In cloud computing, the acronym 'FaaS' stands for Function as a Service. This serverless computing model allows developers to execute code in response to events without managing the underlying infrastructure. By using FaaS, developers can focus solely on writing individual functions that perform specific tasks, enabling easier scaling and deployment. Additionally, pricing is based on actual usage, as resources are allocated dynamically, making it cost-effective for applications with variable workloads. FaaS exemplifies the shift towards more flexible and efficient cloud services, enhancing agility and innovation in software development.