The term "microservices" refers to an architectural style that structures an application as a collection of small, independent services that communicate over well-defined APIs. Each microservice performs a specific business function and can be developed, deployed, and maintained independently. This contrasts with traditional monolithic architectures, where all components are tightly coupled. Microservices enhance scalability, allow for continuous integration and deployment, and enable teams to use diverse technologies across services. This flexibility fosters innovation and reduces the time-to-market for new features.