Serverless computing: Outsourcing server management

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  Quantumrun Foresight
• November 3, 2023

Insight summary

Serverless computing, an extension of cloud computing, absolves developers from managing physical infrastructures, delegating server management to third-party providers. This model, epitomized by Function-as-a-Service (FaaS), activates code in response to events, billing per request, thus optimizing costs as payment aligns with computing time used. Besides cost-efficiency, serverless computing accelerates deployment and is scalable, catering to varying company sizes and IT capabilities. Looking ahead, serverless computing could evolve with AI integration for optimized utilization, fostering collaborations with cybersecurity firms, and potentially reshaping software developer training, focusing more on complex coding projects rather than server management.

Serverless computing context

Serverless computing relies on third-party providers to manage servers. A cloud provider dynamically allocates computing resources and storage only as needed to execute a given piece of code, then charges the user for them. This method makes software development easier, faster, and more cost-effective because companies only pay for their computing time. Developers no longer have to worry about managing and patching a host or dealing with operating systems. Several products and services fall under serverless computing but the most popular is Function-as-a-Service (FaaS), where developers write code that is executed in response to events, like an urgent update. 

Function-based services are billed per request, meaning the code is only called when a request is made. Instead of paying a fixed monthly fee to maintain a real or virtual server, the FaaS provider charges based on how much computing time the function uses. These functions may be linked together to form a processing pipeline or used as part of a larger application’s functionality by interacting with other code running in containers or on traditional servers. Aside from containers, serverless computing is often used with Kubernetes (an open-source system for deployment automation). Some of the more well-known serverless service vendors are Amazon’s Lambda, Azure Functions, and Google Cloud Function

Disruptive impact

One of the biggest benefits of serverless computing is its ease of use. Developers simply write code and deploy it without worrying about servers or management. For example, a firm has an app that is idle for much of the time but must handle many event requests under specific situations. Some applications also process data supplied by the Internet of Things (IoT) devices with erratic or limited Internet access. In both conditions, conventional methods would have required a big server to manage peak performance—but this server would be mostly unused. With serverless architecture, companies will only pay for actual resources utilized. This method scales automatically, making the service economical for companies of all sizes and IT capabilities.

However, there are some limitations to serverless computing. One is that it can be difficult to debug code since errors can be hard to track down. Another is that companies rely on third-party providers, which can be a risk if those vendors experience downtime or are hacked. In addition, most FaaS providers will only allow code to execute for a few minutes, making the service unsuitable for long-term tasks. Nonetheless, serverless computing remains a promising development in cloud technologies. Some providers like Amazon Web Services (AWS) even allow companies to run code offline if they don’t want to avail of serverless infrastructure for specific projects.

Implications of serverless computing

Wider implications of serverless computing may include: 

• Serverless providers integrating artificial intelligence (AI) into FaaS to optimize utilization while keeping costs low for companies. This strategy can attract more business opportunities.


• Microprocessor manufacturers catching up to the computing needs of serverless infrastructure by developing faster processors.


• Cybersecurity firms partnering with serverless providers to create solutions specific to cyber infrastructure attacks.


• Future software developers no longer being required to train and understand server management, which can free up their time for more complex coding projects.


• Software deployment and updates becoming faster and the processes involved simplified.

Questions to comment on

• If you’re a developer, have you tried serverless computing? If yes, how did it change the way you work?


• What are the other potential benefits of being able to focus on coding instead of its infrastructures?