Is Implementing Serverless the Key to Boosting Mid-Market Companies' ROI by 50%?

Boost Mid-Market ROI by 50% with Serverless
Amit Founder & COO cisin.com
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Developers can focus on writing code without being distracted by managing servers, so faster and cheaper app deployment is possible with serverless architecture.

By eliminating server management as part of app development processes, complexity levels decrease significantly during software creation processes.

Serverless apps enable developers to focus on developing code. At the same time, third-party service providers manage servers, freeing them from managing time-consuming server maintenance tasks so they can focus on building applications instead.

This article provides an introduction to serverless architecture so you can understand its benefits for business operations.


What Is Serverless Architecture (SLA)?

What Is Serverless Architecture (SLA)?

 

The serverless approach is an architectural paradigm that allows developers to easily design services without worrying about infrastructure management.

Cloud providers can supply servers so developers can use databases, apps, and storage systems. In this article, we'll go through its benefits and drawbacks and the tools you'll need to move serverless forward.


How Serverless Architecture Work?

How Serverless Architecture Work?

 

Servers allow users to interact with applications and gain access to business logic, but managing them takes incredible effort and time.

Teams must maintain server hardware and software updates, ensure safety measures are in place, and make backup plans if something breaks. Luckily, developers can delegate some or all of these duties by adopting serverless architecture so they can focus on writing application code rather than maintaining servers themselves.

Function as a Service (FaaS) is one of the more widely employed serverless architectures where developers create processes.

Each part performs specific tasks when activated by events like HTTP requests or emails. Developers then deploy these triggers and functions onto cloud providers after proper testing rounds - each cloud provider executes these functions either on already running servers or creates brand new servers as necessary - all done without impacting coders directly - their focus remains solely on writing code and deployment!

Amazon launched AWS Lambda as the inaugural mainstream FaaS platform. Serverless architecture has existed for several decades; AWS Lambda remains the go-to choice for building serverless apps; Google Cloud Functions and Microsoft Azure Functions may also provide options.


Basic Concepts of Serverless Architecture

Basic Concepts of Serverless Architecture

 

Even though serverless architecture eliminates the need to manage servers, its learning curve remains steep, particularly if you combine multiple functions into complex workflows within an app.

You could benefit from familiarizing yourself with key terms associated with it, such as these.

Invocation

A single function execution.

Duration

The time it takes to perform a serverless operation.

Cold Start

Latency is the time that passes when a feature or function is activated for the first time after inactivity.

Limit on Concurrency

Cloud providers limit the number of instances per region a function can run at once. If this limit is exceeded, a part may be throttled.

Timeout

A cloud provider's tolerance for a given function before it is terminated. The majority of cloud providers have a timeout default and maximum.

The list below defines the fundamental concepts. However, each cloud provider will use a different term and may have unique limitations on the serverless function.

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Container Architecture and Serverless Architecture

Container Architecture and Serverless Architecture

 

Serverless and container-based architectures allow developers to abstract away host environments; however, each architecture type presents unique differences for developers.

Developers who utilize container architecture must update and manage every container themselves, while serverless apps using serverless technology scale automatically without an orchestration tool such as Kubernetes being required for maintenance purposes.

Containers provide developers with control of the operating system, runtime environment, and environment - ideal for high-traffic apps or as an initial step toward cloud migration.

On the other hand, serverless functions offer better-triggered events, like payments.


Serverless Architecture: Benefits And Challenges

Serverless Architecture: Benefits And Challenges

 

There has recently been an upsurge in serverless architecture use; nearly 40% of businesses worldwide utilize serverless architectures today for various services ranging from startups to large corporate applications.

These technologies offer several distinct benefits that appeal to different business types - providing businesses of various kinds with greater agility for an array of activities that span across industries and geographies.

  1. Cost
  2. Cloud providers bill you per request, so you don't pay for servers or virtual machines that aren't used.
  3. Scalability
  4. Within the concurrency limit, function instances can be automatically added or deleted in response to changes in traffic.
  5. Productivity
  6. Serverless allows engineers to deploy code directly without managing servers. This helps speed up delivery cycles and scale operations quickly.

