Network capacity planning: How to and 10 best practices

Network slowdowns and outages are more than just a nuisance — they can drain valuable time and money from your business.

Many organizations struggle with these issues because they fail to plan for capacity. Without a clear strategy, your network may not handle the growing demands of users and applications, leading to frustration and decreased productivity. 

Network capacity planning is a strategic process that helps you anticipate future needs, ensuring your network can handle peak usage and support business growth. 

In this article, we’ll dive into the steps and best practices to achieve a resilient and efficient network infrastructure. We’ll cover:

• What is network capacity planning?
• How to conduct network capacity planning
• 10 best practices for network capacity planning
• Common challenges in network capacity planning
• Next steps: Scale with Meter

What is network capacity planning?

Network capacity planning is the process of assessing and predicting the network's bandwidth and performance needs. It generally involves: 

• Monitoring current usage
• Predicting future needs
• Allocating resources 
• Continuous monitoring 
• Regular adjustments 

This process ensures the network can handle current and future demands without slowing down. 

Whether your organization needs to add new users and applications or accommodate increased traffic, capacity planning helps avoid network congestion and maintain efficient operations. 

How to conduct network capacity planning

Conducting network capacity planning involves a series of steps designed to evaluate current network performance and predict future requirements. 

Assess current network performance

The first step in network capacity planning is to assess the current network performance by gathering detailed data on how the network is being used and its overall performance. 

Start by using network monitoring tools to collect information on key performance metrics such as: 

• Bandwidth usage: To understand the amount of data being transferred at any given time. Identify peak usage periods and the types of applications consuming the most bandwidth.
• ‍Latency: To assess the delay in data transmission, as high latency can significantly affect user experience.
• ‍Packet loss: To pinpoint where data packets fail to reach their destination, as it indicates network reliability issues.

These metrics help you identify existing bottlenecks and areas for improvement. The assessment step forms the foundation for effective capacity planning, helping you make informed decisions about necessary upgrades and optimizations. 

Forecast future network needs

To forecast future network needs, analyze business growth and technology trends. Start by reviewing your organization’s growth plans, including staff increases, market expansion, new facilities, and new services.

Consider technology trends like cloud services, video conferencing, and IoT devices that may increase network demand. Understanding these trends helps anticipate additional strain on your network.

Based on this analysis, estimate future bandwidth and resource needs to prevent issues and ensure your network can handle growth without compromising performance.

Identify bottlenecks and limitations

Every network has some issues and limitations. Pinpoint areas where the network is currently constrained or could potentially face constraints in the future to get a better idea of what you need to plan for. 

Start by thoroughly analyzing the data collected on current network performance. Patterns that indicate slowdowns or interruptions in service can include:

• Frequent high latency spikes during peak usage times.
• Consistent packet loss in certain segments of the network.
• Bandwidth saturation on specific links or connections.
• Recurring downtime or crashes of particular devices.
• Slow response times from critical applications.

Use this data to identify which specific devices or applications are causing these bottlenecks. For example, a certain switch or router might be consistently overloaded, or specific applications may be consuming too much bandwidth. 

Identifying these problem areas allows you to take targeted actions to address them when developing your capacity plan. 

Develop a capacity plan

A capacity plan begins with an outline of the necessary upgrades and expansions needed to meet current and future demands. 

Start by creating a detailed list of required improvements based on the assessment and analysis from previous steps. Your capacity plan should include: 

• Hardware upgrades: Recommend new routers, switches, and increased bandwidth to improve performance.
• Software optimizations: Update and configure software for better network management and efficiency.
• Infrastructure enhancements: Upgrade cabling and data centers to support more capacity.
• Security improvements: Enhance firewalls, encryption, and security protocols to protect the network.
• Monitoring and maintenance: Set up tools for real-time monitoring and schedule regular maintenance.
• Budget and timeline: Allocate funds and create a timeline for implementing the upgrades.

Focus on the most critical needs first. 

Keeping your budget in mind, identify upgrades that will have the greatest impact on network performance. Allocate resources to ensure the most essential improvements are addressed.

Implement changes

Now it’s time to implement the changes outlined in your capacity plan. Begin by: 

• Carefully planning the implementation to ensure minimal disruption to network services.
• Deploying additional resources such as increased bandwidth, new routers, and upgraded switches. 
• Ensuring seamless integration into the existing network infrastructure. 
• Reconfiguring network settings to optimize performance and make use of the new resources.

Coordinate the implementation during off-peak hours or scheduled maintenance windows to minimize the impact on users. Communicate with your team and users about any potential disruptions and provide updates on the implementation's progress.

Monitor and adjust

Network capacity planning isn’t a one-time project. It’s an ongoing process to keep your network robust, efficient, and capable of supporting growth and evolving needs. 

Begin by setting up tools to continuously track network performance, focusing on key metrics like bandwidth usage, latency, and packet loss.

Review the data collected regularly to ensure the network is performing as expected. Reviews will help you identify any new issues or areas that still need improvement. Be prepared to adjust the capacity plan to address these new challenges and demands.

10 best practices for network capacity planning

Implementing best practices in network capacity planning makes for a smooth implementation process. Here are ten essential practices to guide your efforts:

1. Regular monitoring and data collection

Regularly monitoring and collecting performance data is crucial for understanding usage patterns and ensuring network efficiency. It can help you:

• Prevent downtime: Helps prevent unexpected network failures.
• Perform proactive maintenance: Allows for proactive issue resolution, reducing disruptions.
• Support growth: Helps plan for future expansions.

