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Azure Serverless Computing - Architecture, Advantages and Tools

Gursimran Singh | 18 April 2025

Azure Serverless Computing - Architecture, Advantages and Tools
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Serverless computing enables users to build their applications faster by removing the need for them to handle the infrastructure. When you use this technology, you can take your mind off infrastructure-related things. It is beneficial for managing real-life apps, too. Server computing is invisible to the user but does its tasks efficiently. The user has to pay only for the resources they consume while running the application, which means users do not pay when the app is idle.

What is Serverless Computing? 

Serverless computing enables developers to build applications faster by eliminating the need for them to manage infrastructure. With serverless applications, the cloud service provider automatically provisions, scales, and manages the infrastructure required to run the code.

In understanding the definition of serverless computing, it’s important to note that servers are still running the code. The serverless name comes from the fact that the tasks associated with infrastructure provisioning and management are invisible to the developer. This approach enables developers to increase their focus on the business logic and deliver more value to the core of the business. Serverless computing helps teams increase their productivity and bring products to market faster, and it allows organizations to better optimize resources and stay focused on innovation.

What does Serverless Computing do?

Before we start with Microsoft Azure Serverless Computing, we start with the basics. What is Serverless Computing? It is quite an excellent way to create your application. It's of great help to developers as it allows the user to innovate the code, whereas Serverless computing takes care of everything related to servers. It can accommodate any flexibility to fulfil the needs of developers.


Read More about What Serverless Computing and Architectures

Which are the Best Servers in Serverless Computing?

The following are the best servers for serverless computing:
  1. AWS Lambda: AWS Lambda was first introduced in November 2014. It is an event-driven, serverless computing platform developed by Amazon.com as a part of Amazon Web Services. AWS is a computing service that runs code in response to events and automatically manages the computing resources required by that code. 

  2. Microsoft Azure: Microsoft Azure is mainly referred to as Azure. Microsoft developed a cloud computing service for testing, building, deploying, and managing applications and services through Microsoft-managed data centres.

What's the Benefit of using Serverless Computing?

Listed below are the top benefits of Serverless Computing:
  • Avoid the burden of managing servers. 

    With the help of this technology, you no longer have to waste time managing servers; you can devote more time to business logic than administrative tasks. This results in deploying code and watching it run efficiently.

  • Scale according to your needs 

    It can scale from none to thousands of concurrent functions within seconds, which is helpful in near-real-time apps.

  • Only pay for resources you use
    This computing allows you to pay for the services you've used by running your code; allocation of the services happens as soon as the deployment finishes. You pay only for the resources used by your app.

Why choose Azure Serverless Computing?

It helps the user build a serverless app, helps the developer focus only on business goals and make an efficient app, and allows them to deploy the app faster in the market.

  • Helps Boost Productivity

    Azure Serverless Computing provides Local debugging in Visual Studio, Visual debug history, deployment slot, and many more. A developer can use these to maximise their efficiency.

  • Helps create endless Connections

    Azure can accommodate Modern apps of any kind by stitching together many functionalities from various sources.

  • Helps Develop Intelligent Apps Azure has built-in intelligence that allows all developers who want their apps to be innovative. Azure can easily enable the user's code to use machine learning and cognitive services.

Security And Access Control 

Azure Active Directory provides developers with the ability to gain access to resources securely and manage their serverless apps.

A few more benefits are as follows

  • Cloud Messaging

  • Workflow orchestration

  • API management

  • Analytics

  • Intelligence

Microsoft Azure Serverless Architecture 

Azure Serverless Architecture

Fig 1: Microsoft Serverless Architecture 

1. Browser (Client)

  • The user initiates a request from the browser.

  • Before accessing the app, Multi-Factor Authentication (MFA) is applied via Azure AD or similar service.

  • The request is passed through a Content Delivery Network (CDN) to improve performance and security.

2. Web Apps (Frontend/Backend)

  • After authentication, the user interacts with Web Apps hosted on Azure App Service (a serverless Paas).

  • These apps handle front-end UI and some backend logic.

3. Backend Services (Data + Cache)

Web apps interact with backend services like:

  • Search: Azure Cognitive Search or similar for fast search capabilities.

  • SQL DB: Azure SQL Database for structured data storage.

  • Blob Storage: Stores unstructured data like images, videos, documents.

  • Redis Cache: Azure Cache for Redis improves performance with in-memory data storage.

4. Queue Storage

  • The web apps place tasks or messages into Azure Queue Storage.

  • This ensures asynchronous processing and decouples frontend from backend logic.

5. Functions

  • Azure Functions (FaaS) are triggered by queue messages.

  • They execute backend logic (e.g., payment processing, data transformation) in a scalable, event-driven manner.

6. Third Party Payment (Pretend)

  • Functions may call external services like third-party payment providers (represented here as “pretend”) to complete transactions or other operations.

What are the Advantages of Azure Serverless Computing?

Below are the advantages of Microsoft Azure:
  1. Increase developer velocity
    Microsoft Azure Serverless helps reduce the time spent on tasks unrelated to the business's core by allowing developers to not think much about infrastructure provisioning and management. It helps deploy the function/application faster with its developer-friendly APIs, ready-to-use machine learning, low-code/no-code services, and cognitive models.

  2. Boost Team Performance
    It helps improve the team's agility and performance by offering a fully managed platform to build, deploy, and operate applications. It also helps manage the applications by providing intelligent services for monitoring and analysis tools provided by Azure.