Serverless architectures also pose some challenges.

Loss Of Control Html0

You don't have control of the software that runs your code in serverless environments. You depend on a cloud service provider to resolve any issues arising from a server failure, data center outage, or another problem.

Security

Cloud providers may simultaneously run the code of several customers. Your application data may be exposed if the server shared is not configured correctly.

Performance Effect

In serverless environments, cold starts are joint.

They add several seconds to the execution of code when functions are called after an inactivity period.

Testing

In a serverless system, developers can perform unit tests of function code. However, integration tests evaluating the interaction between front and rear-end components are more complicated.

Vendor Lock-In

AWS and other large cloud providers offer various services, such as messaging queues, databases, APIs, etc., that you can combine to create serverless apps.

While it is possible to combine elements from multiple vendors, the services of a single vendor are more likely to work together.

Serverless is an ideal option for companies that wish to decrease time-to-market and build lightweight and scalable apps quickly and cost-efficiently.

Virtual machines or containers may be better for handling long-running continuous processes in your app; developers might opt to use virtual machines and containers primarily while delegating shorter tasks, like database storage needs, onto serverless functions.


You Can Use Serverless Architecture In Many Different Ways

You Can Use Serverless Architecture In Many Different Ways

 

The best use cases for serverless are short-lived and unpredictable workloads. Serverless is primarily used for:

Trigger-Based Tasks

Serverless architecture is suitable for any user action that can trigger an event. A user signing up for your website could trigger a change in the database, which may trigger an email.

A series of serverless functions can handle the backend.

Building Restful APIs

Amazon API Gateway's serverless functions can create RESTful APIs that scale up with the demand.

Asynchronous Processing

The serverless function can perform behind-the-scenes tasks such as transcoding video after upload or rendering product information without adding latency to the user interface.

Security Check

When you start a new instance, a function that scans the container for vulnerabilities or misconfigurations can be called.

You can use functions to verify SSH and perform two-factor authentication.

Continuous Integration (CI)

The serverless architecture will automate a lot of your pipeline's stages. For example, code commits can trigger a build, while pull requests start automated testing.

Serverless is usually implemented in phases by developers. They gradually migrate some portions of the application and leave others on servers.

You can easily add new functions to serverless architectures as you see fit.


Serverless Architecture Tools

Serverless Architecture Tools

 

By employing the appropriate tools, your applications will perform more optimally for users.

Serverless Framework, Amazon's Serverless Application Model, and serverless security tools all facilitate API interaction between cloud providers and you, allowing the creation and management of functions, triggers, and permissions that correspond with tasks from Amazon Web Services or another cloud providerβ€”once created locally before deployment is allowed.

AWS also offers serverless tools which let users test locally before deploying their apps. In contrast, serverless security tools scan for vulnerabilities and block code injection or executable files to protect serverless apps against code injection or executable attacks.

Once your application has been developed, its health and performance must be regularly assessed. Serverless functions often experience cold starts, misconfigurations, and errors that impact their entire environments; to stay ahead of these problems, it is vital that real-time monitoring of all functional interactions takes place - including their interactions among themselves as well as with infrastructure components.

Datadog Serverless Monitoring offers comprehensive serverless application monitoring that goes beyond virtual machines and containers, whether the app runs completely serverless (without virtualization and containers).

With its real-time performance tracking of functions, infrastructure, applications, and collections, along with metrics logging for every callback invocation - Datadog makes serverless architecture monitoring quick and pain-free! Compatible with multiple languages & deployment frameworks, so your monitoring project will start in minutes!

Read More: Why Should I Choose Serverless Architecture For Mobile App Development?


Use Cases In The Real World Of Serverless Architecture

Use Cases In The Real World Of Serverless Architecture

 

To truly grasp the capabilities of serverless technology, one needs to understand its impact across different fields and sectors.

Take a closer look.


Netflix

Netflix media encoding has become fully automated thanks to AWS Lambda event-triggered automation.

Serverless architecture makes publishing content an effortless process. Every day, media giant Netflix receives hundreds of files that must be encoded and sorted before being delivered to users.

