It typically means the unit of management (and billing) are not physical constructs (or abstractions over them). So no servers/instances/nodes etc. You manage

It typically means the unit of management (and billing) are not physical constructs (or abstractions over them). So no servers/instances/nodes etc. You manage purely logical containers like databases and tables, the serverless service takes care of the logical to physical mapping. This lets them get better density, manage patching scaling, and a ton of other things