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- Serverless Use Cases (Top Companies with Real Examples & Best Practices)
Serverless Use Cases (Top Companies with Real Examples & Best Practices)
- Web & Mobile Backends (APIs)
- Microservices Architectures
- Static Websites & JAMstack Hosting
- Background Tasks & Scheduled Jobs
- Media & File Processing
- Real-Time Data & Stream Processing
- Chatbots & Voice Interfaces
- Parallel & High-Compute Tasks
- AWS
- Microsoft Azure Functions
- Google Cloud Functions
- Cloudflare Workers
- Vercel Functions
- Netlify Functions
- IBM Cloud Functions
- Oracle Functions
- DigitalOcean
- Alibaba Cloud Function Compute
- Coca-Cola (IoT Vending Machines)
- Netflix (Media Encoding Pipeline)
- Nordstrom (Event-Driven Architecture)
- T-Mobile
- Keep Functions Lightweight & Stateless
- Use Environment Variables & Secrets Properly
- Monitor, Log & Trace Every Function
This blog post will discuss serverless uses and examples, as well as best practices for using serverless offerings in your next project!
- Serverless computing allows developers to build and run applications without managing server infrastructure.
- Serverless architectures are event-driven, meaning functions are triggered by specific events and only run on demand, which enables automatic scaling and a pay-as-you-go cost model.
- Common use cases for serverless include web and mobile backends, microservices, background tasks, media processing, and real-time data analysis.
- While beneficial for cost and scalability, serverless has limitations such as cold starts, execution time limits, and concerns about vendor lock-in.
Introduction to Serverless Computing
Serverless computing is an application development model that allows developers to build and run applications without managing any server infrastructure. Instead, a cloud service provider provides the server infrastructure required to run the application. This removes the burden of running and maintaining servers from the developers so they can fully focus on writing and deploying code.
How Serverless Architecture Works
Serverless computing does not mean that the application runs without a server. However, in the serverless architecture, the servers are completely separated from the app development layer.
The cloud provider handles all the routine tasks related to managing the server, including provisioning, maintaining, and scaling the infrastructure as required. With this approach, the developer simply has to write the code and package it in containers or as a set of discrete functions. On the server, the containers respond to specific events on demand and can scale up or down automatically as needed.
Serverless computing differs from traditional cloud computing models and container architectures in the sense that the cloud provider is responsible for managing the cloud infrastructure and server scaling. The entire app runs on computing resources managed entirely by the cloud providers. The foundational components of serverless computing are explained in detail below.
Function-as-a-Service (FaaS)
A serverless application can run on a Function-as-a-Service (FaaS) architecture. Here, the developer writes the code for the application as discrete functions, with each function performing a specific task. The functions are deployed to a Function-as-a-Service platform such as AWS Lambda or Azure Functions.
The functions are designed to be triggered by a specific event, such as an HTTP request or an incoming email. When the FaaS receives a request, the function is executed on demand either on a running server or a new one.
Event-Driven Execution & Auto-Scaling
A serverless architecture typically runs on a metered, on-demand model. They are event-driven, which means functions or services are triggered by specific events. Instead of a constantly running server, a serverless function sits idle and doesn’t cost anything until it is triggered. This model also allows the server to scale up or down based on demand automatically.
Real-World Serverless Use Cases
A serverless architecture is quite versatile, which makes it an adaptable choice for a lot of real-world scenarios. The following are some of the ways developers can make use of serverless computing for various projects.
Web & Mobile Backends (APIs)
Mobile and web application developers use serverless infrastructures, such as API Gateway and Lambda, to create scalable backends for modern web applications. This model offloads the entire backend functionality (including authentication, database management, messaging, and storage) to a serverless backend as a service provider. The frontend of the web app communicates with this backend via RESTful and GraphQL APIs. This reduces development time and makes it easier to scale automatically.
Microservices Architectures
The microservices model of app development breaks down a single application into several small, loosely coupled microservices. Each of these microservices is independently deployed on a serverless system and triggered by events. Serverless computing’s capabilities, including asynchronous task handling and service decoupling, make it an ideal solution for this type of software architecture.
Static Websites & JAMstack Hosting
Serverless computing can be used to serve static web content written with HTML, CSS, and JavaScript. Services like Netlify and Amazon S3 allow users to host these static websites while tapping into their serverless capabilities to power backend interactions such as API calls and form handling.
Background Tasks & Scheduled Jobs
A serverless architecture can be used to create a system that can run background tasks or periodic processes on a schedule. This is done by using serverless functions on a cloud-native tool like AWS Lambda. Examples of tasks that can be scheduled this way include CRON Jobs, periodic report generation, email sending, log rotation, and so on.
Media & File Processing
This part explores file-related automations such as image resizing, video transcoding, virus scanning, or file validation when objects are uploaded to storage buckets.
