Scale-Up means scaling to a more powerful server, e.g. from a dual-processor server to a 8-processor server or bigger.
Scale-Out means expanding to multiple servers rather than a single, bigger server.
You have to check the licensing and maintenance costs of a Scale-Out solution in comparsion to a Scale-Up solution. Do not forget the avaibility of your solution.
Here is a list of interesting articles, covering such problems with different RDBM’s
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