There are two main types of scalability: vertical and horizontal. Vertical scalability consists of potentiating the hardware specs of a given server. This is typically done by increasing the number (and to a minor extent, speed) of the processors, adding more RAM, and so on. Commodity hardware tends to impose a strong limit on the resources that can be augmented. There is only so much that can be stuffed into your typical x64_86 Dell server, even replacing the entire machine with the top of the line model (having the same architecture).
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