The term "serverless architecture" means a cloud computing execution model where the cloud provider dynamically manages the allocation of resources. In this model, developers can focus on writing and deploying code without worrying about underlying server infrastructure, as they are charged based on actual usage rather than provisioned server resources. Serverless architecture supports rapid scaling and improves cost efficiency by eliminating the need to maintain server hardware. It enables organizations to innovate faster and respond to changing demands without the complexity of traditional server management.