The acronym "IaaS" represents Infrastructure as a Service in cloud computing services. It provides virtualized computing resources over the internet, allowing businesses to rent servers, storage, and networking components. IaaS enables users to scale their infrastructure according to demand without needing to invest in physical hardware. This cloud service model offers key benefits such as cost-effectiveness, flexibility in resource allocation, and reduced management burden, as providers take care of maintenance and updates while users focus on deploying applications.