Real-Time Data & Stream Processing
In analyzing data collected in real time by IoT devices, application logs, or user activities, analysts often have to set up complex workflows and processing pipelines. Tools like Azure Event Hub and AWS Kinesis can be used to build serverless solutions that can ingest, transform, and analyze data. This approach also makes it possible to scale data pipelines seamlessly as required.
Chatbots & Voice Interfaces
A serverless architecture can be used to swiftly create and deploy chatbots and virtual assistants that are controlled by event-triggered functions. Users can interact with these bots via messaging systems or through voice interfaces thanks to natural language processing.
Parallel & High-Compute Tasks
Developers can boost the speed of executing compute-heavy operations by running multiple operations in parallel. The best way to do this is with a serverless infrastructure. Examples of high-compute tasks that can be run this way include machine learning inferences, scientific simulations, web scraping, and PDF generation.
Integration & Workflow Orchestration Use Cases
Serverless computing can be used to integrate and automate workflow orchestration across different online services. Developers can create a cost-effective solution by combining independent serverless functions to create larger workflows and automate all kinds of business logic. Examples of such workflows include:
Multi-Step Workflows
Multi-step workflows provide a way to execute complex business processes as a series of serverless functions instead of creating a single monolithic function with advanced features. This approach involves combining multiple single-purpose functions into a single coordinated sequence. This allows you to eliminate many of the self-imposed limitations associated with individual functions, such as maximum execution time. Tools like AWS Step Functions and Azure Durable Functions are designed to help users manage entire workflows for retries, conditional logic, and long-running tasks.
Event-Driven Automations
A serverless architecture is the perfect solution for creating any system where one activity triggers another event or series of events. For instance, software that automatically resizes a media upload and notifies the user when the upload is complete could benefit from event-driven automation. To create the backend for a system like this, developers can chain multiple cloud services together using serverless triggers to execute the software logic.
DevOps & Automation Scenarios
Managing infrastructure, which includes both physical and virtual servers, has always been a critical part of DevOps. By abstracting server management away to a third-party cloud provider, serverless computing introduces several benefits for DevOps, including boosting scalability, saving cost, and reducing the operational overhead typically associated with manual processes. Here are some of the ways serverless functions can be used to automate critical DevOps workflows.
CI/CD with Serverless Functions
Serverless functions can be used to automate many of the stages of a typical CI/CD pipeline. For instance, using a serverless tool like GitHub Actions or AWS CodePipeline, a code commit can be used to trigger a build function. Similarly, a pull request can trigger automated testing and deployment. Features like this help to streamline the CI/CD pipeline for faster and more efficient software delivery.
Monitoring & Alerts
Serverless functions can be used to build lightweight monitoring pipelines that send automated alerts and notifications in response to data logs, spikes in specific metrics, or security events. The system is set up to send responses in real time. This ensures that issues are detected proactively and resolved quickly.
Top 10 Serverless Platforms and Providers
The best serverless computing platform providers eliminate the need for traditional server infrastructure management. In the past few years, several providers have emerged in this niche, each one focusing on different areas of offering services that are unique to them within the industry. Below is a list of 10 major cloud providers, with a brief overview of each of them.
AWS
Amazon Web Services offers multiple serverless solutions, including AWS Lambda Functions, AWS Fargate, and AWS Step Functions. The company is a pioneer in the serverless computing space and has a rich ecosystem, supported by a massive community and hundreds of value-added services. AWS focuses on various aspects of the Serverless architecture. For instance, while AWS Lambda helps developers run code as event triggers, Fargate offers a serverless, pay-as-you-go compute engine.
Microsoft Azure Functions
Microsoft Azure is a general cloud provider with features that help users build event-driven apps. As a Microsoft solution, this tool is particularly popular with developers who already use other Microsoft services and technologies. Microsoft Azure Functions heavily supports DevOps use cases, with tools that support continuous integration, delivery, and testing within the serverless ecosystem.
Google Cloud Functions
Google Cloud Functions is a general serverless platform that allows users to create their own event-driven serverless apps on the Google Cloud platform. One of the best things about Google Cloud Functions is that it is tightly integrated with Google’s suite of services and other existing solutions. This platform also supports AI, machine learning, and advanced data analytics.
Cloudflare Workers
Cloudflare Workers is one of the most advanced serverless computing platforms out there. This unique serverless service combines a Functions-as-a-Service model with edge computing. It is the ideal solution for developers looking for a high-performance, low-latency, and low-cost solution.
Vercel Functions
Vercel Functions is a specialized serverless provider mainly used to build and deploy serverless applications on the web. The Vercel Platform also has features that simplify the process of adding server-side logic, API endpoints, and other dynamic functionality to a static site.
