Azure Container Apps is a serverless platform that allows you to maintain less infrastructure and save costs while running containerized applications. Instead of worrying about server configuration, container orchestration, and deployment details, Container Apps provides all the up-to-date server resources required to keep your applications stable and secure. It enables event-driven application architectures by supporting scale based on traffic and pulling from event sources like queues, including scale to zero.
Azure Functions provides integrated support for developing, deploying, and managing containerized function apps on Azure Container Apps. Use Azure Container Apps to host your function app containers when you need to run your event-driven functions in Azure in the same environment as other microservices, APIs, websites, workflows, or any container hosted programs. Container Apps hosting lets you run your functions in a fully managed, Kubernetes-based environment with built-in support for open-source monitoring, mTLS, Dapr, and Kubernetes Event-driven Autoscaling (KEDA).
Resource links:
https://learn.microsoft.com/en-us/azure/container-apps/compare-options
https://learn.microsoft.com/en-us/azure/azure-functions/functions-container-apps-hosting