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Capacity Management > Process > Demand Management
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Capacity Management

Demand Management

The objective of Demand Management is to optimise and rationalise the use of IT resources.

Although Demand Management should be a part of the routine activities of Capacity Management, it takes on special importance when the IT infrastructure is suffering from capacity problems.

The problems Demand Management has to solve in the short term include those arising from:

In these cases, Demand Management is responsible for redistributing capacity in order to ensure that critical services are not affected, or at least to minimise the impact on them. To perform this task efficiently it is essential that Capacity Management be aware of the customer's business priorities and be able to act accordingly.

However, Demand Management over the medium to long term is no less important a task. An increase in capacity always entails costs, and often these are unnecessary. Monitoring capacity properly makes it possible to identify weak points or bottlenecks in the IT infrastructure and assess whether it is possible to redistribute the workload over the long term in order to offer a high quality service without increasing capacity.

For example, an inappropriate distribution of tasks may mean that the broadband capacity the organisation has contracted is inadequate at peak times because thousands of e-mails are being sent by automatic processes, such as promotional marketing campaigns, customer performance reports, etc. In most cases these processes could be rescheduled away from peak times without degrading quality of service, thus saving the organisation the expense of increasing bandwidth.

However, if the cost of increasing bandwidth is slight, it may be more efficient to do so than investing the precious (and costly) time of highly qualified specialist personnel in the task of optimising the system.

Based on past experience and market trends, Capacity Management should assess when the "bigger and more powerful" solution is more cost effective (bearing in mind the indirect costs) than a detailed analysis of the situation.

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