Cloud computing has evolved continuously, with serverless architectures representing a pivotal innovation that decouples application logic from infrastructure management. This paper provides a comprehensive analysis of modern serverless computing, identifying it as a critical enabler for highly scalable, cost-efficient, and agile enterprise applications. Beyond foundational concepts, the analysis examines the composition of Function-as-a-Service (FaaS) and Backend-as-a-Service (BaaS) models within contemporary cloud ecosystems. The research investigates architectural features that enable automatic elasticity, event-driven processing, and a shift in DevOps practices, reducing operational overhead. By evaluating diverse use cases, including real-time data analytics, microservices, and Internet of Things (IoT) deployments, the paper demonstrates the business value of serverless adoption. Additionally, it addresses challenges such as cold start latency, vendor lock-in, and security complexities in distributed environments, and proposes mitigation strategies and best practices. The study concludes by forecasting future developments, including the convergence of serverless computing with edge computing, artificial intelligence (AI), and multi-cloud orchestration frameworks, and provides a roadmap for enterprises undergoing digital transformation.