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  • Santanu Mandal

    Project Manager

  • Published: Apr 28,2025

  • 15 minutes read

Microservices vs. Serverless Microservices vs. Serverless: Which One Should You Choose?

What is Adaptive Software Development
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    Stuck between choosing Microservices vs. Serverless for your next custom software development project ? 

    Well, you are not alone! 

    Hundreds of software development leaders around the world face this crucial choice – to employ microservices or move forward with a serverless architecture. By experience, we know the right  architecture can be a deal-maker or breaker on your solution performance, UI/UX and scalability. However, in this debate on microservices vs. serverless, both the methodologies offer their unique set of benefits and serve completely different requirements. 

    While microservices are preferred by applications requiring more hands-on management, server control and backend infrastructure, serverless architecture is popular among apps needing quick development/deployment with the aim of scaling rapidly. With a myriad of software development tools around every corner, it is a choice that requires careful planning and accurate goal mapping.

    Below we have summarized an in-depth analysis and comparison on the microservices vs. serverless dilemma, aimed at helping you choose what is right for your next project.

    What are Microservices?

    Microservices architecture is a software development methodology that builds an application as a combination of small, loosely dependent, but inter-connected services. Each individual service is responsible for carrying out a specific functionality within the framework and is developed, deployed and scaled independently. Each of these services perform or add to certain functions that collectively contribute to the overall experience that the application offers, be it from web, mobile or any other source.

    serverless-architecture-framework

    In essence, microservices is a software development approach that enables building large-scale applications via smaller, more manageable independent components. The microservices approach allows each function to scale autonomously and redefine the application without disrupting the core architecture, its processes and the performance. Being highly focused with its self-contained processes, microservices are designed to reengineer operations efficiently, without any downtime or server issues. 

    Think of it as a team of highly efficient developers – each developing singular entities perfectly, that combine to make the whole application run. Global companies like Netflix, Amazon and Spotify are known to use and develop microservices to stay fast, flexible and ahead of the competition. 

    Key Benefits of Microservices

    Independent Development / Deployment Cycle

    One of the primary advantages that microservices development approach offers is the flexibility to build, test, and deploy each service separately. This approach allows various teams to work on various parts of the application simultaneously, accelerating development time and reducing time-to-market for new feature releases and updates.

    Fault Isolation

    Another major benefit of microservices approach for software development is improved and more effective fault isolation. Unlike monolithic applications, where single system failures can bring the entire application down, microservices contain the fault within one service and isolate it from the rest of the application, enabling systematic maintenance and repair. This approach makes sure that the failure in one service does not affect the rest of the application, minimizing system-wide disparity and improving stability.

    Easier, More Flexible Scaling

    When working in a microservices architecture, it is way easier to scale an application based on the feature demand, as each individual service (working together to run the application) can be independently scaled and deployed. This comes in handy for applications that work with varying and uneven workloads and usage patterns across different functionalities, allowing business owners to allocate resources optimally for each microservice.

    What is Serverless?

    Serverless architecture approach of custom software development is an innovative cloud computing model that enables developers to write code and build applications without having to manage the underlying (backend) infrastructure. In this environment, a Cloud Service Provider (CSP) takes care of the entire provisioning, scaling and maintenance processes needed to run the app, allowing developers to focus more on writing impactful code.

    When working in a serverless architecture, each function is developed as an event-based trigger, working only when a specific action has been taken. Development scales automatically and is cost-effective in a serverless environment, since most of the provisioning and management is automated, and payment is required only when a service has been used. 

    Amazon’s AWS Lambda is one of the most renowned tools for serverless development approach, followed closely by Azure Functions and Google Cloud Functions. By accurately leveraging the serverless approach, businesses can enhance their overall performance and  efficiency, reduce operational costs and enable quick adoption to ever-changing market trends.

    Key Benefits of Serverless

    Scalable and Flexible

    One of the primary benefits of employing serverless architecture is the ease of resource allocation in response to the demand generated. These platforms automatically allocate the computing resources based on data. This means that as the demand grows and the application needs a ramp-up, the infrastructure automatically scales to meet the needs, without any manual intervention. 

    Cost Efficient

    When working in a serverless environment, users only pay for the exact computing resource that has been used, rather than paying for and maintaining the entire pre-allocated resource stack. This results in significant cost savings, especially for applications and solutions that have variable workloads or fluctuating usage patterns.

