What type of environment does serverless architecture fundamentally rely upon?

Serverless architecture fundamentally relies on cloud-based infrastructure because it abstracts away the management of servers and allows developers to focus more on writing code and building applications without worrying about the underlying infrastructure. In a serverless model, the cloud provider automatically manages server allocation, scaling, and maintenance, which enables applications to automatically scale with demand without the need for explicit provisioning of servers by the developer. This environment is designed to optimize resource usage and reduce operational overhead, as developers only need to deploy functions or microservices, which are executed in response to events and automatically scaled as necessary. This agility and efficiency are at the core of what makes serverless architectures appealing for modern applications, particularly in dynamic and scalable cloud computing environments.