Applications can scale horizontally by adding more servers or vertically by upgrading already existing servers. Many cloud-based platforms, such as AWS and Azure, as well as Google Cloud, natively provide auto-scaling mechanisms that automatically adjust resources according to traffic.
For example, an Elastic Load Balancing (ELB) in AWS can distribute incoming traffic to numerous EC2 instances. Its use increases the number of instances when traffic increases and decreases the instances when traffic decreases, saving costs.