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The capacity planning for IT resources is a quite complicated task. Because business can be unpredictable, it is hard to calculate the required resources. Besides, you always have to provide enough servers to handle the maximum workloads. The following diagram illustrates this circumstance.

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But this approach has substantial disadvantages. A major part of the provisioned resources is wasted (see next diagram).

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Moreover, many companies are not able to predict exactly the upcoming traffic in the next weeks, month or years. This fact regards websites as well as business applications.

Cloud Technologies are the key to solve this problem. Virtual servers in the cloud with elastic scaling provide the following features.

  • You can scale up and down your capacity. And you only pay for the resources, you are actually use.
  • Scaling up and down is done automatically. The capacity is adjusted on the basis of different criteria (e.g. network in/out or CPU utilization).

This simple approach avoids unnecessary investments in on-premise IT-infrastructure. You actually save money! Besides, it’s no longer a problem to handle unexpected traffic. That means, you increase your agility! For example, your marketing department can start advertising campaigns, without worrying about the IT capacity.

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Cloud providers like Amazon Web Services allow you the following operations with virtual servers:

  • scale up, as the workload grows
  • shut down resources, that are no longer required
  • you can do all this operations instantly and fully automatically
  • when you scale down, you don’t pay for the infrastructure
  • you can do this with all kinds of servers and technologies e.g. web servers or application servers like SAP NetWeaver AS ABAP etc…

With these features, companies are well positioned to meet even extreme requirements. They save money and increase their agility.

Thanks for reading!

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2 Comments

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  1. Marlyn Zelkowitz

    Also accelerates use and purchase of SAP, partner and /or competitor solutions. If you don’t have to procure the hardware and databases, the adoption cycle is much faster. Customers benefit from using the new technology – and can innovate faster. Win-win-win all around.

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    1. Michael Herzog Post author

      Hi Marlyn,

      thanks for your addition! One cannot overemphasize the advantages of cloud computing. But it’s also important to have enough arguments to convince potential customers of these technologies.

      Regards

      Michael

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