AWS Firebase pushes an Event when files have been uploaded to S3 to call Lambda Function; video segments are divided into 5-minute segments, encoded for 60 streams; then, using rules and events, aggregated video parts are aggregated into an overall video product.

Lambda can also detect users and prevent unauthorized access via continuous file validation that helps Netflix identify when there is an issue with their files.


Nordstrom

Washington's iconic department store has always been at the cutting edge of retail innovation. Hello, Retail is an open-source serverless architecture store that uses event-driven technology instead of data-intensive apps to operate efficiently.

Nordstrom uses this app to demonstrate their use of Kinesis and other AWS Services, specifically distributed ledger technology such as Ethereum.

All serverless components make up this event-driven distributed ledger application.


Coca Cola

Coca-Cola, one of the world's largest soft drink manufacturers, first tested serverless technology in their vending machines before moving forward with it as an integral component of their business plan.


How does serverless vending work?

As part of its payment structure, when purchasing drinks, it initiates an AWS lambda function to communicate with headquarters regarding marketing and inventory requirements.

Paying only for what consumers request rather than running at maximum capacity gives a more accurate picture of consumer desires.


Zalora

Zalora fashion shops rely heavily on serverless technology to serve more than 20 million customers monthly.

AWS helps the chain ensure every customer enjoys an outstanding shopping experience on their website, using Lambda capabilities with AWS to scale without encountering issues when increasing demand.


Few More Examples Of Real-World Serverless Architecture

Many companies are now using serverless architecture to create serverless applications. Some of the most popular serverless apps include:

  1. Netflix: Netflix has a serverless model, which means it uses a cloud service provider for its infrastructure and servers. Developers focus less on code execution and servers and more on code that allows them to provide better user experiences.
  2. Slack: slack bots can be supported by serverless architectural models, which allows them to perform a wide range of tasks with increased capacity.
  3. Uber This popular ride-sharing service uses serverless technology as part of the pricing algorithm. It adjusts fares according to demand.

Serverless Application Architecture

We have now established that the serverless model isn't entirely serverless. Let us examine its essential components for developing cloud-based applications.

  1. FaaS Solution -It's one of the critical elements in serverless computing architecture. They allow developers to create, maintain, and deploy applications without worrying about server infrastructure.
  2. Security Token Service -Servless users login to the system using the APIs provided by providers. The serverless architecture must be configured to create a security key for each user before triggering API access.
  3. Database -Even though the application is developed on a serverless architecture, its data must still be in a database. A robust database is a vital part of any architecture.

Serverless Architecture: The Mid-Market Companies Benefits

Serverless Architecture: The Mid-Market Companies Benefits

 

Partnering with cloud computing service providers for serverless architecture integration has various benefits. In this section, we will dive deeper into these advantages.


Reduction In Costs

Human resource and infrastructure costs are critical considerations of any software project, and serverless architecture's pay-as-you-go model offers one way of drastically cutting infrastructure expenses.

Imagine that your website only attracts 1,000 unique visitors; switching to pay-as-you-go mode could reduce backend maintenance and resource costs by 91%.

Instead, businesses now focus on developing solutions rather than maintaining infrastructure to boost ROI and reduce costs across significant operations.

You can see some examples by clicking on -

  1. Heavy water saved $4,000 on backend maintenance by choosing serverless architecture.
  2. Nordstrom's web applications with high traffic have benefited from serverless because of its high scalability.
  3. After Postlight dealt with massive backend costs, it moved to a serverless model. This reduced infrastructure expenses from over $10,000 to just $370 monthly.

High Scalability

Serverless apps offer applications the capability of quickly scaling to meet changing user demand or usage patterns, using containers to start and stop servers when multiple instances need to run one function simultaneously.

Serverless architecture allows businesses to prioritize traffic to better utilize its capabilities by processing multiple requests at once without interruption - from one user or thousands.

Companies that prioritize traffic typically opt for serverless architecture.


Updates And Deployments

Serverless environments remove developers' need to upload code directly onto servers when releasing an app; developers can quickly upload their code and release their version.

