Topic Web and software engineering

Cloud-native development: benefits, challenges and fit

The short answer

Cloud-native development means building software to run on cloud infrastructure from day one: applications in containers or serverless functions, managed databases, automated deploys and built-in monitoring. It pays off when traffic swings, releases are frequent and several teams ship independently. For a small product with steady traffic, a simpler managed setup is often the better fit.

Written by

Siddharth Kajaria, Founder and CEO

Published

Updated

Reading time

10 min read

A gantry crane lifts a red container onto a cargo ship whose stacks are uneven and have gaps.
In this post10 min read
  1. What is cloud-native development?
  2. The building blocks of a cloud-native system
  3. What are the main benefits and biggest challenges of cloud-native development?
  4. Which developer tools make cloud-native development feel local?
  5. Does your product need to be cloud-native?
  6. How we’d decide hosting and architecture for a new web app
  7. A cloud-native starting checklist

Key takeaways

What is cloud-native development?

Cloud-native development is a way of building applications so that they are designed for the cloud rather than moved onto it later. The Cloud Native Computing Foundation’s definition (CNCF, 2018) describes it as building and running scalable applications in dynamic environments such as public, private and hybrid clouds, and names containers, service meshes, microservices, immutable infrastructure and declarative APIs as examples of the approach.

In practice, that boils down to a few habits:

  • Package the app the same way everywhere. A container image (or a serverless function) runs the same on a laptop, in testing and in production.
  • Let managed services do the undifferentiated work. Databases, queues, file storage, search and authentication come from the cloud provider or a specialist service, not from servers you patch yourself.
  • Describe infrastructure as code. Servers, networks and permissions live in version-controlled files, so environments can be rebuilt and reviewed like any other change.
  • Deploy automatically and often. Every change goes through the same pipeline of build, test and release.
  • Make the system observable. Logs, metrics and traces tell you what is happening without logging in to a machine.

The older “twelve-factor app” guidance (Adam Wiggins, Heroku, 2011) still reads as a good checklist for this: configuration in the environment, stateless processes, logs as event streams and the same build promoted from one environment to the next.

The building blocks of a cloud-native system

Most cloud-native systems are assembled from the same handful of parts. The tools change; the jobs they do don’t.

Building block What it does Common tools
Containers Package the app and its dependencies into one image Docker, Podman
Managed runtimes Run containers without managing servers AWS ECS with Fargate, Google Cloud Run, Azure Container Apps
Orchestration Schedule and heal many services across a cluster Kubernetes (EKS, GKE, AKS)
Serverless functions Run code per event and scale to zero AWS Lambda, Cloud Run functions (formerly Cloud Functions), Azure Functions
Managed data Databases, caches and queues run by the provider Amazon RDS, Cloud SQL, managed Redis, SQS, Pub/Sub
Infrastructure as code Define environments in reviewed files Terraform, OpenTofu, Pulumi, AWS CDK
Delivery pipelines Build, test and release every change GitHub Actions, GitLab CI, Jenkins
Observability Logs, metrics, traces and alerts OpenTelemetry, Prometheus, Grafana, the provider’s own monitoring

You don’t need every row on day one. A small product can be cloud-native with one container on a managed runtime, a managed database, a pipeline and basic monitoring.

What are the main benefits and biggest challenges of cloud-native development?

The main benefits of cloud-native development are scaling with demand, faster and safer releases, and systems that recover from failure on their own; the biggest challenges are added complexity, costs that grow quietly, a wider security surface and the skills needed to run it all. Each benefit depends on doing the groundwork well, and none of the challenges is a reason to avoid the approach, but each needs a plan.

01

Benefits

  • Scaling with demand. Managed runtimes and functions add capacity when traffic rises and remove it when it falls. That suits uneven traffic: admissions season, a campaign launch, a monthly report everyone opens on the same morning.
  • Faster, safer releases. Small changes that go through an automated pipeline are easier to test and easier to roll back. Teams that release this way tend to release more often, with less drama.
  • Resilience. Health checks restart failed containers, load balancers route around unhealthy instances, and managed databases take backups and fail over. Recovery becomes a setting rather than a night shift.
  • Paying for what you use. Serverless and autoscaling mean you are not paying for peak capacity all year, but only if someone watches the bill.
  • Consistent environments. The same image runs in testing and production, which removes a whole class of “it worked on my machine” bugs.
  • Team independence. When a system is split into well-defined services, separate teams can release their part without waiting for each other.
02

Challenges

  • Complexity. Every service you split out adds a network call, a deploy, a set of logs and a failure mode. Distributed systems are harder to debug, and local development gets harder when the app needs ten services to start.
  • Cost surprises. Idle clusters, oversized instances, data transfer between regions and log storage are the usual culprits. Without budgets, alerts and resource tags, the bill can grow faster than the traffic.
  • Security and configuration. Many cloud incidents start with configuration: a public storage bucket, a role with too many permissions, a secret in a repository. Cloud-native systems have more configuration, so they need least-privilege access, secret managers and automated checks in the pipeline.
  • Skills. Containers, infrastructure as code, observability and cloud permissions are skills in their own right. A team that is new to them needs time to learn, or help.
  • Vendor lock-in. Leaning on one provider’s managed services speeds you up but makes leaving harder. Containers, open standards such as OpenTelemetry and infrastructure as code keep more of the system portable.
  • Data residency and compliance. Where data is stored and who can reach it matters for regulated products. Choose regions and services with that in mind before the first deploy, not after.

