The type of cloud service that offers hardware and software tools over the internet is referred to as Infrastructure as a Service (IaaS). It provides customers with virtualized computing resources, enabling them to run applications, store data, and manage networks without investing in physical hardware. Users can scale resources according to their needs, enhancing flexibility and cost-effectiveness. Other types of cloud services include Platform as a Service (PaaS) and Software as a Service (SaaS), but IaaS focuses specifically on providing infrastructure solutions for users.