What does "scalability" mean in cloud environments?

Scalability in cloud environments refers to the capacity of a system to grow and manage increased demand by adjusting resources up or down without impacting performance. This means that organizations can seamlessly add or remove computing resources, such as processing power, storage, or networking capacity, according to their current needs. This flexibility is a fundamental benefit of cloud computing, enabling businesses to handle varying workloads efficiently without the need for substantial upfront investments in hardware.

For instance, during peak business hours, a company can scale up resources to accommodate the increased traffic and ensure smooth operation. Conversely, during off-peak times, they can scale down to minimize costs, thereby optimizing resource utilization. This on-demand resource allocation is what defines scalability and is a significant advantage offered by cloud service providers.