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he Capacity Management process is mainly a proactive one because it is driven by future business need. Therefore the earlier that capacity and performance are considered in the Service Lifecycle, the greater the degree of confidence that a service will be able to meet the required service levels when it is transitioned into operation.

The main challenge for Capacity Management is to predict the demand on resources to be able to provide enough capacity to meet service levels on an ongoing basis.

In IT terms, this means gathering information about business plans, assessing the impact on services and underpinning resources and then buying or upgrading resources (or selling or downgrading resources if demand is falling) in time to avoid either insufficient capacity and missed service levels or excess capacity and unnecessary cost. For this reason, the Capacity Management process is sometimes more memorably summarized as 'Having the right IT capacity in the right place at the right time and at the right cost.'

The Capacity Plan is a key output of this process because it predicts and costs the impact of new and changing business plans on the current IT environment.

This provides IT management with a reliable forecast to support decisions necessary to maintain service stability and achieve the balances described in the Introduction to this chapter. The plan is usually produced annually and synchronized to IT financial planning. Updates may be routinely produced once or twice a year or in response to unexpected changes and new requirements.

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