The influence of serverless computing models on enterprise cost optimization

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Authors: Akash Gupta

Abstract: Serverless computing has emerged as a transformative paradigm in enterprise IT, fundamentally altering how organizations approach infrastructure management and cost efficiency. This model abstracts away the complexities of server administration, allowing enterprises to focus solely on developing and deploying applications without the burden of maintaining underlying hardware. By leveraging a pay-as-you-go pricing mechanism, serverless computing enables significant cost reductions, as organizations are billed exclusively for the actual resources consumed during code execution rather than for idle infrastructure. Such dynamic resource allocation facilitates optimal usage, particularly beneficial for companies with unpredictable or fluctuating workloads. Furthermore, serverless architectures streamline development workflows by eliminating the need for manual scaling and capacity planning, resulting in improved operational agility and innovation throughput. Nonetheless, enterprises must be mindful of potential challenges, including workload-specific cost unpredictability, cold start latencies, and vendor lock-in. The strategic adoption of serverless models, underpinned by comprehensive cost monitoring and optimizations, can unlock substantial benefits in terms of both direct and indirect cost savings, agility, and overall IT modernization. As this article will demonstrate, serverless computing stands at the intersection of technological advancement and cost optimization—reshaping enterprise architectures for the demands of today’s digital economy.

DOI: https://doi.org/10.5281/zenodo.17776418

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