Vertical scaling involves adding more capacity to an existing server, such as CPU, RAM, storage, or a combination of these, to boost performance. However, it has physical limitations and requires downtime to implement. On the other hand, horizontal scaling distributes workloads across multiple servers or nodes to increase computing power and redundancy. This approach is commonly used in cloud environments and provides higher scalability, fault tolerance, and improved performance through load distribution. The choice between vertical and horizontal scaling depends on business-specific needs, including performance requirements, cost constraints, and future growth projections. While vertical scaling suits predictable workloads, horizontal scaling is better for dynamic, growing environments. Businesses often adopt a hybrid approach, starting with vertical scaling and gradually incorporating horizontal scaling as they grow.