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Scalability vs. Performance

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Can you please explain the bold part?

"When a system needs to scale, very different types of problems need to be solved. Let us first consider scaling with respect to size. If more users or resources need to be supported, we are often confronted with the limitations of centralized services, data, and algorithms (see Fig. 1-3). For example, many services are centralized in the sense that they are implemented by means of only a single server running on a specific machine in the distributed system. The problem with this scheme is obvious: the server can become a bottleneck as the number of users and applications grows. Even if we have virtually unlimited processing and storage capacity, communication with that server will eventually prohibit further growth."
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