The architecture of the system using the serverless paradigm

The following diagram shows how the system would look if the serverless paradigm was used:

Its salient features are as follows:

• The primary RDBMS has been replaced by an AWS RDS (AWS Relational Database Service). RDS takes care of provisioning, patching, scaling, backing up, and restoring mechanisms for us. All we have to do is design the DB schema.
• The social sign-in module is replaced by AWS Cognito, which helps us to leverage Facebook (or any well-known social network). Using this, we can implement AuthN and AuthZ modules in our system in a matter of minutes.
• The notification modules have been replaced by AWS Simple Email Service (SES) and AWS Simple Notification Service (SNS), which offer turnkey solutions to implement the notification functionality in our system.
• The auditing DB has been replaced with the AWS ElasticSearch service and AWS CloudWatch in order to implement a log aggregation solution.
• The reporting and analysis module can be substituted with AWS Quicksight, which offers analysis and data visualization services.
• The core business logic is extracted into AWS Lambda functions, which can be configured to execute various events in the system.
• The maintenance of the system is managed by AWS, and load scaling is handled transparently.
• Monitoring of the system can be implemented by leveraging AWS CloudWatch and AWS SNS.

This architecture also enables us to develop our system in a micro-service based pattern, where there is an inherent failure tolerance due to highly cohesive and less coupled components, unlike with the traditional monolithic approach. The overhead for management is also reduced, and the costs come down drastically, as we are only charged for the resources we consume. Aside from this, we can focus on our core value proposition, that is, to design, develop, and deliver a cutting edge user experience.

Thus, we can clearly observe that serverless doesn't only mean ephemeral Functions as a Service, but includes mechanisms that deal with the implementation of peripheral (auditing and logging) and mission-critical (social identity management) components as turnkey solutions.