In the context of cloud computing, microservices refer to a method of developing software systems that are made up of independently deployable, modular services. Each service runs a unique process and communicates through a well-defined, lightweight mechanism to serve a business goal.

• Microservices allow for the continuous delivery and deployment of large, complex applications.
• They also enable an organization to evolve its technology stack, by allowing each service to use different technologies.

Microservices work by breaking down an application into a collection of smaller services that are each able to be developed, deployed, and scaled independently.

• Each service is self-contained and should implement a single business capability.
• Services communicate with each other through APIs and can be updated independently of the rest of the application.

Consider an e-commerce application. Instead of having a single, monolithic application, the application could be broken down into several microservices.

• One microservice might handle user authentication, another might handle product catalog management, and a third might handle order processing.
• Each of these microservices could be developed and deployed independently, allowing the e-commerce application to scale and evolve more flexibly.