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Vertical vs Horizontal Scaling

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Hi,
I wanted to learn more about how BungeeCord works with servers when scaling. Is it common for Minecraft servers to use BungeeCord and run each of their servers on the same machine? So as the user base grows, do they use a faster and higher-performance machine? Or is it more common to use one machine per server and scale horizontally as the user base expands?

What is the best way of going around a growing user-base and scaling the network? And how does load-balancing come into play when...

Vertical vs Horizontal Scaling

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