The type of cloud service that provides on-demand computing resources over the internet is known as IaaS, which stands for Infrastructure as a Service. This model allows users to rent virtualized hardware resources, such as servers, storage, and networking, on a pay-as-you-go basis. IaaS offers flexibility, scalability, and cost-efficiency, enabling businesses to scale their infrastructure based on demand without investing in physical hardware. It is particularly beneficial for startups and companies undergoing rapid growth.