Dynamic scaling is a cloud computing feature that allows resources to be automatically adjusted based on current demand. This means that when more users access a service, additional resources like servers or storage can be added instantly. Conversely, when demand decreases, unnecessary resources can be reduced, helping to save costs. This process is essential for businesses that experience fluctuating workloads, such as e-commerce sites during sales events. By utilizing dynamic scaling, companies can ensure optimal performance and reliability without over-provisioning resources, which can lead to wasted expenses.