The IT capacity plan is derived from the current and future resources utilization for holding, storing and accommodating the software services. It is a given fact that servers’ average utilization in the traditional data center is between 5% and 20%. By contract, when planning capacity in the cloud, the basic working assumption is that, utilization should match the demand at all times and support temporary demand peaks and future trends.
Capacity planning is described by Wikipedia as the

“process of determining the production capacity needed by an organization to meet changing demands for its products.” It is also given by the following formula:
(number of machines or workers) × (number of shifts) × (utilization) × (efficiency)

In his CIO’s article about cloud computing capacity, Bernard Golden wrote,
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