Microservices and microservices architecture have become the standard in modern software development due to their ability to meet the demands for fast, flexible, and scalable digital services. These small, modular units of software enable developers to build applications in smaller, manageable pieces rather than maintaining a cumbersome monolithic codebase. A 2020 survey highlighted that 61% of organizations have adopted microservices with 92% reporting success. This architecture allows developers to independently update, scale, and secure each service, reducing the risk of single points of failure. Microservices architecture integrates well with DevOps practices, facilitating continuous integration and delivery, and is supported by container-based orchestration platforms like Kubernetes and Docker, as well as cloud-native services such as AWS Lambda and Azure Functions. While the architecture offers benefits like flexibility, resource efficiency, and reliability, challenges such as complexity, observability, and cultural shifts need to be addressed. Effective management involves automation and observability solutions like those provided by Dynatrace, which uses AI for enhanced microservices monitoring and management.