What is the ability of cloud resources to scale up and down based on demand called?

The ability of cloud resources to scale up and down based on demand is referred to as elasticity. This concept emphasizes the dynamic adjustment of resources in a cloud environment, allowing for the provisioning of additional resources when demand increases, and the reduction of resources when demand decreases, thereby optimizing cost and performance. Elasticity is a key characteristic of cloud computing that enables organizations to efficiently meet workload demands without over-provisioning resources.

Scalability, while related, typically describes the capacity of a system to handle growing amounts of work or its potential to accommodate growth without affecting performance. Elasticity goes a step further by specifically focusing on the automatic and on-demand nature of these adjustments in response to real-time usage patterns.