By "Serverless" we mean the developer does not have to think about servers. They exist, but Amazon manages them.
Instead, the developers deals only with Lambda, an event-driven compute resource. You upload your code and it runs when triggered, scaling horizontally and massively, out-of-the-box.
The workflow rocks because it's endpoint/function isolation, not just application isolation. Every piece of logic is in its own container. Best of all, you only get charged when that code is run (!!!).