Serverless now integrates with IBM OpenWhisk
serverless.com
serverless.com
So then you build a "serverless" thing and then it needs scale at which point you have to rewrite the whole thing as a classic "serverful" application that loads the runtime once, caches stuff, etc. So why not just build it right and with proper discipline the first time?
After the function is warmed up it is just as fast as if it was on a dedicated server. Unless it cools off. Which it won't if the function gets regular usage.
As the function becomes more popular it will be loaded onto more servers and the work can be spread across those as well.
However, Lambda takes that one step further. The entire app stays running in memory. No loading or recompiling code. The function is sent instructions via interprocess communication.
So you can take advantage of things that are difficult (though not impossible) to take advantage of in PHP such as connection pooling and shared memory.
So let's say you do that.
If two clients request the same function at the same time it will run the function in two different containers. One for each client. They are isolated (think multiple instances of Node running in multiple Docker containers). They might as well be on different machines entirely.
The platform will not reuse the same container unless the previous request to that container has finished.
If you ask why Serverless in general... scaling to millions of users for barely more expensive than running servers with little to no devops cost. At less users it is significantly cheaper. A low-traffic Serverless app could cost pennies a month and you have the full power of your favorite language at your disposal. (assuming your favorite language is Javascript, Java, or Python)