Serverless platforms like Azure Functions allow developers to focus on business logic by managing infrastructure tasks such as server provisioning and scaling. Azure Functions support multiple programming languages, integrate with other Azure services, and offer monitoring through Application Insights while enabling cost-effective, on-demand code execution. In a practical example, a serverless auto yard management application is built using Azure Functions for business logic and Azure SQL for data storage, with deployment automated through CircleCI. The project is structured to facilitate clarity and modularity, using a directory for each function and shared utilities for database connections. Azure CLI commands are utilized to set up the necessary resources, and the application is configured to automatically deploy through CircleCI, which manages continuous integration and deployment processes. The tutorial emphasizes the importance of secure configurations, such as connection strings and environment variables, and suggests potential improvements like using API management for authentication and automating schema changes with tools like Flyway or Liquibase.