Netlify Functions
Netlify Functions and Vercel are similar, particularly in their usefulness for building web applications and static sites. Netlify Functions offers developers a simpler alternative to AWS Lambda. This platform allows users to tap into the serverless functionality offered by Lambda without managing the underlying AWS services directly.
IBM Cloud Functions
This is IBM’s serverless computing platform, with a framework that is based on Apache OpenWhisk. This solution is specifically targeted at enterprise users. This tool helps organizations write lightweight code that runs app logic via API requests or third-party events.
Oracle Functions
Included as part of Oracle’s Cloud Infrastructure, Oracle Functions allow developers to build and deploy apps using a container-based serverless architecture. This solution is best suited for building enterprise applications for industries with extensive data management needs.
DigitalOcean
DigitalOcean Functions is a beginner-friendly Function-as-a-Service platform renowned for its simplicity compared to other serverless computing services. The simplicity of this platform makes it an ideal solution for startups and smaller companies.
Alibaba Cloud Function Compute
This event-driven serverless platform is the biggest provider of cloud services in Asia. It’s no surprise that this cloud platform is the leading choice for businesses that need on-demand Function-as-a-Service solutions in the region. Alibaba offers a full suite of cloud services, while also providing full support and real-time scalability.
Business Benefits of Using Serverless
The main benefit of going serverless is that it allows companies to outsource their backend management so their programmers can concentrate on writing and deploying code. The following are some additional strategic advantages that come from using a serverless solution.
Cost Optimization & Pay-As-You-Go
Since serverless platforms are event-based, they operate on an on-demand or pay-as-you-go basis. This means you only pay for instances where the system executes a function request. This eliminates the cost associated with keeping the server running when the system is idle. This model is particularly beneficial for systems where the traffic or workload tends to vary from time to time.
Faster Time-to-Market & Innovation
Serverless computing abstracts server management to the service provider. This frees up the development team to focus on other processes needed to bring the product to market, such as creating the core application logic. Not having to worry about the infrastructure also makes it easier to build prototypes or MVPs quickly and without wasting money on server management.
Operational Simplicity
When you build on a serverless application, you don’t have to worry about managing what goes on behind the scenes. This simplifies operation, minimizing the resources needed to keep things running. Serverless deployment also frees up the team to focus on other aspects of your business operation.
Limitations of Serverless (And When to Avoid It)
Going serverless isn’t without its limitations. While this solution has several benefits, it might be a good idea for certain situations, such as when you need to build a system that can handle high and unpredictable traffic. This solution may also struggle with handling systems that have a lot of resource requirements (high throughput and long-running processes). The following are some of the reasons for these limitations.
Cold Starts
In a serverless application, the server only runs functions when it is invoked. This can lead to cold starts, which is a situation where response time is slowed down when the server is invoked for the first time or after it has been idle for a while. This is particularly common for functions that are only accessed sporadically.
Execution Time Limits
To manage resource consumption, serverless platforms often impose limits for each function. One of the most important constraints is the execution time limit, which refers to the maximum time a serverless provider allows a function to run before it is terminated. This limit makes it impractical to deploy serverless applications or workloads that require long execution times in a serverless environment.
Limited Local Development Tooling
Serverless systems rely heavily on cloud services and APIs. Each time you need to test or debug a serverless software, you have to first deploy it to a cloud environment, which is costly and time-consuming.
The only alternative is to simulate cloud execution environments on your device using emulators or mock services like AWS SAM Local or Azure Functions Core Tools. This limitation in local tooling capabilities slows down the development lifecycle and can also make it difficult to identify bugs in the application.
Concerns About Vendor Lock-In
With a serverless architecture, the bulk of a platform’s backend operations depends on a third-party cloud platform provider. Like all software as a service, there are always concerns about vendor lock-in and the complexity of migration if you need to switch service providers.
Real-World Case Studies & Industry Examples
Serverless framework use cases span a variety of industries, from fintech to healthcare providers. Serverless architectures are also being used in emerging fields such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning, and blockchain technologies – just to name a few! Here are a few companies that stand out with their serverless offerings.
Coca-Cola (IoT Vending Machines)
The Coca-Cola Company has been migrating to serverless technology since 2016. The Coca-Cola Digital Platform Architect, Michael Connor, spoke at the AWS re:Invent conference about a few case studies they did on serverless, in which they saw a significant cost reduction.
Coca-Cola vending machines located around the world are linked to Coca-Cola headquarters through an integrated communication system. When the client purchases a drink, the machine contacts the payment gateway to confirm the purchase, making an API REST call to use the AWS API Gateway, which triggers a Lambda response. The transaction will be handled entirely by the AWS Lambda service. In the case of mobile transactions, a fifth step is required, which is a push notification to a user’s phone that submits the information to Android Pay or Apple Pay.