  3. Improve Organisational Impact
    Azure's solutions help accelerate time to market and clear the path to innovation and new revenue opportunities. It also helps reduce the total cost of infrastructure and ownership and minimise risk through intelligent security management and advanced threat protection.



Developer Tools and Services Provided by Microsoft Azure 

Listed below are the tools and services Azure offers.

Computation Services 

  • Serverless Kubernetes

    Azure Serverless helps provide pods elastically in container instances that kick start in seconds without managing additional compute resources. It provides services for orchestration capabilities of AKS (Azure Kubernetes Service) and AKS virtual nodes to create serverless. Both of these are made using the open-source Virtual Kubelet project. It helps with event-driven auto-scaling to users' AKS clusters by adding KEDA. Download the use case AIOps for Monitoring Kubernetes and Serverless.

  • Serverless functions
    It helps execute code in any language. The user can scale the deployed application on demand and pay only for the time the code is executed or for the time the services are being used by the application implemented.

  • Serverless Application Environments
    Azure App Service helps run and scale any API application on the platform of the user's choice in a fully managed environment.

Workflow and Integration 

  • Serverless Workflow Orchestration
    It is helpful to integrate data and apps instead of writing complex glue code. Uses Azure Logic Apps to create serverless workflows

  • Serverless API Management
    Azure serverless enables Azure API Management to publish, secure, transform, maintain, and monitor APIS. 

  • Serverless Messaging
    It is used to simplify event-based application scenarios with Azure Event Grid.

Azure DevOps Services

Enable DevOps Solutions on Azure using Azure Pipelines and Azure Artefacts. Explore our Azure DevOps Services

DevOps and Developer Tools 

  • CI/CD for Serverless
    Azure DevOps provides unlimited, cloud-hosted private git repos. It offers many more functions, including adding automatic package management and so on.

  • App Development Tools
    It provides tools to build, run, and debug serverless applications using Azure's developer tools. 

AI & Machine Learning for Serverless 

  • Cognitive Computing
    It helps to enable user-serverless apps to see, hear, speak, understand, and interpret users' needs by using Azure Cognitive Services through natural communication methods.

  • Conversation Bots
    Azure Bot Service helps build intelligent bots that interact naturally with users through various channels, such as text/SMS, Skype, Microsoft Teams, Slack, Office 365, and Twitter.

Database Services 

Storage Services 

  • Azure Serverless Storage
    It can be used for massively scalable storage of unstructured data. 

Monitoring Services 

  • Azure Serverless Monitoring
    As serverless eliminates the traditional infrastructure, debugging Azure provides the right instrumentation. Azure Monitor helps gain observability to the user into their serverless apps.

Analytics Serverless 

  • Azure Serverless Analytics
    Azure supports running massive parallel real-time analytics on multiple streams of data, including IoT, using Azure Stream Analytics. The Data is processed on demand, and the user pays per job. Building Real-time dashboards is quick with Microsoft Power BI for live command and control views.


Explore here - The Complete Guide to AWS Serverless Computing


AWS Vs Azure Serverless

Feature/Aspect 

AWS (Amazon Web Services) 

Azure (Microsoft Azure) 

Core Serverless Offering 

AWS Lambda 

Azure Functions 

Cold Start Time 

Low (optimized with provisioned concurrency) 

Moderate to low (improved with Premium Plan) 

Supported Languages 

Node.js, Python, Java, Go, Ruby, .NET, PowerShell, Custom Runtime 

C#, JavaScript, Python, Java, PowerShell, TypeScript, Custom Handlers 

Execution Duration Limit 

15 minutes 

60 minutes (with Premium Plan) 

Scaling 

Automatic, nearly unlimited 

Automatic, with better scaling in Premium Plan 

Integrated Services 

Deep integration with AWS ecosystem (DynamoDB, S3, SNS, etc.) 

Deep integration with Azure services (Blob Storage, Cosmos DB, etc.) 

Trigger Types 

Over 200 sources, including API Gateway, S3, DynamoDB, EventBridge 

HTTP, Event Grid, Service Bus, Cosmos DB, Blob Storage 

Monitoring & Debugging 

CloudWatch, X-Ray 

Azure Monitor, App Insights 

Pricing Model 

Pay-per-use (invocations, duration, memory) 

Pay-per-use (executions, duration), with Premium Plans 

Development Tools 

AWS SAM, Serverless Framework, Cloud9 

Visual Studio, Azure CLI, VS Code Extensions 

Deployment Options 

SAM, CloudFormation, Terraform 

ARM Templates, Bicep, Azure DevOps 

Security & IAM 

IAM roles and policies 

Azure RBAC, Managed Identities 

Local Testing 

AWS SAM CLI, LocalStack 

Azure Functions Core Tools 

The Road Ahead in Serverless Computing

Microsoft Azure Serverless Computing delivers more value to businesses by reducing the time, money, and resources spent on infrastructure-related needs. By using fully managed Azure serverless solutions, the company gains developers increased productivity, optimal resource use, and faster innovation.

Next Steps in Azure Serverless Computing 

Talk to our experts about implementing a compound AI system with Azure Serverless Computing. Discover how industries and departments leverage Agentic Workflows and Decision Intelligence to become decision-centric. Utilize AI to automate and optimize IT support and operations, enhancing efficiency and responsiveness.

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