You're right, the "long running daemon" is the serverless platform, i.e. the process that hosts the serverless applications (microflows). In case of public clou

You're right, the "long running daemon" is the serverless platform, i.e. the process that hosts the serverless applications (microflows). In case of public cloud providers like AWS, there is ample spare capacity, so hosting (and charging for) microflows in addition to other workloads makes economic sense. With respect to the extra burst capacity -- in theory there should be excess capacity available, in practice it varies depending on your cloud provider. The lack of the excess capacity is usually a financial, not an engineering problem. The cloud provider may offer SLAs that ensure that a customer gets credit in case if some requests haven't been serviced as expected.