Until 2016, they had been using 6 EC2 T2.Medium machines that cost them almost $13k annually to run. Adding up all the costs for all the features they needed, it came to $4,490/year after moving to a serverless framework. This roughly means $8,500 in savings per machine per year. With an estimated 3 million vending machines around the world, this brings more than 25 million dollars in savings.
Netflix (Media Encoding Pipeline)
It goes without saying that Netflix is one of the biggest fish in the broadcasting market, serving millions of customers all around the world. Of course, it requires a huge backend infrastructure to carry a seamless customer experience.
Netflix uses Amazon Web Services Lambda to run tasks that would otherwise require a great deal of computing time and effort. During the AWS re:Invent event in 2014, Neil Hunt, Chief Product Officer, explained the change AWS Lambda brought to their existing infrastructure management.
As of now, Netflix’s media encoding process is automated by event-based triggers. As well as backing up and deploying instances at scale, they made it easy to validate the completion. Each infrastructure process falls into place thanks to the continuous monitoring of AWS resources.
AWS Lambda makes publishing easier as well. Netflix receives thousands of files every day from publishers, and each of those files must be encoded and sorted before delivery to the user. When media files are uploaded to an Amazon S3 bucket, this action triggers a Lambda function that splits the video into smaller chunks to be encoded in parallel into the multiple different streams required by Netflix. Using a series of rules and events, the final parts of the video are aggregated and deployed.
AWS Lambda is capable of alerting and shutting down instances if unauthorized access is detected. Moreover, Netflix can easily pinpoint the cause of an issue when something goes wrong, given that Lambda routinely verifies that the files are accurate, valid, and backed up.
Read more on how Netflix completed the migration.
Nordstrom (Event-Driven Architecture)
Nordstrom is a major department store chain based in Seattle, Washington. The company has always been on the front lines of technology innovation.
Rather than using data-driven applications, they switched to event-driven applications and created an open-source serverless architecture retail store called Hello Retail as a proof of concept.
Nordstrom created an event-driven app with the help of AWS Lambda. The Hello Retail! experiment by Nordstrom demonstrates how they use Kinesis and several other AWS services. Serverless, event-based, and based on an immutable, ordered, and distributed ledger, this project is made up entirely of serverless components.
T-Mobile
Similar to Coca-Cola, T-Mobile has adopted a “serverless first” policy for any new services it develops. In fact, their experiment with AWS serverless architecture resulted in a reorganization of their whole company.
In order to work with cloud-native APIs, functions, and websites on serverless, T-Mobile developed Jazz. This tool simplifies key requirements such as testing, automation, security, architecture, and integration using reusable code templates. This allows T-Mobile developers to innovate more rapidly and provide a better customer experience.
T-Mobile uncovered several benefits from using AWS serverless technologies for its APIs, microservices, and time- and event-based processing. Some of these benefits include smoother scaling, reduced patching, and time savings. Increasing flexibility in responding to customer demands was made possible by an even stronger focus on exploration and innovation.
The T-Mobile team claims they have also saved money since switching from paying for actual resources to only paying for what is actually used, another great benefit of serverless that each modern business should definitely consider.
Serverless Best Practices
A serverless architecture is a potential game-changer for organizations that need to scale their applications quickly and efficiently. However, the effectiveness of this solution depends largely on how well it is implemented. The following are some actionable recommendations that you should keep in mind when implementing a serverless architecture for solving business problems.
Keep Functions Lightweight & Stateless
Since serverless service providers tend to set time and resource limits for functions, it is best that you keep your functions lightweight and focused with short runtimes. A lightweight function is more likely to start quickly and use up minimal computing resources during execution. Your functions should also be stateless, meaning they should not retain any internal state between invocations.
Use Environment Variables & Secrets Properly
Secure secret handling is an important strategy that helps to keep your serverless functions secure. Instead of hard-coding secret data, such as database credentials and API keys, directly into your function, you should manage them with a dedicated secret management system, such as Secrets Manager in AWS and Key Vault in Azure. General non-sensitive data can be stored in environment variables.
Monitor, Log & Trace Every Function
To maintain the health of your serverless application architecture, you need to implement tools that allow you to monitor the performance of every function that’s a part of the system. For this, you can use monitoring services such as AWS CloudWatch, OpenTelemetry, and X-Ray. These tools allow you to visualize the path of every function invocation while also tracking implementation details and key metrics related to performance. Efficient observability helps you detect any performance issues in the serverless experience and fix them right away.
Conclusion: Choosing the Right Serverless Use Case
A serverless approach has the potential to change how organizations handle software development. This technology can be adopted across various industries to help teams build solutions that solve business problems without worrying about maintaining servers or infrastructure.
From creating static websites to building the backend of enterprise applications or deploying microservices, there are several use cases for this technology. This approach will be a perfect fit for your organization if your projects are event-driven, have unpredictable traffic patterns, and can be broken down into small, independent, single-purpose functions.