

Cara, an AI-free social platform for artists, experienced explosive growth, going from 40,000 to 650,000 users in just a week. Their serverless backend, powered by Vercel Functions, incurred an unexpected cost of $98,280 due to the surge in usage. The sudden influx of artists migrating from Meta (due to dissatisfaction with Meta’s AI policies) caught them off guard.
As the demand for scalable and cost-effective solutions grows, serverless architecture has become a go-to choice for many businesses. However, this incident highlights the importance of understanding the nuances of serverless offerings.
Serverless doesn’t mean costless. Pay-per-use pricing can be expensive at scale. So what should be done to avoid this kind of situation? Well, you can start by monitoring your usage and setting budget thresholds. You also need to plan for the success of your platform by architecting for scalability from the start. We know that serverless can scale automatically, but it’s essential to anticipate sudden spikes. You can also implement testing to simulate real-world scenarios before production. But most of all, you need to assess your architecture periodically. Is serverless still the best fit for your platform?
Remember, serverless is a powerful tool, but understanding its intricacies is crucial. Let’s learn from Cara’s experience and build resilient, cost-effective and pragmatic solutions! Or consult us, Pragmatech Solutions PLC.
By: Yohannes Tewolde. 2024