Serverless architecture has become increasingly popular as businesses migrate away from traditional infrastructure management, but it's essential to understand its limitations and benefits before making the switch. Serverless is not a one-size-fits-all solution, ideal for event-driven architectural patterns where applications are divided into small, loosely coupled components aligned to business needs. It offers advantages such as automatic scaling, high availability, and cost-effectiveness, but also presents unique challenges like observability and security. The pricing model is execution-based, with costs varying depending on the number of requests and duration, while observability requires careful instrumentation to track performance across the entire ecosystem. By understanding these key aspects, businesses can make informed decisions about whether serverless architecture is right for them.