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Cloud computing has evolved as an effective technology in the past few years. It is playing an important role in information technology. The main characteristics and challenges of cloud computing are 100% availability and Scalability. To achieve these two things we have concepts like Load balancing and auto-scaling in the cloud. In this paper, we will discuss auto-scaling and the two different ways to achieve auto-scaling. The commonly used auto-scaling technique is fixed threshold-based auto-scaling and it is further modified as adaptive threshold-based auto-scaling. Auto-scaling can scale up or down the cloud resources based on demand, which means the virtual machines are automatically launched or deleted based on the requirement. As Auto-scaling provides better fault tolerance, better availability, and cost management, it improves an organization’s service level agreements.