Cloud computing has undergone a revolutionary paradigm with serverless computing, it can significantly optimize costs during application development and deployment. Instead of the traditional server based model, serverless computing abstracts infrastructure management completely, leaving developers to only focusing on code execution, from provisioning and maintaining servers. Pay-as-you-go pricing model of this model charges users only for the actual compute resources consumed during execution without charging for the idle server time. Therefore, serverless computing can save companies a lot of money, especially when applied on applications with variable or unpredictable workloads. This allows businesses to scale resources automatically based on demand, which means that resources can be used efficiently and that overprovisioning or underutilization of resources, which is often the case with traditional server based environments, do not exist. High levels of elasticity can be achieved through Serverless platforms like AWS Lambda, Azure Functions and Google Cloud Functions which allows organizations to scale up during peak loads and not have to pay for additional resources in off peak periods. In addition, serverless computing reduces operational overhead as it does not require system administration tasks such as patching, scaling and infrastructure management. While serverless computing has a lot to gain from serverless computing regarding potential for cost savings, managing complex workflows or maintaining stateful applications may present challenges. However, if used correctly, it can result in faster, more agile and cheaper application development that can create higher value for businesses.