Capacity Management: Importance, Benefits, and Best Practices


Added on  2019-09-22

10 Pages2648 Words476 Views

What is Capacity Management?Capacity management is one of the most important topic being used in the informationtechnology sector. It is considered as a practice that helps in right sizing the IT resources in thebusiness to help meet present and future needs. Capacity management is a practice that isconsidered to be proactive instead of being reactive. This is because the companies doing well incapacity management gain from their operations by minimizing the need of their IT resourcesand fulfill their service needs with the limited IT resources. It has been the primary goal of mostof the companies and business in today’s world facing high competitive pressure. It is also a toolthat helps in managing the cost of the business by limiting their future and present IT needs in amost cost effective manner. One of the most common meaning and analysis of capacitymanagement framework is made in the ITIL framework. This framework helps in explaining theprocess of capacity management by comprising three sub business processes such as businesscapacity management, service capacity management and component capacity management. It isseen that with a change in the information technology services and different types offunctionality evolves then the memory and storage in the central processing unit as well asvirtual service also changes to some extent. Thus, if such changes are studied by the businessfrom before then it becomes beneficial for the business propose their capacity planning for the ITservices. Capacity management also forms a close link with the financial management areas over the timein the business. Further, there are other areas in which capacity management works effectivelysuch as supporting constant change in technology, identifying the opportunities available for theimprovement in the business, conducting planning process for effective and accurate resourcerequirement. Thus, the term capacity building is used to understand the scalable solutions that the

practice offers to various kinds of capacity bottlenecks in the business. Thus it has been the mostimportant solution to all the IT practices involved in the business. Further, the capacitymanagement in a business is also related to other resources along with information technology. Itensures that right amount of resources are available where needed at a specific time and placeand at the right price. Thus, the resources here can be human resource, financial resource andothers along with IT resource. The major aim of capacity management is to ensure that there isenough amount of capacity in the business to conduct various activities. However, there isanother meaning as well that is to ensure that there is not too much capacity of resources abusiness has that might lead to wastage and excessive cost to the business. Thus, capacitymanagement needs is to be maintained in all areas of business and not only IT. This means itshould include both business operational as well as technical need.The notion of capacity management take into consideration that both current and future needsshould be anticipated in a planned manner to avoid getting any capacity issue. The anticipatedneeds should be documented carefully, analyzed, set priorities and then convert it into a set ofdemands for IT department. However, the capacity management cannot be retro fit which meansthat if there is poor performance due to poor capacity management then it is too late to improveit. Good capacity management decision thus needs proper planning and a clear analysis ofinformation of that there is no future issues or capacity shortage. This is because an efficient andproper capacity management helps in the creation of company success and minimize the rate ofissues that takes place. Benefits of Capacity ManagementEffective capacity management is seen to deliver various kinds of benefits to the organizationboth in short term and in long term. There are both tactical benefits as well as efficiency

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