Pulumi facilitates the creation of cloud applications that integrate containers, serverless functions, and data services, exemplified by a Colada app that processes video thumbnails. In this setup, a Lambda function triggers when a video uploads to an S3 bucket, initiating an AWS Fargate task that uses FFmpeg to extract a thumbnail. Another Lambda function logs the creation of the thumbnail. Users can build this application entirely in code using Pulumi, configuring infrastructure with JavaScript, and employing Docker for container management. The process, inspired by a Serverless, Inc. blog post, involves creating a Pulumi project, setting up AWS and Docker environments, and deploying the app with Pulumi's CLI, which automates the provisioning of resources like an ECR repository. Once deployed, users can monitor logs with Pulumi commands and clean up resources using Pulumi destroy. The method highlights Pulumi's ability to blend containers and serverless functions, offering flexibility without the need to choose between serverless and containerized approaches.