Scalability Design Questions

What happens when a database needs to scale beyond a single server? Is this
something PostgreSQL can do?

Further, does a database need to be designed differently if it's going to be
used on more than one server? I know there are many issues that might effect
a database's ability to scale; but specifically, will a well designed single
server database be easily adapted to multiple servers, or will the design
have to be adjusted? Example that might make the question more clear: from
my perspective, in terms of simplicity it'd be ideal if when a database is
deployed on multiple servers, the database responds as if it's simply
deployed on a more powerful box. But of course it may be more complicated
than that <g>.
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