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Serverless: Knowing its limitations means using it properly

Serverless infrastructure advantages

“Serverless” is one of the new hype words in the IT industry. According to MarketsandMarkets Analysis, the global serverless architecture market size is projected to grow from USD 7.6 billion in 2020 to USD 21.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 22.7% during the forecast period. The major growth driving factors of the serverless architecture market include the rising need to shift from CAPEX to OPEX by removing and reducing the infrastructure cost. Gartner analysts also predict that half of all companies worldwide will have implemented a serverless model by 2025, compared to 20 percent today.

However, the term “serverless” is sometimes misunderstood. It’s not about getting rid of system hardware entirely. Rather, it’s about a new idea of managing applications and apps while still carrying out basic operations as usual. In plain language, this means: With serverless, the technical, application-relevant level of system architecture is managed independently of hardware-specific issues. The app managers only take care of the top functional level or the service. The cloud platform takes care of the provisioning logic, right through to the virtualization of resources and server control, giving the app manager room for other activities.

Serverless computing is an architecture where a cloud provider fully manages code execution, instead of the traditional method of developing & deploying applications on servers. Gartner believes that serverless computing requires IT leaders to take an application-centric approach. Instead of physical infrastructure, interfaces for application programming (APIs) and service level agreements (SLAs) are managed. Thus, developers and businesses can run their services without carrying the burden of managing the underlying infrastructure. Pricing is based on an application’s actual resource consumption, not prepaid capacity units. Also, server management decisions and capacity planning decisions are transparent to the user.

Even though the entry into the world of serverless is quite easy, the complexity increases very quickly when developers want to use more sophisticated resources, such as API gateways that sit between the client and several backend services and the calls management. The more the respective company builds on serverless architectures, the greater the danger of vendor lock-in. Decision-makers should keep this in mind if they want to define a serverless strategy that allows them to avoid long-term vendor and security risks. If there is a corresponding awareness in the company, it can use the advantages of serverless without having to fear potential pitfalls.

You must also acknowledge that serverless architecture is not the right choice for all cases. If the designated “serverless” application requires significant scaling and generates extremely high traffic for prolonged periods of time, it can become expensive. In this case, a cheaper alternative is a computer cloud such as Amazon EC2, which provides computing capacity in the cloud. Serverless scenarios are also unsuitable for applications that require noticeably short response times, such as real-time applications.

The mindset of the developers must also match the specific requirements of serverless. For example, it is imperative that they have an in-depth understanding of how serverless and event-driven architectures are built. Developers must also know the specifications and limitations of the platform used and keep an eye on application and data security. The risks and consequences of implementing serverless are severe unless the benefits have been demonstrated for a specific use case and the organization has carefully considered the ultimate costs and outcomes. Decision-makers should therefore only decide on a potential switch to serverless based on a detailed cost-benefit analysis.

The benefits of serverless computing are increased agility, unlimited scalability, easier maintenance, lower costs, and back-end services provided by the provider. It also ensures that companies and their developers no longer must worry about the servers and their configuration. In addition, serverless computing supports multi-cloud environments and makes the pay-as-you-go model a reality. Furthermore, the serverless approach promotes the sustainability of data-supported strategies in financial terms. And that’s exactly why serverless computing is reshuffling the cards in data integration. Now the possibilities in the field of data-on-demand are almost unlimited. Because companies can decide how, where, and when they process data in a way that makes economic sense for them.

Financial Challenges of an Ever-Growing Multi-Cloud Adoption

Financial Challenge of an Ever Growing Multi-Cloud Adoption

The multi-cloud approach is increasingly gaining ground. However, the path to the multi-cloud must be accompanied by a reconsideration in the planning of IT budgets. Otherwise, the benefits of the multi-cloud cannot be fully exploited.

According to the Flexera 2021 State of the Cloud Report, today, 92 percent of organizations have a multi-cloud strategy in place or underway, and 82% of large enterprises have adopted a hybrid cloud infrastructure. On average, organizations are using 2.6 public and 2.7 private clouds. . The main reason for this development is the greater flexibility that the multi-cloud offers. It gives companies the opportunity to choose the optimal solution. Because only one cloud solution isn’t suitable for all requirements of a company. In the multi-cloud, multiple cloud services can be grouped together in a single cloud. It is possible to combine several public cloud solutions as well as a private cloud with public cloud models. However, the user sees the combination of multiple cloud services and platforms as one big cloud.

The flexibility of IT is crucial for companies that digitize their business models and processes. After all, IT is expected to help shape change in an agile, flexible, and cost-effective manner. This includes being able to respond quickly to changes, scale services as needed, support innovation, streamline business processes and ensure that security, compliance, and privacy requirements are met.

Challenge: Budget flexibility

In addition to the numerous organizational and technical challenges that come along with the implementation of a multi-cloud approach, the budget model is a drag on business that should not be underestimated. Traditionally, the IT budget for investments -CAPEX- and operational expenses -OPEX- is planned. In the past, there was always a need to increase investment costs when IT was changing. As servers and software were purchased, companies only paid attention to their CAPEX costs and by contrast, the operating costs budget has been kept low, if not cut, annually. This is changing in the world of the cloud. Because cloud costs are OPEX costs.

Challenge: Change of budget models

While IT departments are adapting to the demands of digitization, budget models have not yet been revised in most companies. Strategic modernization needs flexible budgets and a shift to more OPEX models. For many IT managers, this represents a big challenge, because a reduction in the investment budget isn’t accompanied by a reduction in the overall budget. Instead, the goal is to create more cost-effective IT without the need for regular CAPEX investments to update tools and systems. Only with a sufficient OPEX budget, IT can meet the expectations of any company sufficiently.

Step-by-step and well-orchestrated

No company will completely change its budget model from one day to the next. Nevertheless, the change of the budget approach can succeed if for example, year by year, a certain percentage of the CAPEX budget is added to the OPEX budget. However, good planning and comprehensive management of the multi-cloud are necessary. Logically, budgeting and flexibilization continue to be accompanied by the expectation that this budget will be used efficiently by IT. This means that those responsible must also be in control of the disadvantages of the multi-cloud, such as:

Increasing complexity and higher administration due to the higher number of providers.
Excessive error rate due to the increasing number of interfaces.
Not a single privacy and security approach because different vendors typically apply different concepts.
Difficulties in complying with license terms as different vendors have different licensing models.

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Support by multi-cloud experts

To successfully manage the jungle of solutions, licensing models, and security concepts, a 360-degree view of the multi-cloud is needed. As more and more businesses choose Matrix42, for example, they offer multiple, coordinated solutions, while at the same time providing the ability to leverage other cloud solutions, as well as the private cloud, to ensure full control of the entire system.

The multi-cloud opens up many opportunities but also brings with it many challenges. Professional advice and support help to make the most of the advantages of the multi-cloud. That’s where Xorlorgics comes in to guide you step by step in your cloud adoption journey. Feel free to contact us with any questions you might have for your cloud project.

Sources:

Cloud Computing Trends: 2021 State of the Cloud Report

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