Serverless architecture can be difficult to observe and debug due to its event-based nature, which makes it challenging to connect events and understand how they impact each other. This leads to issues with security configuration, cold starts, and observability, particularly when dealing with high-velocity data from multiple cloud services. To address these challenges, structured logs and AWS X-Ray integration can provide valuable insights into the application's underlying components, but it is essential for developers to plan for observability as they write their code, making sure that only relevant details are left to the vendor to handle.