The document discusses microservices as an alternative to monolithic applications. It notes that monoliths can be difficult to scale, diagnose issues within, introduce changes to, and fail globally. Microservices are proposed as a solution by separating applications into smaller, independent services with distinct purposes. This allows for workload partitioning, parallel development, isolated failures, and more autonomy. However, microservices also present challenges around distributed systems and increased complexity. The document recommends starting with a modular monolith and gradually splitting services, using practices like event-driven architecture and contract testing.