Serverless databases are ideal for businesses with spiky or unpredictable workloads as they can scale up and down automatically in response to changes in demand. They offer cost savings by billing users based on actual storage and compute usage, rather than the machine. Additionally, serverless databases minimize operational efforts required for scaling, making them a good choice for development teams that want to focus on application building. However, they may not be suitable when control over hardware is needed or in cases where high-security workloads require dedicated solutions.