The biggest issue we have with these giant dbs is they require pretty massive amounts of RAM. That's currently our main bottle neck.
But I agree. While our design is pretty bad in a few ways, the amount of data that we are able to serve from these big DBs is impressive. We have something like 6 dedicated servers for a company with something like 300 apps. A hand full of them hit dedicated dbs.
Were I to redesign the system, I'd have more tiny dedicated dbs per app to avoid a lot of the noisy neighbor/scaling problems we've had. But at the same time, It's impressive how far this design has gotten us and appears to have a lot more legs on it.
Sql server data is stored as a BTree structure. So a 10 -> 100gb growth ends up being roughly a 1/2 query performance slowdown (since it grows by a factor of log n) assuming good indexes are in place.
Filtered indexes can work pretty well for improving query performance. But ultimately we do have some tables which are either archived if we can or partitioned if we can't. SQL Server native partitioning is rough if the query patterns are all over the board.
The other thing that has helped is we've done a bit of application data shuffling. Moving heavy hitters onto new database servers that aren't as highly utilized.
We are currently in the process of getting read only replicas (always on) setup and configured in our applications. That will allow for a lot more load distribution.
EVENTUALLY, yes even read query performance also would degrade, but typically the insert / update load on a typical index is the first limiter.
The trick is to have the right indexes (which includes the interior structures of the storage data structure) so that queries jump quickly to the relevant data and ignore the rest. Like opening a book at the right page because the page number is known. Sometimes a close guess is good enough.
In addition, small indexes and tree interior nodes should stay hot in RAM between queries.
When the indexes are too large to fit in RAM, those get queried from storage as well, and at a low level it's analogous to the system finding the right page in an "index book", using an "index index" to get that page number. As many levels deep as you need. The number of levels is generally small.
For example, the following is something I worked on recently. It's a custom database (written by me) not Postgres, so the performance is higher but the table scaling principles are similar. The thing has 200GB tables at the moment, and when it's warmed up, querying a single value takes just one 4k read from disk, a single large sector, because the tree index fits comfortably in RAM.
It runs at approximately 1.1 million random-access queries/second from a single SSD on my machine, which is just a $110/month x86 server. The CPU has to work quite hard to keep up because the data is compressed, albeit with special query-friendly compression.
If there was very little RAM so nothing could be kept in it, the speed would drop by a factor of about 5, to 0.2 million queries/second. That shows you don't need a lot of RAM, it just helps.
Keeping the RAM and increasing table size to roughly 10TB the speed would drop by half to 0.5 million queries/second. In principle, with the same storage algorithms a table size of roughly 1000TB (1PB) would drop it to 0.3 million queries/second, and roughly 50,000TB (50PB) would drop it to 0.2 million. (But of course those sizes won't fit on a single SSD. A real system of that size would have more parallel components, and could have higher query performance.) You can grow to very large tables without much slowdown.
This is a bit of a simplification, but probably less than you'd think. It's definitely true in spirit - the assumptions that I'm making are pretty reasonable. Lots of people don't quite get their head around all this at first, but it's easier to understand with experience. It doesn't help that most pictures of B-Tree indexes are very misleading. It's closer to a bush than to a tree, really.
Proper indexing is key of course, and metrics to find bottlenecks.
Of course, if your application rarely makes use of older rows, it could still make sense to offload them to some kind of colder, cheaper storage.