    Accelerated Time-to-Market

    In a serverless environment, there is no need to maintain and manage server infrastructure by developers. This freedom helps  the tech team focus deeper into building features and writing the code. With this seamless process, time-to-market for new feature updates and product iterations is  significantly reduced, making the application/solution readily available for launch.

    Want to talk about which architecture to choose? Contact us and we will reach out to help you!

    Contact Unified Infotech

    Key Differences Between Microservices vs. Serverless

    Even though microservices vs. serverless is a huge debate, and the two methodologies are compared all the time, there are certain parameters that conclude they are very different from one another, under the hood. Below is a detailed comparison on microservices vs. serverless.

    Infrastructure Maintenance Responsibility

    When it comes to microservices vs. serverless approach, infrastructure management plays a crucial role. In the case of microservices, the development usually requires a more hands-on approach and is dependent on the dev team of the organization, be it in-house or outsourced. This team is responsible for managing, monitoring, deploying, supporting and maintaining the infrastructure, whether deployed on containers or virtual machines. All the aspects of the architecture, from framework and computing to security are also managed by the development team.

    In case of serverless, maintenance and management of infrastructure and IT resources is taken care of by a third-party Cloud Service Provider (CSP). With all internal processes and server maintenance being taken care of by the third-party service provider, developers focus on curating meaningful code that lasts, reduces project costs, avoids recruitment expenses and eliminates hardware investments / storage costs altogether.

    Cost Model

    When the cost question comes in, microservices vs. serverless pose very different offerings. When it comes to microservice architecture, they are generally less cost-efficient due to their billing models. Developers might know that the initial stages in developing microservices are costlier than serverless – the development requires several teams and members to work on specific components and amalgamate them via APIs. Since the internal development team is directly involved in a microservices approach, development, support and maintenance costs are higher. There is, however, more control and autonomy, with no interference from 3rd party vendors and risks of potential vendor lock-ins.

    In a serverless architecture, the costs are generally lower since these functions are billed according to the number of events that triggered the code deployment, and the majority of the resources and server maintenance are taken care of by external cloud service providers. In this case, serverless architecture follows a pay-as-you-go pricing model, where payment is charged only when the code is executed. Developers and the tech team are required only to write specific codes and code elements, which are then automatically deployed. With no need for server and hardware experts, serverless development architecture reduces the go-to-market time, overall costs, and development complexity.

    Development / Deployment Strategy

    Development/deployment strategy for microservices vs. serverless also differs vastly. In microservices, each service is developed, tested, and deployed independently as containerized services using platforms like Docker and Kubernetes. This gives granular control to the Dev team but also demands full involvement. It offers more customization to the development cycle but also requires more coordination, expertise, and time from the tech team.

    Serverless, on the other hand, are functions that are developed and deployed as event-triggered services aimed at rapid development and deployment cycles with higher agility and less complexity. In this approach, server management and underlying infrastructure are handled by a CSP, which allows the applications to be automatically packaged, deployed, and scaled. The pipeline is also simplified; however, flexibility limitations around execution environment customization and runtime do occur.

    Scalability

    In the scalability arena, both microservices and serverless models are considered highly scalable. Both these models allow the addition of new users to software solutions while achieving high performance. The difference, however, comes in the level of control vs. the level of automation offered by the two architectures.

    In microservices, each function can be scaled independently, on demand – this means that microservices need manual and/or semi-automated scaling processes for each service, generally employing autoscaling container orchestration, giving the developer more control. In serverless, scaling for each individual function is automatic and based on triggered events, without any prior setup required. This is especially useful for applications with inconsistent traction and event-based triggers.

    Vendor Lock-in

    When it comes to microservices, the architecture offers greater portability and flexibility across cloud-native platforms, especially when using containerization standards like Docker and orchestration tools like Kubernetes microservices. This flexibility enables the adoption of multi-cloud strategies easier and shifts providers with minimal work.

    In serverless architecture, the approach often depends on provider-specific services such as AWS Lambda or Azure Functions. These third-party integrations streamline the development cycle but can lock the business in a specific ecosystem. This makes migration of serverless applications more complex due to proprietary configurations and APIs, usually involving rewriting code, new event model adaptations, and reconfigurations.

    Granularity and Scope

    Granularity in software development refers to how much smaller or finer a system can be broken down into individual working services or components. In the context of microservices vs. serverless, both are considered to be more granular than at least monolithic architecture. There are, however, subtle differences that make or break the deal. 

