2.4 Azure App Service, Containers, and Serverless

Key Takeaways

  • Azure App Service is a PaaS platform for hosting web apps, REST APIs, and mobile backends without managing infrastructure.
  • Azure Container Instances (ACI) runs containers without managing VMs — the simplest way to run a container in Azure.
  • Azure Kubernetes Service (AKS) is a managed Kubernetes orchestration service for complex, multi-container applications.
  • Azure Functions is a serverless compute service that runs event-driven code with per-execution billing.
  • Choose App Service for web apps, ACI for simple containers, AKS for complex microservices, and Functions for event-driven tasks.
Last updated: March 2026

Azure App Service, Containers, and Serverless

Quick Answer: Azure App Service = PaaS web hosting. Azure Container Instances = simple containers without VMs. Azure Kubernetes Service = managed container orchestration. Azure Functions = serverless event-driven compute.

Azure App Service (PaaS)

Azure App Service is a fully managed PaaS platform for building, deploying, and scaling web applications, REST APIs, and mobile backends.

Key features:

  • Supports multiple languages: .NET, Java, Node.js, PHP, Python, Ruby
  • Built-in auto-scaling and load balancing
  • CI/CD integration with GitHub, Azure DevOps, Docker Hub
  • Custom domains and free SSL/TLS certificates
  • Deployment slots for staging and blue-green deployments
  • Built-in authentication (Azure AD, Google, Facebook, Twitter)
  • Runs on Windows or Linux

App Service Plans: App Service resources run on App Service Plans, which define the compute resources (CPU, memory) available. Plans range from Free and Shared (for dev/test) to Basic, Standard, Premium, and Isolated (for production).

TierUse CaseAuto-ScaleCustom DomainsCost
Free/SharedDev/testNoShared onlyFree / Low
BasicLow-traffic appsNoYes$$
StandardProduction appsYesYes$$$
PremiumHigh-performanceYes (more instances)Yes$$$$
IsolatedDedicated environmentYesYes$$$$$

Containers in Azure

Containers package an application and its dependencies into a portable, consistent unit that runs the same anywhere. Azure offers multiple container hosting options:

Azure Container Instances (ACI)

The simplest and fastest way to run a container in Azure. No VMs to manage, no orchestration to configure.

  • PaaS — Azure manages the underlying infrastructure
  • Per-second billing — Pay only while the container is running
  • Fast startup — Containers start in seconds
  • Best for: Simple applications, batch jobs, CI/CD tasks, sidecar containers

Azure Kubernetes Service (AKS)

A managed Kubernetes service for deploying, scaling, and managing containerized applications at scale.

  • Managed control plane — Azure manages the Kubernetes master nodes (free)
  • You manage the worker nodes (VMs) that run your containers
  • Auto-scaling — Automatically scale pods and nodes based on demand
  • Built-in monitoring — Integration with Azure Monitor and Container Insights
  • Best for: Complex microservices architectures, multi-container applications, enterprise-grade container deployments

Azure Container Apps

A serverless container platform built on Kubernetes that abstracts away cluster management.

  • Serverless — No cluster management required (unlike AKS)
  • Event-driven scaling — Scale based on HTTP traffic, queue length, or custom events
  • Scale to zero — Save costs when there is no traffic
  • Best for: Microservices, event-driven apps, background processing

Serverless Computing

Azure Functions

Azure Functions is a serverless compute service that runs small pieces of code (functions) in response to events.

Key characteristics:

  • Event-driven — Triggered by HTTP requests, timers, queue messages, blob uploads, etc.
  • Auto-scaling — Scales from zero to thousands of instances automatically
  • Micro-billing — Pay only for execution time (per-second billing)
  • Stateless by default — Each invocation is independent (use Durable Functions for state)
  • Multiple languages — C#, JavaScript, Python, Java, PowerShell, TypeScript

Pricing plans:

PlanBillingScaleBest For
ConsumptionPer execution + GB-s0 to 200 instancesEvent-driven, variable workloads
PremiumPre-warmed instances1 to 100 instancesLow-latency, VNET integration
DedicatedApp Service PlanFixed instancesExisting App Service resources

Azure Logic Apps

Azure Logic Apps is a serverless workflow orchestration service that connects apps, data, services, and systems.

  • Visual designer — Build workflows using a drag-and-drop designer
  • 400+ connectors — Pre-built integrations with Microsoft 365, Salesforce, SAP, and more
  • Pay per action — Billed for each action executed in a workflow
  • Best for: Business process automation, data integration, system integration

Compute Service Comparison

ServiceTypeManage OS?Best ForPricing
Azure VMsIaaSYesCustom workloads, lift-and-shiftPer-second compute
App ServicePaaSNoWeb apps, APIsApp Service Plan
Container InstancesPaaSNoSimple containersPer-second
Kubernetes ServiceManagedWorker nodesComplex microservicesWorker node VMs
Container AppsServerlessNoEvent-driven containersPer-second + scale to zero
FunctionsServerlessNoEvent-driven codePer-execution
Logic AppsServerlessNoWorkflow automationPer-action

On the Exam: Questions will describe a scenario and ask which compute service is the best fit. Focus on the KEY differentiator: Does the scenario need full OS control (VMs)? Just web hosting (App Service)? Event-driven code (Functions)? Container orchestration (AKS)?

Test Your Knowledge

A company wants to deploy a web application without managing the underlying operating system or servers. Which service should they use?

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Test Your Knowledge

Which Azure service is the simplest way to run a single container without managing VMs or orchestration?

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B
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D
Test Your Knowledge

Which serverless service is best for running small pieces of code in response to events like HTTP requests or timer triggers?

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B
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D
Test Your Knowledge

Which Azure compute service provides a managed Kubernetes environment for orchestrating multi-container applications?

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B
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D