In cloud computing, scalability refers to the ability of a system to handle increased load by adding more resources or making better use of existing resources. It's a key benefit of cloud computing, as it allows businesses to easily and quickly adjust their IT resources to meet changing demand.

• Scalability can help businesses handle peak demand periods without investing in additional hardware.
• It allows for the efficient use of resources, reducing costs and improving performance.

Scalability works by adjusting resources to meet demand.

• In a cloud environment, this can be done automatically through auto-scaling, where resources are added or removed based on predefined rules and metrics.
• Scalability can be vertical (adding more resources to a single node) or horizontal (adding more nodes to a system).

An e-commerce company, EcomCorp, experiences high traffic during the holiday season. To ensure their website can handle the increased load, they use the scalability features of their cloud provider. The provider automatically adds more resources during peak times and removes them when demand decreases, ensuring a smooth shopping experience for customers.