The business case for serverless

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While serverless is typically championed as a way to reduce costs and scale massively on demand, there is one extraordinarily compelling reason above all others to adopt a serverless-first approach: it is the best way to achieve maximum development velocity over time. It is not easy to implement correctly and is certainly not a cure-all, but, done right, it paves an extraordinary path to maximizing development velocity, and it is because of this that serverless is the most under-hyped, under-discussed tech movement amongst founders and investors today.

The case for serverless starts with a simple premise: if the fastest startup in a given market is going to win, then the most important thing is to maintain or increase development velocity over time. This may sound obvious, but very, very few startups state maintaining or increasing development velocity as an explicit goal.

“Development velocity,” to be specific, means the speed at which you can deliver an additional unit of value to a customer. Of course, an additional unit of customer value can be delivered either by shipping more value to existing customers, or by shipping existing value—that is, existing features—to new customers.

For many tech startups, particularly in the B2B space, both of these are gated by development throughput (the former for obvious reasons, and the latter because new customer onboarding is often limited by onboarding automation that must be built by engineers). What does serverless mean, exactly? It’s a bit of a misnomer. Just as cloud computing didn’t mean that data centers disappeared into the ether — it meant that those data centers were being run by someone else, and servers could be provisioned on-demand and paid for by the hour — serverless doesn’t mean that there aren’t any servers.

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