What are microservices?
Microservices are an architectural style in which an application consists of many small, independent services. Each service performs a clearly defined task, can be developed, deployed, and scaled independently, and communicates with the others via interfaces.

Microservices: definition
The opposite model is the monolith: an application in which all functions—from user management to the shopping cart to invoicing—sit in one shared block of code and are deployed together. In a microservice architecture, this application is broken down into individual services, such as catalog, ordering, payment, and shipping.
Ideally, each service has its own data storage and can be owned by a small team. Changes to one service don't require redeploying the entire application. The services are divided up along business domains, not technical layers.
How microservices work
The services communicate via clearly defined interfaces—synchronously, for example via REST API or gRPC, or asynchronously via messaging systems such as RabbitMQ or Apache Kafka. An API gateway often bundles external requests and routes them to the responsible service.
For everything to work together, each service needs a clear contract: What data does it accept, what does it return, and how does it respond to errors? If a service changes, its interfaces must remain backward compatible or be versioned.
- Independent services with clearly defined business responsibilities
- Communication via APIs or messages
- Usually run in containers, e.g., with Docker and Kubernetes
- Central monitoring and logging across all services
Benefits and limitations of microservices
Microservices make it possible to scale heavily used parts in a targeted way, choose the right technology for each service, and let several teams work in parallel. If one service fails, the entire application doesn't necessarily come to a standstill.
On the other hand, there is significantly more complexity: distributed data, network errors, and more elaborate testing and monitoring. For small teams and early product phases, a well-structured, modular monolith is often the better choice—it can be split up selectively later when a concrete need arises.
- Independent deployment and scaling of individual functions
- Several teams can work in parallel
- Greater effort for operations, testing, and monitoring
- Pays off mainly for large, growing systems
Real-world example: breaking up a monolith step by step
An online retailer runs a store that has grown over many years. The product search in particular comes under heavy load during promotions and slows down the entire store. Instead of rewriting everything, the search is first moved into its own service and scaled separately. Other areas follow only where there is a clear benefit.
Nano Concepts takes a level-headed look at existing architectures and recommends microservices only where they actually solve your problem—otherwise, a cleanly modularized application.
Frequently asked questions about Microservices
A monolith is a single application that is deployed as a whole. Microservices split functions into independent services that are developed and operated separately. Both approaches can be implemented cleanly or poorly—what matters is the internal structure.
No. They solve the scaling and organizational problems of large systems but bring a lot of complexity. For many applications at mid-sized companies, a modular monolith is more cost-effective.
Not necessarily, but containers and orchestration make operating and scaling many services considerably easier. With just a few services, simpler solutions are often enough.
Matching services

Software Development
Software from requirements to operations – web, mobile and integrations from a single source.
Learn more
API & Backend Development
APIs and backends that connect ERP, CRM, store and apps – automatic data exchange instead of retyping.
Learn more
DevOps & CI/CD
Automated tests, builds and deployments – for faster releases and fewer outages in production.
Learn moreRelated terms
Relevant for these industries
Related magazine articles

REST API with OpenAPI: Design, Versioning and Error Format
A good API is understandable, stable and well documented. How to design REST APIs with OpenAPI cleanly, version them without breakage and save integration effort with a clear error culture.
Read more
Prioritizing Technical Debt: Pay the Interest or Pay It Down?
Technical debt is not a synonym for bad code – it becomes dangerous when it stays invisible. Here is how to assess legacy burdens by impact and effort and reduce them in a plannable way.
Read more
Software Requirements Specification (Lastenheft): Structure, Example and Checklist
A good requirements specification makes quotes comparable and fixed prices possible. How it is structured, how to word requirements so they can be tested and how to tell that yours is complete.
Read more