'Serverless Architecture' refers to a cloud computing execution model where the cloud provider manages the server infrastructure. This allows developers to focus on writing code without worrying about server management or capacity planning. The application runs in stateless compute containers that are event-driven and automatically scale based on demand. Serverless architecture often utilizes Functions as a Service (FaaS) to execute code in response to events. This model enhances agility and can lead to cost savings since users only pay for the actual compute time used.