency concerns: Due to the nature of serverless functions, which are instantiated on-demand, there may be increased latency for function initialization, which could impact performance for certain applications, particularly those with strict response time requirements.

• Limitations in customization: Serverless architecture often comes with limitations in terms of available programming languages, runtimes, and memory allocation, which could restrict customization options for some applications.

• Monitoring and debugging challenges: Traditional monitoring and debugging tools may not be well-suited for serverless architecture, requiring organizations to adopt new techniques and tools specifically designed for serverless environments.

Popular serverless providers

AWS Lambda

Amazon Web Services (AWS) Lambda is one of the most popular serverless computing platforms, providing a fully managed FaaS environment. It allows developers to run code in response to specific events, such as changes in data, HTTP requests, or messages from other AWS services. Lambda supports a variety of programming languages and integrates seamlessly with other AWS services.

Google Cloud Functions

Google Cloud Functions is a serverless execution environment that Google Cloud Platform (GCP) provides. It enables developers to create and deploy functions that respond to events from various Google Cloud services, such as Cloud Storage, Pub/Sub, and Firebase. In addition, Google Cloud Functions supports multiple programming languages and offers a simple, cost-effective pricing model.

Microsoft Azure Functions

Azure Functions is a serverless computing platform provided by Microsoft Azure. It supports a wide range of programming languages. It allows developers to build and deploy functions that execute in response to events from Azure services, third-party services, or on-premises systems. Azure Functions provides a flexible, scalable environment and offers various pricing options, including a pay-as-you-go model.

IBM Cloud Functions

Based on the open-source Apache OpenWhisk project, IBM Cloud Functions is a serverless computing platform offered by IBM Cloud. It enables developers to build and deploy functions that respond to events from various sources, including IBM Cloud services, third-party APIs, and web applications. In addition, IBM Cloud Functions supports several programming languages and offers a straightforward pricing model.

Vercel

Vercel is a serverless platform focusing on frontend development and deployment, offering seamless integration with popular frontend frameworks such as Next.js, Gatsby, and Nuxt.js. In addition, Vercel provides automatic scaling, global deployment, and a simplified development experience, making it an attractive option for frontend developers and teams.

Netlify

Netlify is a serverless platform that specializes in web development and deployment. It offers a suite of tools and features that simplify the process of building, deploying, and managing static and dynamic web applications. In addition, Netlify provides automatic scaling, a global CDN, and various integrations, making it a popular choice for web developers and businesses.

We are Netlify and Vercel specialists. While every serverless platform on the list is great, we believe Vercel and Netlify align better with the needs of most businesses and brands.

Use cases for serverless architecture

Real-time data processing

Serverless architecture is well-suited for real-time data processing tasks like stream processing, data transformation, and analytics. New data arrival can trigger functions, allowing for immediate processing and analysis. This enables organizations to gain insights and make data-driven decisions in real-time. Examples include log processing, real-time recommendations, and fraud detection.

Web applications and APIs

Serverless architecture can build and deploy web applications and APIs quickly and efficiently. By leveraging FaaS and BaaS components, developers can create scalable, cost-effective applications that respond to user requests without the need to manage the underlying infrastructure. This approach is handy for applications with variable or unpredictable workloads, as serverless platforms automatically scale resources based on demand. Examples include e-commerce websites, content management systems, and RESTful APIs.

Automation and microservices

Serverless architecture is an excellent fit for automating tasks and orchestrating microservices. Functions can be triggered by specific events or scheduled to run at predetermined intervals, automating routine tasks such as data backups, report generation, or resource cleanup. Additionally, serverless architecture supports the development of microservices, where each function performs a specific task and communicates with other functions via APIs or messaging systems. This approach promotes modularity, scalability, and maintainability in applications. Examples include order processing pipelines, data ingestion workflows, and notification systems.

Internet of Things (IoT)

The event-driven nature and scalability of serverless architecture make it an ideal choice for IoT applications. IoT devices generate a large volume of data and events, which can be processed efficiently using serverless functions. Functions can be triggered by events such as sensor readings or device status updates, allowing for real-time data processing, aggregation, and analysis. Additionally, serverless platforms can handle the high concurrency and variable workloads common in IoT applications. Examples include smart home automation, remote monitoring, and predictive maintenance.

We helped UJET, the world's most advanced cloud contact center, implement serverless architecture. Read all about this exciting case study.

