What does "auto-scaling" refer to in cloud services?

Auto-scaling in cloud services refers to the capability of automatically adjusting computational resources in response to real-time demand. This means that when the system detects an increase in workload or user requests, it can dynamically scale up its resources by adding more instances of services or virtual machines. Conversely, if the demand decreases, the system can intelligently scale down by removing unused instances to optimize costs and improve efficiency.

This automatic adjustment helps ensure that applications maintain optimal performance during varying loads without requiring manual intervention. It's an essential feature in cloud computing as it allows organizations to handle traffic spikes gracefully while avoiding over-provisioning resources during quiet periods, which can lead to unnecessary expenses.