Scalability focuses on increasing a system's capacity to handle higher workloads over time, often through vertical scaling (increasing resources within an existing server) or horizontal scaling (adding new servers). Elasticity ensures a system can dynamically respond to real-time changes in workload demands by adding or removing resources as needed. While scalability and elasticity overlap, they address different operational challenges, with scalability being more suitable for predictable growth scenarios and elasticity ideal for dynamic, fluctuating workloads. Both concepts are essential for optimizing resource usage and maintaining performance during periods of high demand, such as e-commerce sales events or video streaming surges. By understanding the principles of both scalability and elasticity, businesses can build cloud systems that balance cost-efficiency with performance, enabling them to adapt seamlessly to changing demands and support dynamic workloads.