The term "serverless computing" signifies a model in cloud services where developers build applications without managing the underlying server infrastructure. In this setup, the cloud provider dynamically allocates resources as needed, allowing developers to focus on coding and deploying their applications. Serverless computing operates on a pay-as-you-go model, where users are charged based on function calls and execution time instead of pre-reserved resources. This approach simplifies operations, enhances scalability, and accelerates development cycles, as it eliminates the need for server management, allowing teams to innovate more efficiently.