The benefits and disadvantages of serverless computing for SMBs

The benefits and disadvantages of serverless computing for SMBs

No matter the time or era, small and medium-sized businesses (SMBs) are always looking for innovative ways to streamline operations and reduce costs. Serverless computing offers a potential solution. But as with any emerging technology, it comes with both advantages and disadvantages. In this blog, we’ll explore how serverless computing can impact your SMB’s IT infrastructure and whether it’s the right choice for your business.

What is serverless computing?

Serverless computing enables businesses to run software without having to manage their own IT infrastructure. Instead of provisioning and maintaining servers, you pay for the exact computing resources you use, making it a flexible and cost-efficient solution. This model is particularly appealing for SMBs looking to optimize their IT budgets while keeping operations efficient.

The benefits of serverless computing

When properly implemented and utilized, serverless computing offers a host of benefits for small and medium businesses:

Cost-efficiency

For SMBs, reducing overhead costs is essential for growth and sustainability. Traditional IT infrastructure not only have considerable upfront costs, but they also incur utility and maintenance costs even when they’re running idly in the background. In contrast, serverless computing enables you to pay only for the computing resources (e.g., processing power, RAM, storage) you actually use. Serverless computing pay structures are particularly beneficial for businesses with fluctuating workloads or unpredictable traffic patterns.

Scalability without the hassle

One of the greatest advantages of serverless computing is its scalability. Whether you’re an accounting firm with fluctuating seasonal demands or a healthcare provider experiencing surges in patient data, serverless platforms automatically scale with your needs. This removes the headache of manual provisioning and ensures your systems can handle increased loads without downtime.

Faster development and deployment

Speed is essential in today’s competitive landscape. Serverless computing streamlines the development process by freeing your IT team from the burden of managing infrastructure. Instead, they can dedicate their energy to coding and building new features. This approach not only enables faster product releases and updates but also enhances the overall user experience, giving your business an edge in delivering value to clients.

Simplified infrastructure management

With serverless computing, your SMB is freed from managing physical servers, patching, or updating infrastructure. This allows your IT team to focus on more critical tasks such as data security, compliance, or strategic initiatives.

Reliability and availability

Serverless computing providers typically offer high availability and redundancy, keeping your applications up and running. For SMBs in industries such as legal services or finance, where downtime can lead to lost clients and legal liabilities, serverless platforms can provide a more reliable infrastructure solution.

The disadvantages of serverless computing

However, despite the benefits of serverless computing, it does have a few drawbacks:

Cold starts and latency

A potential drawback of serverless computing is the issue of "cold starts." When a function hasn’t been active for some time, it may take longer to initialize when triggered, leading to delays. In industries such as healthcare, real-time access to critical data, such as patient records, is essential for delivering effective care, and any added latency could hinder performance.

Vendor lock-in

Most serverless platforms are proprietary, meaning you are tied to a specific cloud provider. For SMBs in regulated industries, vendor lock-in can be problematic if you need to migrate services or change platforms down the line. Consider the long-term implications before committing to a particular provider.

Limited control over infrastructure

Serverless computing simplifies infrastructure management, but it might not suit businesses with unique requirements. For instance, SMBs in industries where data sensitivity and control are paramount may not get the level of customization or control they need to comply with the latest regulations.

Complexity in monitoring and debugging

Because serverless functions are distributed and ephemeral, tracking performance and troubleshooting issues can be more challenging. SMBs may need to invest in specialized monitoring tools to gain visibility into their serverless environments, adding to the complexity and cost.

Security considerations

While serverless platforms generally offer robust security features, the shared responsibility model means you still need to manage application-level security. In regulated industries such as healthcare and finance, ensuring that your serverless functions comply with industry standards (e.g., HIPAA or GDPR) can require additional effort and expertise.

Is serverless computing right for your business?

Serverless computing provides cost savings, scalability, and faster deployment — key advantages for businesses looking to stay competitive. However, the potential for cold starts, vendor lock-in, and limited control may make it unsuitable for businesses with highly specific or regulatory needs.

If you’re looking to embrace serverless computing, be sure to assess your SMB’s infrastructure requirements, security needs, and long-term business goals. If you need guidance on whether serverless computing is the right fit, NetQuest offers a range of managed IT services tailored to your needs. Our expert team can help you navigate the complexities of serverless computing and find the best solution for your business. Contact us today.


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