Capacity management ensures that the business is able to deliver existing and future IT infrastructure requirements at the right moment, right time and in the most cost- effective way.  Capacity management falls under the Service Delivery of ITIL® and involves three other sub-processes namely, Business Capacity Management, Service Capacity Management and Resource Capacity Management.  In ITIL® v3, Resource Capacity Management was renamed Component Capacity Management.

IT is ever expanding and growing and requirements in terms of processing power, memory and other hardware components immediately follow.  Without capacity management, businesses will continually make unnecessary upgrades resulting in unwanted expenses.  But with capacity management or ITIL®, these will be eliminated because organizations will be able to monitor, analyze and fine tune current server load and then properly predict how and what the demands will be over time.

Organizations which choose to implement capacity management or ITIL® in their businesses will reap the long term benefits of their investment.  By being proactive in their approach to business needs rather than reactive, organizations can maximize their IT resources and increase performance of applications and infrastructure components by proper performance analysis of existing and new releases.

Organizations will also be able to get rid of redundant work by fine tuning performance of existing infrastructure and identifying the most efficient way to use it. With an efficient infrastructure, organizations will be more accurate and consistent in their reporting which will enable them to have informed business decisions and plans.

Being less reactive, capacity management or ITIL® will save the company unnecessary expenses because it identifies the possible sources of business growth hindrances and can immediately provide corrective actions before it happens.

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