Serverless architecture` offers a cost-effective way for developers to focus on building applications without worrying about infrastructure management. By abstracting away server management and scaling concerns, serverless promises increased development efficiency and potential cost savings. However, before adopting this paradigm shift, it's crucial to understand the tradeoffs and costs associated with serverless architecture. The primary cost factors for serverless solutions typically include compute resources, memory or storage allocation, and data transfer. Serverless can be cost-effective in certain scenarios, such as low and variable workloads, short-lived tasks, and high burst traffic, but may not be the optimal choice for predictable workloads with steady demand. To optimize costs in serverless architecture, developers must ensure proper optimizations are in place, considering best practices for implementation. Ultimately, understanding the cost model, comparing it with provisioned infrastructure, and implementing cost optimization strategies can help developers make an informed decision that aligns with their development goals and budget.