Autoscale allows you to have the right amount of resources running to handle the load on your application. It allows you to add resources to handle increases in load and also save money by removing resources that are sitting idle. You specify a minimum and maximum number of instances to run and add or remove VMs automatically based on a set of rules. Having a minimum makes sure your application is always running even under no load. Having a maximum limits your total possible hourly cost. You automatically scale between these two extremes using rules you create.
Azure Monitor autoscale applies only to Virtual Machine Scale Sets, Cloud Services, App Service - Web Apps, API Management services, and Azure Data Explorer Clusters.
Horizontal vs vertical scaling
Autoscale only scales horizontally, which is an increase ("out") or decrease ("in") in the number of VM instances. Horizontal is more flexible in a cloud situation as it allows you to run potentially thousands of VMs to handle load.
In contrast, vertical scaling is different. It keeps the same number of VMs, but makes the VMs more ("up") or less ("down") powerful. Power is measured in memory, CPU speed, disk space, etc. Vertical scaling has more limitations. It's dependent on the availability of larger hardware, which quickly hits an upper limit and can vary by region. Vertical scaling also usually requires a VM to stop and restart.
References: https://docs.microsoft.com
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