Elastic computing refers to the capability of cloud services to dynamically allocate and adjust resources based on the workload demands. This technology enables organizations to scale their computing power up or down as needed, ensuring optimal performance and cost-efficiency. With elastic computing, businesses can handle fluctuations in demand without the need for significant infrastructure investments. By paying only for the resources they actually use, organizations can more effectively manage their budgets, while meeting the needs of applications and users in real-time.