Monolith vs microservices ... small server vs big server...

We have all gotten so familiar with virtualization and abstractions between our software and the servers that run it. These days, “serverless” computing is all the rage, and even “bare metal” is a class of virtual machine. However, every piece of software runs on a server. Since we now live in a world of virtualization, most of these servers are a lot bigger and a lot cheaper than we actually think.

What is the even loop and how it is supposed to work?