Capacity Management

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What Does Capacity Management Mean?

Capacity management is the process used to ensure the IT capacity is capable of meeting current and future business needs in a cost-effective fashion. In capacity management, the planning and implementation involved unlike other management areas are proactive in nature rather than reactive.


Implementation of capacity management is improved and consistent levels of service and service quality along with lower costs.

Techopedia Explains Capacity Management

Capacity management has close links with financial management and ITIL service level management areas. With the constant change in technology, capacity management helps in identifying opportunities of improvement and also helps in planning the requirements more efficiently and accurately. It can help in finding scalable solutions to various capacity bottlenecks in the organization.

Functions of capacity management:

  • Storage of capacity management data.
  • Ensuring required service levels are met in all disciplines.
  • With respect to resource utilization, analyzing, monitoring, and tuning the necessary modifications.
  • Understanding the current infrastructure performance and analyze the future requirements.
  • With input from other teams, project the annual growth plan for infrastructure.
  • Managing the requirements for computing resources.

Benefits of capacity management:

  • Improvement of performance, reduction of consumption due to fine tuning of applications and components of infrastructure.
  • Improving the efficiency of provision capacity.
  • Elimination of redundant work and ensuring consistent monitoring of infrastructure components.
  • Improvement of IT cost per service unit components.

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Margaret Rouse
Senior Editor
Margaret Rouse
Senior Editor

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.