Elastic computing refers to the ability of cloud computing environments to dynamically scale computing resources up or down based on current demand. In traditional IT infrastructures, businesses must plan for peak loads, which often results in underutilized resources during periods of low demand. Elastic computing eliminates this inefficiency by allowing resources—such as CPU, memory, storage, and network bandwidth—to automatically adjust as workloads fluctuate.

Cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud offer elastic computing as part of their services, allowing businesses to handle varying loads without manually provisioning or de-provisioning hardware. For instance, during high-traffic events, an e-commerce platform can automatically scale its servers to accommodate more visitors, then reduce the number of active servers when traffic declines.

Elastic computing is central to the cloud’s cost-effectiveness and operational efficiency. By paying for only the resources used, organizations reduce operational costs while ensuring they have the capacity to meet spikes in demand. This flexibility also enables rapid experimentation and innovation, as developers can deploy and test applications without worrying about over-provisioning resources.