The serverless buzzword refers to the ability of developers to deploy HTTP endpoints without worrying about infrastructure, making it possible to write 100 lines of code and test and ship it without incurring costs when the deployed code is not running. The industry is shifting towards specialized services that solve specific problems more efficiently than traditional approaches. To automate certain things when not in control of a service's source code, developers can use APIs and webhooks. Webhooks are HTTP requests sent by a service to a defined HTTP endpoint, allowing connection between services and combination of small functionality pieces into something bigger. When implementing a webhook flow with images in Contentful, a serverless function can be triggered to download the uploaded image, compose it with a company logo, and re-upload it as a watermarked version. The serverless framework is used to develop and deploy functions that run in the cloud, providing an abstraction layer on top of infrastructure providers. With the serverless framework, developers can create HTTP endpoints without jumping between different pages and settings in the AWS console. The deployment logs provide information on where the endpoint is deployed, allowing it to be opened in a browser and seen immediately. To handle Contentful webhooks, the payload definition includes JSON pointers, which make it possible to access the original payload and restructure it according to requirements. Image manipulation can be performed using the Jimp package, which performs image manipulations entirely in JavaScript, without the need for native dependencies. The use case demonstrates how serverless functions can combine different services, such as indexing data with Algolia, and provides a perfect fit for enriching the functionality of a single service or combining multiple services.