A service is scalable if it results in increased performance in a manner proportional to resources added. Generally, increasing performance means serving more units of work, but it can also be to handle larger units of work, such as when datasets grow.[1](http://www.allthingsdistributed.com/2006/03/a_word_on_scalability.html)
Another way to look at performance vs scalability:
- If you have a performance problem, your system is slow for a single user.
- If you have a scalability problem, your system is fast for a single user but slow under heavy load.