Generally there were two ways to approach the database capacity. One way is to scale up by increasing the capacity of your existing servers. The other way is to scale out by adding additional servers. Pro's and Con's exists both ways. Let's discuss that in detail.Scaling UpScaling up to add capacity to your database server is little bit easier when compared with scale out both in hardware and software perspective. But you will come to a situation where you can't scale up anymore; at that point you should go for scale out methodology.Deciding which way to go first is the key thing you should concentrate. For that you look at how busy your CPU is. If they are close to 100 percent most of the time, then you are CPU bound and adding more I/O capacity won't help you. In that case you should add more CPU sockets, or switch to CPU's with a larger cache or a higher clock rate.First thing you need to do is, adding more memory up to the system maximum capacity or what your budget allows. Next add more disk or controllers to increase your system I/O throughput. I/O bound servers sometimes benefit from a large number of drives. Few things that should be kept in mind are as follows