The acronym FaaS stands for Function as a Service, a cloud computing paradigm that allows developers to execute code in response to events without the complexity of managing servers. FaaS is a component of serverless computing, where resources are automatically scaled based on demand. This approach enables developers to focus on writing functionalities while the cloud provider manages the infrastructure, leading to cost efficiency and faster deployment. FaaS is particularly beneficial for applications that require quick, scalable solutions for processing tasks like data processing and API development.