Imagine that you need to host an infrequently used service, but paying for a dedicated server that is always up and running is proving to be costly or inefficient to maintain. Serverless architectures might be what you are looking for. The name serverless is a misnomer since all client requests are indeed handled by servers, which are dynamically provisioned for the lifetime of the request.
A more appropriate term would be Function as a Service (FaaS), as these platforms support execution of an application logic like a small Python function but does not store any state. Building an application composed of such functions would be quite similar to the microservices architecture discussed earlier.
Typically, you only pay for the milliseconds ...