Paying for what you use is the benefit most often undone by the cost challenge. Accept lock-in deliberately where a managed service is worth it, and set budgets and alerts before the first bill.

Planning a new web app?

Which developer tools make cloud-native development feel local?

The developer tools that matter most are the ones that make the cloud setup feel local: fast feedback, the same containers and the same configuration you run in production.

  • Local environments: Docker Compose to run the app with its database and queue; dev containers in VS Code or JetBrains IDEs so everyone shares one setup.
  • Infrastructure as code: Terraform or OpenTofu for declarative definitions; Pulumi or the AWS CDK if your team prefers writing infrastructure in a general-purpose language.
  • Pipelines: GitHub Actions or GitLab CI to build images, run tests, scan dependencies and deploy. See our guide to CI/CD pipelines for how the stages fit together.
  • Kubernetes tooling, if you use it: kubectl, Helm for packaging and k9s for a quick view of the cluster.
  • Observability: OpenTelemetry to instrument the code once, then Prometheus and Grafana or your provider’s monitoring to see it.
  • Security: a secret manager (AWS Secrets Manager, Google Secret Manager, Azure Key Vault or HashiCorp Vault) and image and dependency scanning in the pipeline.

Does your product need to be cloud-native?

Not every product needs a fully cloud-native architecture: decide from four traits of the project, not from fashion. The more of these that point to full cloud-native, the more the investment pays back.

A simple managed setup, the middle path and full cloud-native, compared on the four project traits
Project traitSimple managed setupOne app on a managed platformThe middle pathA modular monolith, run cloud-nativeFull cloud-nativeSeveral services, released separately
What you runOne application and a managed database on a managed hosting platformOne well-structured application in a container on a managed platform, with a managed database, a pipeline and monitoring from the startSeveral services, each deployed on its own, on a managed container platform or Kubernetes
Team sizeOne small team owns the whole productOne team today, with clear modules so a service can be split out laterSeveral teams need to release independently
Traffic patternSteady and predictableNot known yet, or growingSpiky, seasonal or growing fast
Release frequencyEvery few weeksOften, every change through one pipelineSeveral times a week or a day
Compliance and dataFew constraints on where data livesRegion and access rules chosen before the first deployData residency, audit trails or strict access rules
Best whenA small product with steady traffic and one teamA new product: most of the cloud-native benefits on day one, and a part split out later only for a real reasonSeveral of the four traits point to cloud-native at once

The middle path suits most new products: one well-structured application (a “modular monolith”) in a container on a managed platform, with a managed database, a pipeline and monitoring from the start. That gives you most of the cloud-native benefits on day one. When one part of the system needs to scale or release on its own, split it out then, with a real reason.

The same thinking applies to existing systems. Moving an old application to the cloud doesn’t require rewriting it as microservices. Containerising it, moving the database to a managed service and adding a pipeline is often the first, safest step.

How we’d decide hosting and architecture for a new web app

For a new web app, this is how we’d approach the hosting decision in a custom software development project: from the project traits above rather than a default stack, as a method rather than a fixed recipe, in six steps.

  1. Start from the traffic and the team

  2. Managed services first

  3. One application, cleanly divided

  4. Containers when they’re needed

  5. Pipeline, monitoring and budgets

  6. Security decided early

A cloud-native starting checklist

If you are planning a new product or moving an existing one, these nine steps give you a sound base without over-building. Tick the ones you already have in place:

9 steps to a sound base

Plan

Show or hide the steps2 steps
  1. 01 Write down the four traits

    Done when
    Why it matters
  2. 02 Choose one provider and one region

    Done when
    Why it matters

Read next How we build web apps

Build the base

Show or hide the steps4 steps
  1. 03 Containerise the application

    Done when
    Why it matters
  2. 04 Define the infrastructure as code

    Done when
    Why it matters
  3. 05 Set up a pipeline to staging first

    Done when
    Why it matters
  4. 06 Use managed services

    Done when
    Why it matters

Read next CI/CD pipelines

Run it

Show or hide the steps3 steps
  1. 07 Logs, metrics and alerts before launch

    Done when
    Why it matters
  2. 08 Tag resources and set a budget

    Done when
    Why it matters
  3. 09 Revisit when a trait changes

    Done when
    Why it matters

Read next Building secure, scalable software

Cloud-native development is a set of habits more than a technology choice. Start with the habits that pay back immediately (containers, pipelines, managed services and monitoring) and add the heavier machinery only when the product earns it.

02 FAQ

Questions, answered

How do you move an existing application towards cloud-native?
Move in steps rather than rewriting. Package the current application in a container, move its database to a managed service, then add an automated deploy pipeline and monitoring. Split out a separate service only when one part needs to scale or change on its own schedule. Each step brings a benefit even if you stop there.
Is cloud-native the same as microservices?
No. Microservices are one common pattern inside cloud-native systems, but a single well-structured application running in containers on a managed platform, with automated deploys and monitoring, is cloud-native too. Many products are better off starting as one application and splitting services out only when a team or a workload needs it.
Do you need Kubernetes to be cloud-native?
No. Kubernetes suits organisations running many services with a platform team to look after it. Smaller products often get the same benefits from managed container platforms such as AWS ECS with Fargate, Google Cloud Run or Azure Container Apps, or from serverless functions, with far less to operate.
Is cloud-native development more expensive?
It can be either. Paying only for what you use saves money when traffic is uneven, but idle clusters, oversized instances, data transfer and log storage can make bills grow quietly. Set budgets and alerts from the first deploy, tag every resource by service, and review the bill monthly.