You would have heard the word elasticity multiple times in AWS. What does it mean? Suppose you have an EC2 instance. After the load increases, it would be better if there is another EC2 instance to share the load. So, you launch another instance through Auto-Scaling. Now, the load is shared by these two instances. The EC2 instances, since one can do the same work of the other, are elastic . This is called as elasticity .