Claiming R&D for Serverless Computing

Serverless computing, Function as a Service (FaaS), or cloud computing allows companies to quickly build and deploy applications by providing large computing resources on demand. Microsoft Azure Functions, AWS Lambda, Apache OpenWhisk, and Google cloud platform are some of the most popular serverless vendors.  Essentially, serverless technology can execute a company’s functions automatically based upon events triggered by humans or another program. The company can then pay for the service as it is executed (for event-driven application) or on a short-term basis as needed (for procedural application). Moreover, serverless computing relieves users of physical infrastructure management and the complexity around scaling business functions. Aside from simplifying the operations of companies, serverless computing encourages higher hardware utilisation by multiplexing workloads from different companies. Nonetheless, there is still a lot of R&D needed to be done to improve this technology. For instance, serverless architecture has more potential points of attack. These points could be on every event-driven or procedural function, API, and protocol. Moreover, there are inherently more permissions to manage when using serverless technology.

Claiming the R&D Tax Incentive for serverless computing project activities that involve software follows the same rules as claiming software-related R&D activities of any other technologies.

The key tests are for eligible activities where there was a lack of existing technical knowledge available, that experimentation was required to develop them and there was technical uncertainty in terms of the outcome of the experiments.

Some examples of these activities could include:

1. Creating a new scheduling algorithm to overcome security challenges

2. Developing a new algorithm to quickly scale up computational capabilities of serverless technologies

3. Improving existing algorithm to efficiently implement broadcast communication pattern of serverless computing

4. Writing a linear algebra algorithm to effectively utilise server resources

As you may observe from the list above, valid R&D activities for serverless computing are highly theoretical and involves mathematics. If your company has undertaken similar development as the list above, these activities may be eligible for the R&D tax incentives. However, these activities or the project where these activities are conducted should not be for the purpose of improving your company’s internal business processes or administration.

Furthermore, companies often make the mistake of assuming eligibility based on the project as a whole instead of the possible R&D activities conducted to complete the project. It is also to be expected that a company made an effort to conduct research or consult an expert in the field before claiming that a serverless computing project activity is considered an R&D activity. In many cases, a technical uncertainty that a project activity aims to shed light on can be resolved by applying expertise.

We at Innercode can help you assess whether your serverless computing project activities are eligible as R&D activities. By having the right advice and insights straightaway, you can be sure of maximising your R&D tax claim. We have years of experience delivering R&D Tax incentives to many software and tech companies – many of which are building enterprise and consumer projects. Through our streamlined process of analysing claims, we are confident that we can help you determine your eligible projects and activities in just a few hours of your time.

R&D Tax Rules

How can Export Market Development Grants Benefit Software and Tech Companies?

How can Export Market Development Grants Benefit Software and Tech Companies? New software and technology rarely sells itself, businesses often...
Read More
R&D Tax Rules

How Scaleups can Benefit from the R&D Tax Incentive

How Scaleups can Benefit from the R&D Tax Incentive The scale-up phase is the most important stage of a company’s...
Read More
Claiming R&D

Claiming R&D for a Software Company

Claiming R&D for a Software Company The best software companies are always innovating, always pushing the edge of their field....
Read More
Claiming R&D

Claiming R&D for Serverless Computing

Claiming R&D for Serverless Computing Serverless computing, Function as a Service (FaaS), or cloud computing allows companies to quickly build...
Read More
Claiming R&D

Claiming R&D for Hardware and Manufacturing

Claiming R&D for Hardware and Manufacturing The manufacturing industry is a very diverse sector that can include commodity products such...
Read More
Claiming R&D

Claiming R&D for Blockchain Project Activities

Claiming R&D for Blockchain Project Activities It is believed that Blockchain is the most disruptive and promising among many emerging...
Read More
Claiming R&D

Claiming R&D for a Tech Company

Claiming R&D for a Tech Company Many technology companies believe that they should have a dedicated R&D team or laboratory...
Read More
Claiming R&D

Claiming R&D for a Startup

Research and Development Tax Incentive(R&D Tax Incentive) The Research and Development tax incentive(R&D Tax Incentive) is the government program that...
Read More
Claiming Activities

Claiming IoT Project Activities

IoT Project Activities Internet of Things (IoT) facilitates the exchange of information between connected devices. These can vary from wearable...
Read More
Claiming R&D

Claiming R&D for Intelligent Transportation and Logistics Systems

R&D for Intelligent Transportation and Logistics Systems The future intelligent transportation and logistics systems (ITLS) are predicted to address societal...
Read More
Claiming Activities

Claiming Artificial Intelligence Project Activities

AI Projects It easier now for companies to put any artificial intelligence (AI) algorithm and machine learning methods into production...
Read More
Claiming Activities

Claiming AR Project Activities

AR Project Activities Both augmented reality (AR) and virtual reality (VR) have been gaining ground in the industry for several...
Read More
R&D Tax Rules

ATO More Stringent on R&D Tax Claims: Tips to Ensure your Compliance

ATO More Stringent on R&D Tax Claims: Tips to Ensure your Compliance “What you don’t know may actually hurt you!”...
Read More
Software Development Areas

Software in the Target Zone

Software in the Target Zone The software industry in Australia has been growing in size and strength. Software has now...
Read More

Post Author: AdminInnerCode

119 Willoughby Road Crows Nest

NSW 2065

contact@innercode.com.au

(02) 8004 8951