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Microservices vs Serverless: What’s the Better Way to Build Your Next Big Thing?

Cloud Infrastructure Management

November 25, 2025

Have you ever started a book? Hoped it wouldn’t disclose the conclusion immediately?

Deciding on technology follows a pattern. The true value frequently lies in the process—discovering what suits your needs, what catches you off guard and what delivers the outcomes for your company.

Today, we’re diving into two buzzworthy architectures: microservices and serverless.

Both sound modern. Both claim to simplify development. Both help you build scalable apps. However their approaches to solving problems are quite distinct.

Let’s resolve the mystery—step by step.

What Are Microservices?

Imagine your application as a team.
Not one superhero doing everything, but a group of specialists. Each expert focuses on one job—and does it really well.

That’s microservices.

Instead of one giant codebase, you get small, independent services. Each service handles a single function: payments, authentication, search, analytics… you name it.

A few quick traits:

  • Each service can be. Launched independently.
  • Teams can work in parallel without stepping on each other’s toes.
  • You scale only what needs scaling.
  • It’s flexible, but also more complex to manage.

Think of microservices as building with LEGO—you shape anything you want, but you also keep track of all the pieces.

What Is Serverless?

Serverless isn’t “no servers.”
It just means you don’t manage servers. Cloud providers do.

You write small chunks of code—called functions. The cloud runs them only when needed.

That’s it.

You don’t worry about provisioning machines, scaling infrastructure, or paying for idle time.
You pay only for execution. Not a second more.

A few traits:

  • Zero server maintenance.
  • Automatic scaling.
  • Event-driven.
    Very cost-efficient for unpredictable or low-volume workloads.

Serverless feels like magic. You compose code and upload it. It’s simply… executes.

Serverless vs Microservices: Key Differences That Matter

A quick glance:

FeatureMicroservicesServerless
ArchitectureIndependent, long-running servicesEvent-driven, short-lived functions
ScalabilityManual or managed scalingFully automatic
Cost ModelPay for servers/resourcesPay per execution
PerformanceSteady and predictablePotential cold starts
DeploymentComplex pipelinesVery fast deployments
Use CasesLarge apps, long workflowsQuick tasks, triggers, automation

We should slow things down and unpack this properly.
Because on the surface, microservices and serverless look like two modern ways of building apps.
But underneath, they behave very differently—and those differences shape how your business scales, spends, and ships software.

Think of it like choosing between building a custom house brick by brick…
or renting a fully furnished apartment where you just move in and start living.

Both work. Both have perks.
But they serve different lifestyles.

Let’s break down each feature in detail.

1. Architecture

Microservices → Independent, long-running services
Microservices break your application into multiple mini-apps.
Each one runs continuously, has its own database (sometimes), and communicates with others through APIs.

You’re basically building a network of services.
Every service possesses an identity, its distinct codebase and occasionally its own technology stack.

It’s strong—like having a group of experts. But you also manage every single specialist.

Serverless → Event-driven, short-lived functions
Serverless flips the script.
There are no long-running services. No always-on servers. No machines waiting for traffic.

Instead, your code wakes up only when triggered:
a new record upload, a button click on, a scheduled occasion, a webhook—something.

These features do one component, do it fast, and then disappear.
No running in the background. No lingering processes.

It’s similar to having assistants who arrive when required to complete the job and disappear until summoned again.

2. Scalability

Microservices → Manual or managed scaling
Microservices scale, but you often need orchestration tools like Kubernetes or container platforms.
You decide how many instances to run. You decide how to distribute the load.

It’s flexible but requires strategy.

Want to handle millions of users? You can.
But you must plan your scaling rules and infrastructure setup.

Serverless → Fully automatic scaling
Serverless scaling is instant and effortless.

One user? Great.
One million users in one minute? Also great.

The cloud provider handles everything behind the scenes.
You never touch a server. You never configure autoscaling groups.
Your functions scale at the exact moment they’re triggered.

It’s scaling without stress.

3. Cost

Microservices → Pay for servers/resources
With microservices, your services run 24/7.
Even if no one uses them for hours, the infrastructure still costs money.

You pay for containers, virtual machines, compute resources, storage, and sometimes orchestration tools.

Predictable? Yes.
But not always cost-efficient, especially for light workloads.

Serverless → Pay per execution

Serverless is refreshingly simple:
If your code runs, you pay.
If it doesn’t, you don’t.

There’s no cost for idle time.
No cost for machines sitting quietly in the corner.

It works great for erratic, spiky or minimal-volume tasks.

4. Performance

Microservices → Steady and predictable
Microservices are always running.
Which means minimal latency, stable performance, and no startup delays.

If you need real-time responses or heavy, long processes, microservices deliver consistency.

Serverless → Potential cold starts
Serverless functions only run when triggered.
If a function hasn’t been used for a while, the cloud provider needs a moment to “wake it up.”
This is referred to as a start.

In the majority of cases it goes almost unnoticed. But for performance-critical systems, these tiny delays might matter.

Also, serverless functions have time limits—they’re not built for marathon tasks.

