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AZ-900Chapter 45 of 138Objective 1.2

Serverless Computing Concepts

This chapter covers serverless computing as a broader concept, building on the specific Azure Functions chapter with the general principles behind serverless architecture. AZ-900 tests this under objective 1.2.

7 min read
Beginner
Updated Aug 20, 2026
Reviewed by Johnson Ajibi· Senior Network & Security Engineer · MSc IT Security

A simple way to picture Serverless Computing Concepts

Paying for Electricity Only While the Light Is On

Imagine paying for electricity only for the exact moments a light is switched on, with nothing charged while it's off, and no need to think about the power plant generating that electricity at all. Serverless computing works similarly for code: you pay only while your code is actually executing, and you never have to think about or manage the underlying servers running it.

How It Actually Works

What serverless computing means

Serverless computing is an approach where the cloud provider fully manages the underlying infrastructure required to run code, automatically allocating resources as needed and scaling down (often to zero) when not in use. The customer focuses purely on their code, not on provisioning or managing servers.

Key characteristics

No server management: the customer never provisions or configures servers directly.

Automatic scaling: resources scale to match demand automatically, including scaling down to zero when idle.

Consumption-based billing: cost is generally tied to actual execution, not to reserved, always-on capacity.

Azure Functions as the primary example

Azure Functions (covered in its own dedicated chapter) is Azure's flagship serverless compute example, but the broader serverless concept can also apply to certain other services that similarly abstract away infrastructure management.

How it fits the broader cloud service model spectrum

Serverless computing represents a further point along the IaaS-to-PaaS-to-SaaS spectrum (covered in the service models chapter) toward abstracting away infrastructure concerns — even more so than typical PaaS, since the customer doesn't think about server capacity at all, even conceptually.

Walk-Through

1

Identify a suitable, event-driven workload

Serverless computing fits workloads that run in response to specific events, rather than continuously active applications.

2

Write code without provisioning infrastructure

The customer writes and deploys code without needing to provision or configure any underlying servers.

3

Let the platform scale automatically

The serverless platform automatically allocates resources when needed and scales down when idle, without manual intervention.

What This Looks Like on the Job

A company processing occasional, unpredictable bursts of data uses a serverless approach so they're never paying for idle, always-on infrastructure between those bursts — resources are allocated automatically only when there's actual work to do.

How AZ-900 Actually Tests This

Objective 1.2 expects candidates to understand serverless computing as a broader concept — no server management, automatic scaling, consumption-based billing — with Azure Functions as the primary Azure example.

A common wrong answer is thinking serverless means literally no servers exist — servers are still involved, just not managed by the customer.

Stable terms: serverless computing. Memory trick: serverless = the provider fully handles infrastructure, scaling automatically (including to zero), billed based on actual execution.

Key Takeaways

Serverless computing means the cloud provider fully manages underlying infrastructure, automatically allocating and scaling resources.

Key characteristics include no server management, automatic scaling (including to zero), and consumption-based billing.

Azure Functions is Azure's primary example of serverless compute.

Watch Out for These

Mistake

Serverless computing means there are no servers at all.

Correct

Servers are still involved behind the scenes — 'serverless' means the customer doesn't provision or manage them; the provider handles that automatically.

Mistake

Serverless computing is a completely separate concept from PaaS.

Correct

Serverless computing extends the same general idea behind PaaS — abstracting away infrastructure — even further, so the customer doesn't think about server capacity at all.

Frequently Asked Questions

What does serverless computing mean?

It means the cloud provider fully manages the underlying servers needed to run code, automatically allocating resources as needed and scaling down when idle — the customer focuses purely on their code, not infrastructure.

Is Azure Functions the only serverless service in Azure?

It's the primary and most commonly cited example, but the broader serverless concept — automatic scaling, no server management, consumption-based billing — can apply to certain other Azure services that similarly abstract away infrastructure.

Terms Worth Knowing

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