3
Serverless technologies effectively shift operational responsibilities to a cloud
service provider, and companies are applying this philosophy across the entire
application stack, including compute, storage, and network. With a serverless
operational model, there are no servers to provision, patch, or manage and
there is no software to install, maintain, or operate. In summary, a serverless
model enables enhanced scalability, agility, and resiliency and allows developers
to instead have a greater focus on core value-added tasks. Many organizations
who take advantage of serverless technologies can deploy more frequent
releases of their products and services, thereby impacting faster time-to-market
and accelerated revenue growth.
Based on our extensive experience working with Fortune 100 clients across
industries, we have developed a Serverless Total Cost of Ownership (TCO)
framework to evaluate the true cost of running a net new application using
serverless technologies, such as AWS Lambda or Kinesis in comparison to a
traditional compute, such as Amazon EC2. The Serverless TCO framework is
comprised of three key cost components: infrastructure, development,
and maintenance.
Introduction of the Serverless
TCO Framework
1 Deloitte Whitepaper on Technology Trends 2019
