Horizontal scaling means that the scaling is done by adding more machines into your pool of resources
Vertical scaling means that the scaling is done by adding more power (CPU, RAM) to an existing machine.
Example of Horizontal and Vertical scaling:
Horizontal scaling is often based on data partitioning and each node contains only part of the data. The vertical scaling resides on a single node and scaling is done through multi-core by spreading the load between the CPU and RAM resources of that machine.
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