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      Question

      What is 'auto-scaling' in cloud

      computing?
      A Automatically updating software to the latest version on cloud servers Correct Answer Incorrect Answer
      B The ability of cloud infrastructure to automatically increase or decrease compute resources based on actual demand Correct Answer Incorrect Answer
      C Automatically backing up data at scheduled intervals so that in case of a network error all data can be recovered fully Correct Answer Incorrect Answer
      D Automatically migrating workloads between cloud providers for cost optimization Correct Answer Incorrect Answer
      E The process of automatically encrypting data stored in the cloud Correct Answer Incorrect Answer

      Solution

      Auto-scaling monitors metrics (CPU utilization, request count, response time) and triggers scaling actions — scale out (add instances) when demand rises, scale in (remove instances) when demand drops. This ensures high availability during peak loads (e.g., end-of-month salary processing, festive season transactions) without over-provisioning during off-peak hours. Vertical scaling means bigger instance whereas Horizontal scaling means more instances (preferred for cloud). Auto scaling saves significant infrastructure costs for banks.

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