Eric Smith from AppDynamics recently released a great article on application scalability.
Essentially the main point is that the ability or effectiveness of scaling vertically/horizontally your application depend on various factors, more complex than just looking at the OS CPU and memory utilization.
Proper usage of the right tools and capture of application specific metrics are crucial in order to identify tuning opportunities. This approach will also help you determine the right initial and incremental infrastructure/middleware sizing for your on-premise or in the cloud production environment, reducing your client hardware/hosting...