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IaaS stands for Infrastructure as a Service in cloud computing. This model provides virtualized computing resources over the internet, allowing users to rent IT infrastructure on a pay-as-you-go basis. With IaaS, businesses can provision resources such as virtual machines, storage, and networks, enabling them to scale up or down based on their needs without the heavy capital expenditure of physical hardware.

This term highlights the key aspect of this service model, which is that infrastructure is delivered as a service rather than requiring physical servers and data centers to be managed by the user. Customers have the flexibility to manage their own applications, data, and OS, while the IaaS provider manages the underlying physical hardware, virtualization, storage, and networking.

Other options provided do not accurately represent the term IaaS. "Infrastructure and storage" and "Infrastructure and software" mix concepts that relate to different parts of IT services, while "Internal as service" does not align with established cloud service definitions. Thus, the choice clearly reflects the specific service model that is widely recognized and utilized in the cloud computing environment.