The steps to implement serverless architecture in business

Assess current infrastructure and identify opportunities

To successfully implement serverless architecture in your business, evaluate your current infrastructure, applications, and processes. Next, identify areas where serverless architecture can benefit, such as cost savings, improved scalability, or reduced operational overhead. Look for specific use cases or workloads that can benefit from serverless, including real-time data processing, web applications, automation, or IoT applications.

Select an implementation agency to help you out

Your implementation partner You should have a deep understanding of your business needs and be able to provide a customized solution that meets your requirements. Look for a partner who takes the time to understand your business processes and challenges before recommending a solution. Look for a partner with experience in serverless architecture and a team of experts who can help you with your project. Check their portfolio to see if they have worked on similar projects in the past and if they have a good track record.

Choose the right provider and framework

Selecting the right serverless provider and framework is crucial for a successful implementation. First, evaluate the offerings of popular providers like AWS Lambda, Google Cloud Functions, Microsoft Azure Functions, IBM Cloud Functions, Vercel, and Netlify. Consider factors such as supported programming languages, integrations, scalability, pricing models, and potential vendor lock-in. Choose a framework that aligns with your technology stack and team's expertise to simplify development and deployment.

Develop a migration plan

Once you've identified opportunities for serverless architecture and chosen a provider and framework, develop a migration plan that outlines the steps needed to transition your applications and infrastructure. This may involve refactoring existing applications, building new serverless functions, or gradually moving functionality from traditional infrastructure to serverless. Ensure your plan addresses potential challenges such as data migration, security, and monitoring. Finally, engage stakeholders across your organization to ensure a smooth and successful migration.

Monitor and optimize serverless functions

After implementing serverless architecture, monitoring and optimizing your serverless functions is essential to ensure optimal performance, efficiency, and cost management. Utilize monitoring tools designed explicitly for serverless environments to gain insights into function performance, resource usage, and potential bottlenecks. Then, continuously optimize your functions by refining code, adjusting resource allocation, and implementing best practices for serverless development. This will help you maximize the benefits of serverless architecture and ensure a positive impact on your business.

Staying secure and compliant

The shared responsibility model still applies in serverless architectures, with some specific nuances related to the serverless environment.

• Cloud service provider responsibilities: The CSP manages the serverless infrastructure, ensuring its availability, scalability, and security. This includes working the underlying compute resources, network, storage, and platform-level security features.

• Customer responsibilities: Customers are responsible for securing their serverless applications and the data they handle. This includes designing secure application logic, managing access controls, and ensuring data privacy and compliance.

Ensuring data privacy and regulatory compliance in serverless architecture

• Data Classification: Classify sensitive data within serverless applications to ensure appropriate data handling and protection measures are in place.

• Data Protection: Implement encryption for data at rest and in transit. Leverage serverless-specific encryption and key management services provided by the CSP.

• Access Control: Implement role-based access control (RBAC) and apply the principle of least privilege to limit access to serverless functions and associated data.

• Compliance Audits: Conduct regular audits to ensure serverless applications comply with relevant regulations and internal policies.

• Incident Response Plan: Develop an incident response plan tailored to the serverless environment, including identifying potential risks, establishing notification procedures, and outlining response actions.

Securing serverless applications

• Function-Level Security: Apply the principle of least privilege to serverless functions, granting only the required permissions for the specific task.

• Input Validation: Validate and sanitize user input to protect serverless applications from attacks such as SQL injection, cross-site scripting (XSS), and remote code execution (RCE).

• Dependency Management: Regularly update dependencies in serverless applications to address security vulnerabilities and maintain compatibility.

• Logging and Monitoring: Implement serverless-specific logging and monitoring solutions to detect and respond to potential security threats in real-time.

• Secure Secrets Management: Use a secure secrets management service to store and manage sensitive information like API keys, database credentials, and encryption keys within serverless applications.

• API Gateway Security: Utilize API gateways to secure serverless functions by implementing authentication, authorization, and rate limiting.

Closing thoughts

As a business owner, you always look for ways to optimize your operations, improve efficiency, and reduce costs. Serverless architecture is a game-changer in this regard. By leveraging serverless computing, you can take advantage of several benefits, such as cost savings, scalability, flexibility, faster time-to-market, and enhanced security.

While some challenges exist, such as cold start times and vendor lock-in, the benefits outweigh the risks. For example, you can use serverless architecture for web and mobile applications, IoT devices, big data processing, and chatbots.

Serverless architecture is set to revolutionize the industry. It is a flexible, scalable, and cost-effective solution for businesses of all sizes.

With serverless architecture, you can focus on your core business functions and leave the server management to experts. So, embrace the future and consider implementing serverless architecture in your business operations.