What does the term elasticity refer to in cloud computing?

Elasticity in cloud computing specifically refers to the capability of a cloud environment to automatically allocate and deallocate resources based on demand. This means that organizations can scale their resources up or down as their needs change, allowing for efficient resource management and cost control. For example, during a peak period, more computing power might be needed, and elasticity enables the cloud infrastructure to dynamically increase its resources. Conversely, during off-peak times, those resources can be reduced to minimize costs. This flexibility is one of the key advantages of cloud services, allowing businesses to respond swiftly to varying workloads without the need for extensive hardware investments or manual adjustments.