Describe the concept of "scalability" in system design.

The concept of "scalability" in system design refers to the capacity of a system to manage an increasing amount of work or its potential to be enlarged to accommodate growth. When a system is scalable, it can maintain performance levels as demand increases, whether this is through handling more users, transactions, data, or other resource-heavy tasks.

Scalability can occur in two main forms: vertical scaling (adding resources such as CPU or memory to a single machine) and horizontal scaling (adding more machines to a pool to distribute the load). This flexibility is crucial in today’s dynamic environments, where user demands can fluctuate significantly. Systems designed with scalability in mind can grow without requiring a complete redesign or overhaul, ensuring that they remain both effective and efficient as organizational needs evolve.

The other options address aspects that are related but distinct from scalability. Resource utilization pertains more to how effectively a system uses existing resources rather than its ability to grow. Cost reduction is focused on financial efficiency rather than handling increased load. Processing speed is concerned with the time it takes to complete tasks rather than the system’s ability to expand to meet new demands.