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In this tutorial, Amanda Cavallaro, a Developer Advocate at Vonage, demonstrates how to create an SMS message log and respond to the sender using Cloud Functions, Firebase real-time database, and the Vonage SMS API. Prerequisites include having accounts with Firebase and Vonage. The process begins by creating a new project in the Firebase console, selecting a name and deciding whether to enable Analytics. After project creation, adjust the plan to Blaze under Usage and billing settings. Finally, install Firebase tools via the terminal using the command: npm install -g firebase-tools.