Purpose: With an emphasis on AWS Lambda specifically, this technical paper explores the trade-offs and architectural considerations between monolithic and single-purpose functions in serverless computing systems. Methodology: By examining the effects of using either a monolithic approach or a precisely calibrated, single-purpose function design, we hope to empower developers and architects. We investigate in-depth aspects, including resource usage, application monitoring, scalability, and performance. The approach strongly emphasizes thoroughly examining AWS Lambda’s architectural issues, including the methods and resources to produce insightful results. Findings: The results emphasize carefully investigating serverless computing’s scalability, performance, and resource use, especially regarding single- and monolithic-purpose function architectures. These observations provide concise factors to take into account when developing serverless applications. Unique contributor to theory, policy, and practice: The last section provides actionable insights to help developers of serverless applications make well-informed decisions by condensing knowledge into practical suggestions for maximizing system responsiveness and resource management.