Serverless architecture is a powerful tool for building scalable and cost-effective applications, offering inherent scalability, elastic resource allocation, cost-effectiveness through pay-per-use models, reduced operational overhead by abstracting away server infrastructure, and increased development speed with modular functions. However, it has limitations such as cold start latency, performance issues due to debugging and monitoring complexities, limited control over infrastructure, and vendor lock-in. Serverless is ideal for applications with variable and unpredictable workloads but may not be suitable for long-running tasks, high-performance computing needs, predictable and consistent workloads, complex resource-intensive applications, or regulatory compliance requirements. Alternatives include traditional server-based architectures, three-tier architectures, hybrid approaches combining serverless with other models, and choosing the right architecture by considering application requirements, development team expertise, cost implications, future scalability and flexibility. Ultimately, choose serverless when it aligns with your project's needs and goals, but be prepared to explore alternative architectures when necessary.