Also called scaling up.
You have one server:
┌───────────────┐
Users ──────►│ Server │
│ │
│ 4 CPU │
│ 8 GB RAM │
│ 100 GB SSD │
└───────────────┘
Your application runs there.
If your application becomes too slow, you upgrade the server:
┌──────────────────────┐
Users ──────►│ Server │
│ │
│ 32 CPU │
│ 128 GB RAM │
│ 2 TB SSD │
└──────────────────────┘
You’re making the same machine more powerful.
Example
You have:
8 GB RAM
4 CPU
and upgrade to:
64 GB RAM
16 CPU
That’s vertical scaling.