The term 'serverless architecture' implies a cloud computing model where developers build and run applications without managing the underlying server infrastructure. In this model, cloud providers dynamically allocate resources as needed, allowing for automatic scaling and reduced operational complexity. With serverless solutions, developers can focus on writing code and deploying applications while offloading the management of servers, maintenance, and scaling to the cloud provider. This can lead to minimized costs and faster development cycles, making it appealing for modern application development.