AFAIK
horizontal - you add more cars. These machines equally mean that they play a similar role. For example, you have a Node server that processes all requests. You install it on three cars. All these machines do the same. When the load is high, you add another machine with the Node server.
vertical - You get the best machines for handling loads. Also, machines play different roles - for example, you have an authentication server on one computer and a Node server on another.
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