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Elasticity aims at matching the amount of resource allocated to a service with the amount of resource it actually requires, avoiding over- or under-provisioning. '''Over-provisioning''', i.e., allocating more resources than required, should be avoided as the service provider often has to pay for the resources that are allocated to the service. For example, an [[Amazon EC2]] M4 extra-large instance costs [[US$]]0.239/hour. If a service is allocated two virtual machines, instead of one required, the service provider wastes $2,095 every year. Hence, the service provider's [[expenses]] are higher than optimal and the [[Profit (accounting)|profit]] is reduced.
'''Under-provisioning''', i.e., allocating fewer resources than required, must be avoided, otherwise the service cannot serve its users with a good service. In the above example, under-provisioning the website may make it seem slow or unreachable. Web users eventually give up on accessing it, thus, the service provider loses customers. On the long term, the provider's [[income]] will decrease, which also reduces the
==Problems==
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