Vertical fragmentation is a database design technique where a table is divided into smaller tables, each containing a subset of the original table's columns. This approach allows for more efficient data retrieval and storage, as it can reduce the amount of data that needs to be processed for specific queries. In vertical fragmentation, each new table typically represents a specific aspect of the original data, making it easier to manage and optimize. This method is often used in distributed databases, where different fragments can be stored on different servers, improving performance and scalability for applications like cloud computing and big data.