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> Serverless is purely about CAPEX, vs OPEX. What it's really about is managing cash flow and not spending your entire round until your team has some inkling a
by tomnipotent 5y ago
> Serverless is purely about CAPEX, vs OPEX.
What it's really about is managing cash flow and not spending your entire round until your team has some inkling as to what it costs for the revenues it's bringing in. This is considerably easier to do with cloud vendors, serverless or not.
It's also about operational velocity, and supporting engineering teams in getting things done without planning overhead that's almost always going to be wrong. Serverless is a tool, and if used right can significantly reduce costs. I can use a hammer to build a house, but I can also smash my fingers with it. Tools be be used improperly.
So once the company is mature, such that meaningful future predictions can be made from past data, then it finds itself in a position to make significant upfront outlays in response to current or future business needs. This usually involves the CFO & FP&A team building a model to see how such a change would impact the balance sheet over the next X years. If the numbers add up, it would absolutely make sense to spend the money. But that's not always the case, even for companies at scale.