    In microservices architecture, the applications can be easily broken down into smaller modular functions, each responsible for carrying out a specific task in the larger workflow. These independently deployable services provide greater control and scope as it directly affects the wider ecosystem of the organization. 

    Serverless architecture, on the other hand, takes granularity one step ahead – into individual functions. Here, each function is designated to execute a specific action only on an event-based trigger, and can be developed, maintained, and scaled independently. This precise granularity enables efficient scaling and cost control – however, certain complexities do arise when managing and handling multiple functions for larger, more bulky workflows.

    Complex Applications vs. Short-term Services

    The microservices vs. serverless debate has its roots in the execution model and strategies as well. At their core, these two models offer completely different strengths. Microservices are designed, developed, and deployed for persistent applications that will need to run in the long -term. Here, microservices can constantly operate to handle various complex and evolving business requirements, provide better scalability and flexibility, and help organizations build an enterprise-grade ecosystem.

    Serverless architecture, on the other hand, is designed for applications that need efficiency and quick response. Services in this model are event-driven and only an external input can trigger the function, meaning no processing without input. This makes serverless an on-demand model and eliminates unwanted CPU usage, reducing associated costs and overheads.

    Runtime in Microservices vs. Serverless

    Microservices generally run on dedicated virtual machines and are built for larger applications with heavier workflows and longer duration tasks. They process greater quantities of data and need reliable operational capacity. Since the functions are maintained by the internal Devops team, there are no limitations to the execution runtime of the functions, storage used, or RAM. Developers can expend as much resources as they want until their services are executed.

    Serverless functions, on the other hand, come with strict runtime limitations set by the specific providers. Since all the infrastructure and server maintenance is the responsibility of the CSP, developers need to abide by the limits. For example, AWS Lambda limits the execution runtime to 15 minutes, whereas some other provider can offer something else too. By design, these functions are intended for short-term processes and reduce RAM usage.

    microservices-vs-serverless key differences

    Want to talk about which architecture to choose? Contact us and we will reach out to help you!

    Microservices Vs. Serverless Use Cases

    Microservices

    Microservices is generally employed when the app in question is set to undertake larger tasks and perform heavier duty execution with multiple independent features. Microservices architecture is ideal for larger enterprise platforms and solutions needing custom architecture and SaaS products with tons of business logic.

    Large-scale eCommerce Platforms

    Allowing different teams to work simultaneously and independently across product catalogs, payments, user accounts, order fulfillment, etc., microservices enable scaling of each service separately based on demand.

    Streaming Services

    Audio and video streaming platforms like Netflix and Spotify, who process data in real-time, also use microservices to efficiently handle user preferences, playback management, billing, content recommendations, and subscriptions individually. 

    Fintech and Banking Services

    Certain fintech and banking services also deploy microservices for a more secure and independent model of system, which handles user authentication, fraud detection, customer service, and transaction processing.

    Enterprise SaaS Products

    Large-scale business software like ERP, CRM, POS, project management tools, etc., heavily use microservices to develop manageable, customizable services, which ensures customer reliability and compliance without hurting the system.

    Supply Chain Management and Logistics Systems

    SCM systems and logistics need microservices to individually develop, scale and track inventory management, fleet management, order tracking, delivery scheduling, etc. which allows for greater flexibility and control.

    Serverless

    The serverless architecture is typically used when the application in question needs to get market ready quickly without the hassle of infrastructure management. It is ideal for building MVPs and applications with smaller APIs, automation scripts, and event-based triggers.

    Event-driven Architecture / Applications

    Serverless architecture is perfect for applications that execute functions based on certain triggers like file uploads, user clicks, database updates, etc. 

    Real-time Data Processing

    Applications that work on real-time data processing and rendering also use the serverless approach to development, as consuming, filtering, and analyzing streaming data (IoT sensor data) becomes way easier and faster.

    Scheduled Tasks

    Serverless is great when periodic, repetitive tasks like database backups and email reports need to be executed without the need for managing server infra.

    Mobile and Web Apps Backend

    Serverless is often used for mobile and web apps where the services need to handle APIs, multiple authentications, notifications, and user management. Here, businesses and developers need not worry about server maintenance, just focus on code.

    Chatbots and Voice Assistants

    To develop lightweight, quick response apps like bots and virtual assistants, serverless play a niche role and manages user messaging and voice commands promptly.

    microservices-vs-serverless-use-cases

    Microservices vs. Serverless – What is The Right Fit For Your Business ?

