The 2025 State of Containers and Serverless report by Datadog highlights significant trends in cloud infrastructure, revealing how organizations are leveraging container orchestration platforms and serverless offerings to optimize workloads for efficiency, cost, and simplicity. With increasing adoption of GPUs to enable AI workloads, the report emphasizes the importance of planning for greater demand on specialized compute resources like FPGAs and ASICs. It also stresses the need for fine-tuning autoscaling to improve efficiency and advises selecting the best compute model—whether serverless, managed container platforms, or self-managed Kubernetes clusters—for each workload to balance performance, cost, and operational simplicity. The report underscores the growing interest in Arm-based compute for its cost efficiency and performance benefits, and highlights how Datadog's comprehensive monitoring tools can facilitate these optimizations by providing visibility into workload performance and resource utilization. With Datadog, organizations can continuously refine their compute strategies, ensuring workloads are placed in the most efficient environments while tracking costs and performance metrics.