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Choose Vertical vs Horizontal Scaling

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Your question is Choose Vertical vs Horizontal Scaling. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

How would you advise a customer on choosing between vertical and horizontal scaling when their AI application experiences unpredictable traffic spikes on DigitalOcean?