"Cloud scalability" in cloud computing refers to the ability to dynamically adjust resources and services based on demand. It allows businesses to expand or reduce their cloud infrastructure seamlessly, adapting to workload fluctuations without disrupting services. Vertical scalability involves adding resources to existing servers, while horizontal scalability involves adding more servers to manage increased demand. This flexibility enables organizations to manage costs efficiently, maintain performance, and ensure reliability during peak usage periods, making cloud scalability a vital characteristic for businesses looking to grow in a competitive market.