Skip to main content

Can APM Really Handle Serverless? - Part 1

Chris Farrell

I remember the moment I heard about Serverless technology. On a bus back to the hotel at a conference, I overheard a CTO telling one of her developers about this "new" thing called Lambda. She said (and I'm paraphrasing): "so, the code is there, but it's not running anywhere — until you need it, then it appears, executes and disappears again."

I literally (YES, literally) got goosebumps. I had thought containers were cool, but this? O-M-G!!!

That night I had visions of millions of pieces of code just waiting in the wings for its time to be executed. Of course, the reality of today is that Serverless is a big part of modern application strategy, but not executing every workload like one might think.

There are three key reasons for that:

1. Architecting a serverless function into your operating applications isn't (or wasn't) the easiest thing in the world to do.

2. While the idea of serverless workload execution promises minimal cloud operating costs, the reality of serverless platform pricing is that sometimes it might be more.

3. The monitoring and performance management tools relied upon by IT shops around the globe couldn't handle serverless,

Now, you might be thinking "but wait. Many application monitoring tools struggled for years with containers, but that technology took off like a rocket."

And you would be right. That's one of the reasons I asked myself this important question: Can APM tools Manage Serverless Workloads?

And the answer is "No, not really."

No, don't go searching the web for serverless monitoring to look for a lack of functional claims. Every monitoring solution in the world claims support for monitoring serverless platforms (at least one of them).

What I mean by my answer is that the "APM" solutions we've come to love over the last 2 decades can't handle Serverless Functions or deliver the same performance and operational details that they deliver for other architectural constructs — including App Servers, Frameworks, Cloud, even Containers. And the reason is that they're methodologies for collecting performance data simply won't operate with the same characteristics as it would in persistent code.

To fully understand the nuanced differences between running an agent and capturing data from an API as it relates to monitoring, let's look at some of the operational costs of running serverless code.

Let's first look at what I call the Unicorn of Serverless application functionality — a seldomly called stateless functional piece of work — calculating a payment would be a good example. The inputs are the loan amount, the number of payments and the annual interest rate — the outputs are the interest payment and full payment. The function is called seldomly, requires very few resources to run (meaning little setup) and operates statelessly.

The Unicorn function can be loaded onto a serverless platform such as Lambda with zero permanent persistence (saves money). And a cold start doesn't hurt performance, so it can literally open up and shut down when you need it (also saving money). Now that we've established the perfect way to operate a serverless workload from a financial efficiency perspective, let's consider the three prerequisites:

■ Seldomly called — in the realm of efficient development, services that are never called are either deprecated or rolled into other functionality to make storage and operations as efficient as possible. Thus, a meaningful piece of code that is seldomly called is not really a thing anymore.

■ Requires few resources — again, in the realm of meaningful functions, the need for resources (memory, storage, I/O, etc.) is usually directly related to how important a piece of code is. Which maps back to the same decision point as seldomly called — a function that requires few resources is unlikely to operate on its own, instead being part of a shared service with active listeners, triggers, etc.

■ Is stateless — this is perhaps the least likely of scenarios to be present in today's microservice applications. Even plain old informational websites contain state of users — history, cache, setup, preferences, etc. The odds of having any kind of critical application service that doesn't have a personalized aspect to the workload is rare.

That's why the Unicorn Serverless operation is a rarity, and why cost isn't necessarily less anymore. Since (almost) every function requires some level of resources to use and/or a state — or access to state through a known memory location, two things become a concern.

First is performance — if you have to spin up resource libraries every time you want to run your piece of code, that can have a significant overhead, depending on how complex and resource intensive your piece of code is. I'm going to come back to this in a minute or two, so remember how just setting up your libraries can cause a relative performance impact of 50 — 500%.

Given the performance conundrum, the solution is to use functionality in the serverless platforms, like Lambda, to keep a warm pulse of libraries running so that there's no performance impact. This is referred to as a warm start serverless function.

Now, while this may address the performance issue, naturally it begins to detract from our cost savings. It's one thing to only pay for CPU cycles when you need to run the function — quite another when you're still ALWAYS paying for something, just a little less than you normally would.

Go to: Can APM Really Handle Serverless? - Part 2

Hot Topics

The Latest

Performance bottlenecks aren't uncommon when it comes to rolling out new technology, regardless of how capable or game-changing that technology might be. Every generation of new tech has encountered roadblocks that had to be overcome before it was truly able to shine. Virtualization forced organizations to rethink resource allocation, cloud transformation had us shift our focus toward scalability and elasticity, and microservices introduced entirely new challenges around observability and distributed systems. There's something different about AI, however ...

Consider a single order represented across order-management, execution, and settlement systems. Each database, message broker, and application may be online and processing its own records correctly. Yet the workflow has failed if related events arrive on different clocks, rely on inconsistent state, or cannot be reconciled before an operational decision must be made ...

AI now exists in almost every IT workflow. In a recent survey of more than 800 IT service professionals, all respondents indicated the use of AI in some form within their organization. But there's a growing paradox: if dashboards are clearing faster and alerts are resolved at unprecedented speed, why aren't IT service desks reporting lighter workloads? The research found that 71% of IT teams said their actual workload has remained flat or increased since adopting AI. This reality appears to contradict what we’ve been told about AI ...

