By Dheeraj Chaudhary

As the cloud computing landscape evolves, serverless computing is emerging as a transformative force, reshaping how businesses develop, deploy, and manage applications. With India poised to become a major player in digital innovation, this paradigm shift is not just timely but essential.

According to market projections, the Indian serverless computing sector is expected to generate revenue of USD 3,440 million by 2030, growing at a CAGR of 17.9% from 2025 to 2030. This growth is driven by the urgent need for scalable, agile, and cost-efficient infrastructure solutions across industries. But before we delve into how serverless computing is set to revolutionise cloud solutions, it’s essential to understand what it is and how it works.

An introduction to serverless computing

Contrary to its name, serverless computing doesn’t mean there are no servers involved. Instead, it refers to a cloud computing model where the complexities of server management, such as provisioning, scaling, and maintenance, are handled entirely by the cloud provider. Developers can focus solely on writing and deploying code, and are charged based on actual compute consumption, rather than pre-allocated units of infrastructure. It’s a model built for simplicity, flexibility, and efficiency.

In fact, some platforms in the cloud segment are already leveraging serverless frameworks to offer businesses event-driven architectures that respond instantly to demand. This as-used model reduces infrastructure overhead while accelerating the time-to-market for new products and services.

A cost-effective way to go

One of the most compelling advantages of serverless computing is its potential for significant cost savings. Traditional cloud models often require businesses to over-provision resources to handle peak loads, leading to underutilization and unnecessary expenses. Serverless, on the other hand, follows a pay-as-you-go model. Organisations pay only for the execution time and memory used by their functions; no more, no less.

This billing model makes serverless particularly appealing to startups, small businesses, and enterprise teams working with unpredictable or intermittent workloads. It also eliminates idle capacity costs and allows organisations to scale effortlessly, without the burden of manual intervention.

Where performance meets security

With India’s increasing digital outreach across Tier 2 and Tier 3 cities, edge computing is becoming an essential part of the cloud strategy. The convergence of serverless and edge computing is revolutionising how and where compute functions are executed. Lightweight serverless logic can now run at edge locations, closer to the end user, thereby enabling ultra-low latency, enhanced personalisation, and better responsiveness.

Functions such as user authentication, content caching, and geo-specific routing can be performed within milliseconds at edge points. This leads to faster performance, smoother user experiences, and significantly reduced backend loads. Moreover, executing code at the edge adds a crucial layer of security by filtering malicious requests before they reach central servers.

Enabling agility and innovation

Beyond performance and cost, serverless computing empowers development teams to move faster. The modular, event-driven architecture aligns perfectly with agile methodologies, allowing developers to break applications into smaller, manageable functions. This promotes reusability and cleaner code and supports rapid iteration and deployment.

In India’s diverse and fast-evolving regulatory environment, serverless computing offers a strategic advantage. Developers can deploy functions that are compliant with local data governance norms and easily integrate with regional cloud infrastructure. Tasks like access token validation, dynamic API response generation, and caching optimisation become significantly easier to implement and scale.

Rethinking enterprise strategy

Serverless is far more than a technical solution. It’s a shift in mindset. It calls for organisations to think in terms of services rather than servers, workflows rather than infrastructure. It places a premium on business outcomes rather than resource provisioning. In essence, it frees up valuable time and resources, allowing teams to focus on building innovative solutions instead of managing backend complexities.

For CIOs and CTOs spearheading digital transformation efforts at their respective organisations, serverless computing offers the opportunity to drive agility, reduce operational overhead, and scale intelligently. It is becoming a strategic enabler in sectors ranging from fintech and e-commerce to public services and healthcare.

The road ahead

As India continues to invest in digital infrastructure and cloud-native capabilities, serverless computing will play a crucial role in shaping the future of application architecture. The model’s alignment with scalability, speed, and cost-effectiveness makes it a natural fit for the ambitions of a digitally empowered India.

Cloud-native development, edge computing, and artificial intelligence are increasingly being integrated with serverless platforms, forming a new technological trifecta. This fusion is giving rise to a generation of intelligent applications that are fast, resilient, and location-aware. For enterprises looking to stay ahead in a hyper-competitive landscape, the adoption of serverless computing is no longer a futuristic choice; it’s a strategic necessity.

(The author is Dheeraj Chaudhary, Director of Technology at VergeCloud, and the views expressed in this article are his own)