The term "microservices" in software architecture refers to an architectural style where an application is built as a collection of small, independently deployable services. Each microservice focuses on a specific function and interacts over a network, allowing for greater scalability and flexibility compared to traditional monolithic architectures. This approach enables teams to develop, deploy, and scale services independently, leading to faster iterations and improved fault isolation. Consequently, microservices architecture facilitates agile development practices and better alignment with continuous delivery and DevOps methodologies.