    With all that we have talked about, it is evident that when it comes to microservices vs. serverless, the question is not about choosing the better option, but choosing what is the right fit for your business needs. Both microservices and serverless approaches offer their own unique advantages and come with their innate limitations. The borderline?

    • Choose microservices when you need full control and transparency, high resilience, and maximum flexibility.
    • Choose serverless when you need rapid development and deployment, low maintenance, and overhead and easier scalability.

    Unified Infotech – Your Top Partner for Microservices vs. Serverless Development

    We know choosing between these two is not easy. While both the architectures offer their set of unique advantages, they both come with their considerations as well. We understand the core granular differences between microservices and serverless and how each can seem enticing and yet not suited to the needs.

    Microservices are great for longevity, durability and consistency but incur significant server, infrastructure, maintenance and overhead costs. It requires skilled Devops to handle business-critical complexities and generally has a longer development cycle. 

    Serverless are perfect when quick deployment, independent scaling and internal support is not in need. However, various limitations and constraints come into play from the CSP – vendor lock-in, runtime and execution limits, cold start latency and monitoring issues. Even though the development cycle is shorter, with less control over the infrastructure, fine-tuning of server, scaling and network policies is restricted.

    So what should you choose?

    Here is where Unified Infotech can help you! 

    With our experience of over 15 years in the custom software development and web development and design industry, we understand the dilemma of choosing the right architecture for your next project. Unified Infotech can vouch to put its best foot forward and employ the best suited architecture for your application stack on a whole. With our analytical skills and expert knowledge in the domain, we can accurately map your business needs with the technical goals and growth plans of the organization to suggest the architecture that works the best.

    We have expertise in:

    • Scalable microservices using Kubernetes, Docker, and cloud-native apps / tech.
    • High-tech serverless apps on Amazon AWS, Microsoft Azure and Google Cloud
    • CI/CD pipelines for quick development and deployment
    • Best-in-class security and compliance
    • Proven custom software development and deployment methodologies

    Partner with us today and witness a transformed tomorrow! Acquire strategic guidance and insights on high-performance development; learn how to support and scale your business perpetually and keep innovating to suit your needs, no matter which architecture. 

    Talk to us and learn how a tech partner can adapt to your business requirements and not loiter around the bush. We answer the Call.

    Need to know more about us – here is how we work and who we are!

    Santanu Mandal

    Project Manager

    "Santanu Mandal, Project Manager at Unified Infotech, leads with precision and dedication to deliver successful projects. He is not just a tech enthusiast but also a complex problem solver. With a focus on detail, Santanu ensures projects meet and exceed expectations.”

    Frequently Asked Questions (FAQs)

    How does Unified Infotech reduce the risks of vendor lock-in with serverless?

    Unified Infotech uses cloud-agnostic strategies wherever possible, like abstracted APIs and portable serverless frameworks, making it easier for you to migrate or scale across platforms later if needed.

    What is the difference between containerization, microservices and serverless?

    Containerization refers to the process of bundling and categorizing an application and all its dependent functions into isolated units, ready for consistent deployment over time.
    Microservices architecture divides an application into smaller, independent components for unrestrained development and deployment. Serverless approach allows the users to execute individual functions based on triggers and scale on-demand, without ever managing the servers and infrastructure.

    Can I combine microservices and serverless architectures?

    Yes, many modern apps use a hybrid approach. Microservices handle core business logic and heavy workloads, while serverless functions trigger smaller tasks like image processing, notifications, or scheduled jobs. This lets teams balance flexibility with scalability and optimize costs.

    What are the biggest operational challenges with microservices?

    Microservices increase complexity dramatically. You need strong service discovery, API management, monitoring, logging, security, and orchestration (often Kubernetes). Without proper architecture and DevOps practices, microservices can become chaotic and fragile.

    How can Unified Infotech help me choose between microservices and serverless?

    Unified Infotech provides consultative guidance to assess your app’s specific needs, growth plans, and resource limits. We help you make a data-driven decision on whether microservices, serverless, or a hybrid model will deliver the best results.

    What makes Unified Infotech a good partner for complex architecture decisions?

    Beyond just coding, Unified Infotech brings strategy consulting, architecture planning, security audits, and scalability roadmaps to every project, ensuring your platform isn't just built — it’s future-ready.

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