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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

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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

As discussions around AI "autonomous coworkers" accelerate, many industry projections assume that agents will soon operate alongside human staff in making decisions, taking actions, and managing tasks with minimal oversight. But a growing number of critics (including some of the developers building these systems) argue that the industry still has a long way to go to be able to treat AI agents like fully trusted teammates ...

Enterprise AI has entered a transformational phase where, according to Digitate's recently released survey, Agentic AI and the Future of Enterprise IT, companies are moving beyond traditional automation toward Agentic AI systems designed to reason, adapt, and collaborate alongside human teams ...

The numbers back this urgency up. A recent Zapier survey shows that 92% of enterprises now treat AI as a top priority. Leaders want it, and teams are clamoring for it. But if you look closer at the operations of these companies, you see a different picture. The rollout is slow. The results are often delayed. There's a disconnect between what leaders want and what their technical infrastructure can handle ...

Kyndryl's 2025 Readiness Report revealed that 61% of global business and technology leaders report increasing pressure from boards and regulators to prove AI's ROI. As the technology evolves and expectations continue to rise, leaders are compelled to generate and prove impact before scaling further. This will lead to a decisive turning point in 2026 ...

Cloudflare's disruption illustrates how quickly a single provider's issue cascades into widespread exposure. Many organizations don't fully realize how tightly their systems are coupled to thirdparty services, or how quickly availability and security concerns align when those services falter ... You can't avoid these dependencies, but you can understand them ...

If you work with AI, you know this story. A model performs during testing, looks great in early reviews, works perfectly in production and then slowly loses relevance after operating for a while. Everything on the surface looks perfect — pipelines are running, predictions or recommendations are error-free, data quality checks show green; yet outcomes don't meet the ground reality. This pattern often repeats across enterprise AI programs. Take for example, a mid-sized retail banking and wealth-management firm with heavy investments in AI-powered risk analytics, fraud detection and personalized credit-decisioning systems. The model worked well for a while, but transactions increased, so did false positives by 18% ...

Basic uptime is no longer the gold standard. By 2026, network monitoring must do more than report status, it must explain performance in a hybrid-first world. Networks are no longer just static support systems; they are agile, distributed architectures that sit at the very heart of the customer experience and the business outcomes ... The following five trends represent the new standard for network health, providing a blueprint for teams to move from reactive troubleshooting to a proactive, integrated future ...

APMdigest's Predictions Series concludes with 2026 AI Predictions — industry experts offer predictions on how AI and related technologies will evolve and impact business in 2026. Part 5, the final installment, covers AI's impacts on IT teams ...

APMdigest's Predictions Series concludes with 2026 AI Predictions — industry experts offer predictions on how AI and related technologies will evolve and impact business in 2026. Part 4 covers negative impacts of AI ...

APMdigest's Predictions Series concludes with 2026 AI Predictions — industry experts offer predictions on how AI and related technologies will evolve and impact business in 2026. Part 3 covers barriers and challenges for AI ...