I think there is place for all kinds of software and infrastructure, based on your business model and scale.

You can start with serverless, move to normal cloud instances and finally to bare metal or the other way around!

For example, the core value provided by an ERP software is not performance but the business logic. Serverless is a good fit for startups creating such software. If you are running a conference call business or serving tons of video like Netflix, a different architecture better suits your need. Such as having edge servers with every ISP.