When talking about things like "building your systems/applications around the cloud" or "using cloud technology for scalability", is "cloud-scaling" (from a provider eg. Amazon) this:
When placing your (eg.) web application into an AWS data-centre located within your office-region, the folks working at AWS have some type of monitoring technology that monitors resource-usage of your application and automatically scales up (or down) the resources when they reach a bottleneck (for example, RAM is hitting 92%, so their monitoring tech automatically provisions an extra 2GB and dynamically adds it to your current instance to prevent application-failure)
Using the example above, but this time, "cloud-scaling" is referring to the ability of your own (or some sys-admin provider) to manually (and much more easily) scale up/down your resources as needed (without any auto-adjusting monitoring technology doing that job)
Which one of the 2 options is it?