Serverless extensibility allows third-party code to be securely executed within a Software as a Service (SaaS) product using serverless functions. This provides benefits over traditional webhooks by handling hosting and monitoring, and allowing custom code to be created and run directly within the SaaS product using an inline code editor. Serverless extensibility benefits both customers by lowering costs and barriers to customization, and SaaS providers by improving customer retention and enabling new integration possibilities. However, concerns remain around ensuring custom code is properly versioned, debugged and secured to prevent issues like vendor lock-in.