Every customer will have instantaneous access as soon as an update has been rolled out to all devices.


Reduced Latency

Serverless apps do not rely on servers to host their code, making them ideal for deployment anywhere and running seamlessly without restrictions from one provider or another.

Serverless functions could come from anywhere, depending on which provider your provider hosts them.

Reduce latency as user requests don't need to go back through an initial server, cutting time spent transmitting and processing.


Simple Operations Management

Companies historically relied upon legacy systems to expand their software systems, often at great expense to innovation.

Unfortunately, reliance upon legacy systems proved detrimental in disrupting businesses.

Serverless architecture allows companies to focus on innovation while leaving infrastructure management to external providers.


Improved Pivoting

Implementation and maintenance are far more straightforward when taking a serverless approach than more conventional approaches, often helping companies realize their products are no longer increasing revenue or reaching the wrong audiences.

Serverless architecture offers businesses an efficient means of being more innovative and experiencing faster success.

Startup owners have more freedom and ease when managing resources and time efficiently; this presents several distinct advantages for their venture.


Examples Of Serverless Architecture Mid-Market Companies

Examples Of Serverless Architecture Mid-Market Companies

 

Over the years, many industries have been using serverless cloud applications.

These are the types of applications.

App architecture cloud: Providers simplify web architecture development by helping to develop APIs connecting cloud services; after that, it is simply a matter of signing into your account and running code.

Serverless architecture simplifies creating one-page apps, as their lightweight structure requires only a few dependencies to run smoothly.

They make an ideal candidate for serverless architecture.


IoT Backend

Managing IoT servers when there are numerous connected applications can be challenging. To effectively oversee them, developers can focus on creating rules to activate database searches for devices and registration logic and activation codes when requested by devices requesting access to servers.


SaaS (Software as a Service)

SaaS software development involves handling an ever-shifting load of tasks and customers. Solution architects often need help to meet changing market requirements; scaling automatically with serverless architecture allows constant innovation and rapid deployment.


Mobile App Backend

Providing multiple environments is at the core of serverless architecture. Developers using serverless architecture can utilize native backends for applications to simplify user actions when calling out to cloud vendors for serverless functions rendered as service by those vendors.

Deciding if serverless architecture suits your company can be tricky, given its many drawbacks, such as limited control and management tools.

Here's some help on implementing serverless technology and when not.


When Should You Use And When Shouldn't You Use Serverless Computing?

When Should You Use And When Shouldn't You Use Serverless Computing?

 

These tips will help you determine if a serverless solution is the right choice for your company.


Use

  1. Instead of maintaining your infrastructure, you want to focus on developing practical solutions.
  2. Reduce development costs while maintaining quality.
  3. Want automatic scaling without getting into complexities?
  4. Server load is unpredictable for some apps.
  5. Apps are frequently updated.

Do Not Use

  1. Your real-time application that uses WebSockets for FaaS will have a limited lifespan.
  2. You can use this method if you want a fast response from your server. When functions are left idle in serverless architecture, they become cold, forcing you to call them manually.

A hybrid solution must be adopted; pilot projects would utilize FaaS with integration between BaaS. The model may then be expanded for more extensive use cases before revamping the software development processes.


What Can You Do To Make Your Serverless Business Model?

What Can You Do To Make Your Serverless Business Model?

 

We help businesses across industries and regions build digital products and expand their offerings with digital services.

In recent years, serverless apps have played an instrumental role in this process and are used as the business model behind serverless technology.

  1. Our first step is to understand your objectives and collect requirements.
  2. We then find the technology stack best suited to a serverless architecture.
  3. We will then offer you an estimate and deliverables plan.
  4. The documentation is then written.
  5. We will then create a storage environment for your data on Amazon S3 buckets or Amazon Redshift clusters. To achieve this, we make functions for your website.

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Wrapping Up

Serverless architecture offers business owners and software developers many benefits, freeing developers from infrastructure management while increasing scalability, stability, and time-to-market.

Adopting such technology in traditional IT systems may prove challenging, requiring milestone-by-milestone steps for adoption; Managed cloud services simplify the transition without negatively impacting business operations.