Auto Scaling is a cloud computing feature that allows organizations to scale cloud resources automatically, based on predefined policies and actual demand. It's like a thermostat for your cloud environment, adjusting the number of server instances up or down in response to changes in load. This ensures that the right amount of resources is always available to meet your application's demand, optimizing both performance and cost.

Auto Scaling is a key player in the game of cloud cost management. It's the balancing act that ensures you're not overpaying for unused resources or under-provisioning and risking performance. By dynamically adjusting resources to match demand, Auto Scaling ensures you're only paying for what you actually use.

But it's not just about cost savings; it's about agility and performance. Auto Scaling allows your applications to handle increases in traffic without manual intervention, ensuring high availability and customer satisfaction. It's a win-win situation, optimizing both costs and performance.

Consider a tech company, TechCorp, that runs a popular online service.

Without Auto Scaling - During a sudden surge in user traffic, TechCorp's servers become overloaded, leading to slow performance and unhappy users. Conversely, during periods of low traffic, TechCorp pays for idle server capacity, wasting money.

With Auto Scaling - TechCorp's system automatically spins up additional server instances during high traffic, maintaining performance. During low traffic, it automatically scales down, reducing costs. This ensures optimal user experience while keeping costs in check.