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Friday, March 16, 2012

Introduction to Demand Management

Effective Demand Management avoids unnecessary spend on capacity and reductions in service levels caused by fluctuations in workload or demand.

As a service provider, IT is responsible for providing just enough capacity for services to meet their agreed service levels. Too much capacity is a wasted cost and too little puts service levels at risk. This is described in detail in the Capacity Management process. Remember the Chapters on Capacity Management?

The process of Demand Management is necessary for two main reasons:
• The arrival rate of work, such as transactions sent to a server, print jobs sent to a printer or calls to a Service Desk, is not steady. In other words, there are peaks and troughs over the hour and day, as well as seasonal increases or decreases in demand. There is rarely sufficient flexibility in IT resources to provide just enough capacity to meet the demand at each and every point in time.
• Fluctuations in demand and the challenge of providing just the right amount of capacity are sources of risk that the service provider should minimize. The decision on how much risk is acceptable is taken by the business, which may accept a level of spare capacity (and therefore extra cost) to reduce the risk.
In ITIL parlance, ‘Demand’ refers to the source of the work, such as the submission by the business/customers of batch jobs or a web search. It also refers to the activity that is subsequently generated on IT resources, such as network traffic and read/write calls to storage devices.

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Next: Goals, Purpose & Objectives of Demand Management

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