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Rightsizing, in the context of IT, refers the process of restructuring or reorganizing a company's IT infrastructure, networking, storage, data centers, hardware or other critical components in an effort to get the highest possible value from those services.
Rather than focusing on cutting costs or expanding service, rightsizing aims to look at the bigger picture to identify and maintain the correct level of IT assets required to get the job done.
In IT, rightsizing refers to a balanced approach to cost reduction that aims to generate savings while still maintaining the strategic operational value of IT infrastructure. This is accomplished by taking a holistic look at the IT system in question, examining what resources are needed, and looking at ways to get the job done better, more efficiently and at a lower cost. This can be achieved by:
New, more scalable technology, such as cloud computing and virtualization, have also simplified the process of right-sizing by providing elastic service models that can be expanded to meet an organization's needs.