Scaling Up an Elasticache Instance?

You can now scale up to a larger node type while ElastiCache preserves:

https://aws.amazon.com/blogs/aws/elasticache-for-redis-update-upgrade-engines-and-scale-up/

Yes, you can instantly scale up a running Elasticache instance type to a larger size. I've tested it and experienced very little actual downtime (I think a few seconds at first, but very quickly it's back online, even while the Console will show the process taking roughly a few minutes to actually finish.) I went from a t2.micro to a m3.medium with no problem.

Elasticache feels more like a cache solution in the memcached sense of the word, meaning that to scale up, you would indeed fire up a new cluster and switch your application over to it. Performance will degrade for a moment because the cache would have to be rebuilt, but nothing more.

For many people (I suspect you included), however, Redis is more of a NoSQL database solution in which data loss is unacceptable. Amazon offers the read replicas as a "solution" to that problem, but it's still a bit iffy. Of course, it offers replication to reduce the risk of data loss, but it's still nowhere near as production-safe (or mature) as RDS for a Redis database (as opposed to a cache, for which it's quite perfect), which offers backup and restore procedures, as well as well-structured change management to support scaling up. To my knowledge, ElastiCache does not support changing the instance type for a running cluster. This suggests that it's merely an in-memory solution that would lose all its data on reboot.

I'd go as far as saying that if data loss concerns you, you should look at a self-rolled Redis solution instead of simply using ElastiCache. Not only is it marginally cheaper to run, it would enable you to change the instance type like you would on any other EC2 instance (after stopping it, of course). It would also enable you to use RDB or AOF persistence.