5. Deployment

Microservices → Complex pipelines
Deploying microservices is a bigger operation.
Multiple services, multiple repos, multiple CI/CD pipelines.
Testing and orchestration require discipline.

You gain control, but you also inherit complexity.

Serverless → Very fast deployments
Deploying serverless functions is almost too easy.

You update your code.
You push it.
The cloud deploys instantly.

No heavy infrastructure.
No complicated pipelines unless you choose to build them.

Perfect for rapid iteration.

6. Use Cases

Microservices → Large apps, long workflows
When developing a system—such as a marketplace, a CRM or a banking application—microservices provide you with reliability, modular design and greater oversight.

Long-running processes, strong business logic, or constant traffic?
Microservices shine here.

Serverless → Quick tasks, triggers, automation
Serverless is ideal when you need something done right now and only when necessary:

  • Sending emails
  • Processing images
  • Handling API requests
  • Running cron jobs
  • Integrating data pipelines
  • IoT event processing
  • Notifications

Serverless is unmatched when the job is brief and triggered by events.

So what does this signify?

  • Microservices provide flexibility. They also come with responsibility.
  • Serverless eliminates operational burden, but limits long-running tasks.
  • Microservices work for big, modular systems.
  • Serverless works for lightweight, event-triggered logic.

Both modern. Both are powerful. Just not interchangeable.

At What Times Should Microservices Be Utilized?

Use microservices while you’re building a huge software that’s developing quickly and desires room to evolve. Each provider can scale independently, making it simpler to address growing complexity.

They’re ideal when different teams manage different parts of the system. Each team can move at its own pace without blocking others.

Choose microservices when you need full control over your architecture—databases, deployments, integrations, everything.

They also work best for apps that expect heavy, steady traffic.

And in case you choose to decide on one-of-a-kind tools, languages, or frameworks for every service, microservices provide you with that freedom.

Great for eCommerce, SaaS, and business enterprise apps.

When Should You Use Serverless?

Use serverless whilst you want to build fast without managing servers or infrastructure. It’s ideal for groups that decide on simplicity and short releases.

Choose serverless for workloads that don’t run constantly—tasks that trigger based on events, schedules, or user actions. You pay only when your code runs.

It’s perfect for tasks with unpredictable or spiky site visitors for the reason that scaling happens automatically within the context.

If you need to reduce DevOps overhead and recognition purely on writing common sense, serverless removes the operational burden.

Great for APIs, automation duties, background jobs, prototypes, and lightweight packages that don’t require lengthy walking tactics.

Serverless or Microservices: Which Is Right for Your Business?

Ask yourself a few simple questions:

Looking for control and the ability to scale over time? → Microservices

If your product is evolving into an intricate system, microservices suit it better.

You govern the design, deployment, scaling and security of each service.

You have the ability to optimize performance, select databases and configure the system for future needs.

It’s more work in advance, but you get a sturdy, future-ready foundation.

Do you want to reduce operational work and save costs? → Serverless

Don’t want to manage servers, containers, or complex infrastructure?

Serverless lets you skip all that.

You write functions, the cloud runs them, and you only pay when they’re executed.

No idle server bills, no patching, no capacity planning.

Perfect when you want to stay lean and focus on features, not infrastructure.

Do you need fast deployment and minimal setup? → Serverless

Serverless is ideal when speed is your priority.

You can move from idea to live endpoint in hours, not weeks.

No clusters to configure. No orchestration layer to design.

Just code, deploy, run.

Do you expect your system to evolve into something massive? → Microservices

If you’re building something that would turn into a platform—more than one module, more than one group, global customers—microservices provide you with structural clarity.

You can break up obligations, isolate disasters, and scale services independently.
It’s like laying down city roads instead of village lanes.

Do you want both? → Use a Hybrid Approach

Here’s the nice twist: it’s not always microservices vs serverless.

You can blend them.

For example:

  • Core product → microservices
  • Background jobs, notifications, webhooks, image processing → serverless

Many modern architectures do exactly this.

  • Microservices handle the heavy, always-on parts.
  • Serverless handles event-driven, bursty, or auxiliary tasks.

Your Roadmap to Smarter Architecture

Not certain yet which method suits your business most?

That’s typical—technology choices need not be decided all at once. Start small. Run small experiments. Try deploying one or two capabilities with a serverless setup and see how speedy you could deliver. Or take a single function and convert it right into a microservice to apprehend the way it scales and integrates with the relaxation of your system.

Great architecture doesn’t happen overnight. It happens through exploration, testing ideas, learning how your system behaves, and choosing what genuinely supports your growth. You don’t need the trendiest tech. You need the tech that pushes your business forward.

If you’re planning to modernize your system, migrate to the cloud, or redesign your application architecture, consider hiring a specialized cloud computing services company.

Pooja Raut
Author
Pooja Raut

Pooja Raut is a Technical content writer at Arosys, a software development company helping businesses to go digital. Expertise in the software and tech field, she has a knack for turning complex concepts into engaging stories. She crafts content that connects with readers and drives impact.

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