Capacity management is the process of planning and ensuring IT capacity needs of an organization. It factors in current and future business needs of an organization in an economical manner. Capacity management comprised three sub-processes: business capacity management, service capacity management, and component capacity management.

Some of the common capacity management activities are - monitoring the performance and throughput or load on a server, server farm, or property; performance analysis of measurement data, including analysis of the impact of new releases on capacity; performance tuning of activities to ensure the most efficient use of existing infrastructure; understanding the demands on the service and future plans for workload growth; Influences on demand for computing resources and developing a plan for the service.