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Can APM Really Handle Serverless? - Part 1

Chris Farrell

I remember the moment I heard about Serverless technology. On a bus back to the hotel at a conference, I overheard a CTO telling one of her developers about this "new" thing called Lambda. She said (and I'm paraphrasing): "so, the code is there, but it's not running anywhere — until you need it, then it appears, executes and disappears again."

I literally (YES, literally) got goosebumps. I had thought containers were cool, but this? O-M-G!!!

That night I had visions of millions of pieces of code just waiting in the wings for its time to be executed. Of course, the reality of today is that Serverless is a big part of modern application strategy, but not executing every workload like one might think.

There are three key reasons for that:

1. Architecting a serverless function into your operating applications isn't (or wasn't) the easiest thing in the world to do.

2. While the idea of serverless workload execution promises minimal cloud operating costs, the reality of serverless platform pricing is that sometimes it might be more.

3. The monitoring and performance management tools relied upon by IT shops around the globe couldn't handle serverless,

Now, you might be thinking "but wait. Many application monitoring tools struggled for years with containers, but that technology took off like a rocket."

And you would be right. That's one of the reasons I asked myself this important question: Can APM tools Manage Serverless Workloads?

And the answer is "No, not really."

No, don't go searching the web for serverless monitoring to look for a lack of functional claims. Every monitoring solution in the world claims support for monitoring serverless platforms (at least one of them).

What I mean by my answer is that the "APM" solutions we've come to love over the last 2 decades can't handle Serverless Functions or deliver the same performance and operational details that they deliver for other architectural constructs — including App Servers, Frameworks, Cloud, even Containers. And the reason is that they're methodologies for collecting performance data simply won't operate with the same characteristics as it would in persistent code.

To fully understand the nuanced differences between running an agent and capturing data from an API as it relates to monitoring, let's look at some of the operational costs of running serverless code.

Let's first look at what I call the Unicorn of Serverless application functionality — a seldomly called stateless functional piece of work — calculating a payment would be a good example. The inputs are the loan amount, the number of payments and the annual interest rate — the outputs are the interest payment and full payment. The function is called seldomly, requires very few resources to run (meaning little setup) and operates statelessly.

The Unicorn function can be loaded onto a serverless platform such as Lambda with zero permanent persistence (saves money). And a cold start doesn't hurt performance, so it can literally open up and shut down when you need it (also saving money). Now that we've established the perfect way to operate a serverless workload from a financial efficiency perspective, let's consider the three prerequisites:

■ Seldomly called — in the realm of efficient development, services that are never called are either deprecated or rolled into other functionality to make storage and operations as efficient as possible. Thus, a meaningful piece of code that is seldomly called is not really a thing anymore.

■ Requires few resources — again, in the realm of meaningful functions, the need for resources (memory, storage, I/O, etc.) is usually directly related to how important a piece of code is. Which maps back to the same decision point as seldomly called — a function that requires few resources is unlikely to operate on its own, instead being part of a shared service with active listeners, triggers, etc.

■ Is stateless — this is perhaps the least likely of scenarios to be present in today's microservice applications. Even plain old informational websites contain state of users — history, cache, setup, preferences, etc. The odds of having any kind of critical application service that doesn't have a personalized aspect to the workload is rare.

That's why the Unicorn Serverless operation is a rarity, and why cost isn't necessarily less anymore. Since (almost) every function requires some level of resources to use and/or a state — or access to state through a known memory location, two things become a concern.

First is performance — if you have to spin up resource libraries every time you want to run your piece of code, that can have a significant overhead, depending on how complex and resource intensive your piece of code is. I'm going to come back to this in a minute or two, so remember how just setting up your libraries can cause a relative performance impact of 50 — 500%.

Given the performance conundrum, the solution is to use functionality in the serverless platforms, like Lambda, to keep a warm pulse of libraries running so that there's no performance impact. This is referred to as a warm start serverless function.

Now, while this may address the performance issue, naturally it begins to detract from our cost savings. It's one thing to only pay for CPU cycles when you need to run the function — quite another when you're still ALWAYS paying for something, just a little less than you normally would.

Go to: Can APM Really Handle Serverless? - Part 2

Hot Topics

The Latest

Performance bottlenecks aren't uncommon when it comes to rolling out new technology, regardless of how capable or game-changing that technology might be. Every generation of new tech has encountered roadblocks that had to be overcome before it was truly able to shine. Virtualization forced organizations to rethink resource allocation, cloud transformation had us shift our focus toward scalability and elasticity, and microservices introduced entirely new challenges around observability and distributed systems. There's something different about AI, however ...

Consider a single order represented across order-management, execution, and settlement systems. Each database, message broker, and application may be online and processing its own records correctly. Yet the workflow has failed if related events arrive on different clocks, rely on inconsistent state, or cannot be reconciled before an operational decision must be made ...

AI now exists in almost every IT workflow. In a recent survey of more than 800 IT service professionals, all respondents indicated the use of AI in some form within their organization. But there's a growing paradox: if dashboards are clearing faster and alerts are resolved at unprecedented speed, why aren't IT service desks reporting lighter workloads? The research found that 71% of IT teams said their actual workload has remained flat or increased since adopting AI. This reality appears to contradict what we’ve been told about AI ...

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...