Capacity and Performance Management

Capacity management ensures sufficient resources are available to meet current and forecasted demand. It operates at three levels: business capacity (understanding future business needs), service capacity (managing end-to-end service performance), and component capacity (managing individual infrastructure components). Performance management monitors real-time service behaviour against targets, identifying bottlenecks and trends. Together, they prevent both over-provisioning (wasting money) and under-provisioning (degraded service). Cloud computing has transformed capacity management — auto-scaling and elastic resources enable dynamic capacity adjustment.