One practical example of using Azure Functions is to create a serverless image processing solution. By triggering the function whenever an image is uploaded to a storage account, you can automatically resize or compress the image without having to maintain a separate server or infrastructure. This not only improves scalability but also reduces cost as you only pay for the time the function executes.

Azure Functions can also be utilized to build serverless APIs. You can expose your functions as HTTP endpoints, allowing other services or applications to interact with them. This is particularly useful when you want to quickly create and deploy lightweight APIs without the need for managing infrastructure or scaling concerns.

Another common scenario is to use Azure Functions for event-driven data processing. For instance, you can set up a function to be triggered whenever data is added or updated in a database. This allows you to perform additional operations on the data, such as performing calculations, sending notifications, or updating related records.