Within an existing infrastructure (hardware, software etc.), scalability involves the capacity to increase workload without affecting performance. This requires a specific amount of resources, which typically have a pre-planned capacity with some headroom built in for peak demand.
Scalability enables the capacity to grow by adding more infrastructure resources, sometimes without hitting a fixed limit. Scalability can be vertical (scaling up within a system) or horizontal (scaling out). Applications can therefore scale up or scale out to avoid performance issues caused by a shortage of resources.