Without regular monitoring, unexpected spikes in traffic can lead to network slowdowns or outages, affecting business operations.

Meter provides a centralized dashboard for real-time insights into network performance to help you quickly detect and resolve issues. Without real-time monitoring, problems can go unnoticed until they cause significant disruptions.

2. Incorporate redundancy

Building redundancy into your network design is essential for preventing single points of failure and maintaining network reliability.

Network redundancy is used to provide alternative paths for traffic flow so that data can keep moving, even if one path fails. Build redundancy into your network design with:

• Multiple pathways: Design multiple network paths to ensure data can travel alternative routes if one path fails.
• Redundant hardware: Use duplicate routers, switches, and servers to take over in case of hardware failure.
• Backup power: Implement uninterruptible power supplies (UPS) and backup generators to keep the network running during power outages.
• Failover mechanisms: Set up automatic failover systems that switch to backup hardware or pathways when a failure is detected.

Meter’s network is built with redundancy in mind. We install in any commercial space, providing a complete IT closet/server room buildout with redundant ISP connections.

3. Scalability considerations

Designing your network with scalability in mind ensures it can accommodate growth. 

Without scalability, your network may become overwhelmed as demands increase, leading to performance issues and costly upgrades. Implement scalable technologies and solutions like:

• Modular hardware that can be added or upgraded as needed to expand capacity.
• Cloud services to easily scale storage and processing power based on demand.
• Virtualization to efficiently manage and allocate resources.

Scalable solutions also allow for incremental upgrades to avoid large, upfront investments.

Meter’s cloud-based infrastructure offers scalable solutions like modular hardware and switches with virtualization and digital twin capabilities. Watch our webinar to learn more about the Meter Switch Platform and get a sneak peek at upcoming features. 

4. Optimize current resources

Optimizing current resources makes the most of your existing network infrastructure to improve performance before considering expensive upgrades. 

Start by implementing traffic shaping techniques to manage the flow of data across your network, including: 

• Bandwidth limiting: Limit bandwidth for non-critical applications to use resources more effectively.
• Priority queuing: Assign higher priority to critical data packets so they are transmitted first.
• Rate limiting: Control the rate at which data is sent or received to prevent network congestion.

Quality of Service (QoS) policies also help prioritize network traffic so that high-priority services, like voice and video conferencing, get precedence over less critical activities. 

Regularly review and adjust your network configurations to reveal areas where adjustments can be made. For example, tweaking settings on routers and switches or redistributing traffic to alleviate congestion.

5. Forecast with accuracy

Forecasting uses reliable data and analysis to anticipate network changes over time. Use accurate forecasting methods like:

• Trend analysis: Examine historical data to identify patterns and predict future usage based on past trends.
• Regression analysis: Use statistical techniques to model and predict network demand based on factors like user growth or application usage.
• Scenario planning: Create different scenarios based on potential business growth, new applications, and changing user behaviors.

Consider business growth projections in your forecasts. Account for factors like increased staff, new office locations, or expansion into new markets. These changes often lead to higher network demands.

User behavior is another crucial factor. Analyze current usage patterns and predict how they might change in the future. For example, more remote work or increased use of video conferencing can drive up network traffic

6. Engage stakeholders

Involve key stakeholders throughout the planning process to align business needs with technical requirements. 

Start by identifying the main stakeholders, which typically include IT staff, department heads, and executive leadership. Then make sure to:

• Hold regular meetings to discuss current network performance, future needs, and potential upgrades. 
• Gather input on business objectives, upcoming projects, and expected growth. 
• Encourage open communication to address any concerns or requirements stakeholders may have.

Collaboration with stakeholders helps align the capacity plan with both operational efficiency and strategic business initiatives.

7. Document and communicate plans

Thoroughly document every step of your capacity planning process, including data analysis, forecasting methods, and identified bottlenecks. 

This detailed documentation provides a clear record of your approach and the rationale behind your decisions. Once the plan is documented: 

• Communicate it clearly to all relevant parties. 
• Share with key stakeholders, including IT staff, department heads, and executive leadership. 
• Use straightforward language and visuals to make the information accessible.

Effective communication helps everyone understand the planned changes, timelines, and benefits expected from the capacity plan.

8. Consider security implications

When planning network capacity, ensure security is not compromised. Start by evaluating your current security measures and how they will scale with additional capacity.

Consider potential security risks from expanding the network, such as whether firewalls, intrusion detection systems, and encryption protocols can handle the increased load. Plan for additional security resources if needed, like enhanced monitoring tools and stricter access controls.

Integrate security considerations into every step of your capacity planning process to protect sensitive data and maintain network integrity as it expands.

9. Use automated tools

Leverage automated tools to streamline data collection, analysis, and the planning process. 

Automated solutions provide real-time insights into network performance, helping you quickly identify trends and potential issues.

Meter’s solutions can significantly simplify your capacity planning efforts.

Our centralized platform offers advanced features for monitoring, managing, and optimizing network resources. Automating these tasks allows you to save time and reduce the risk of human error.

10. Review and update regularly

Regularly reviewing and updating your capacity plan keeps it relevant. 

Conduct periodic reviews to assess how well the current plan meets your network's demands. These reviews help identify any new challenges or areas needing improvement.

As your organization grows and technology evolves, your network requirements will change. Adjust the plan to incorporate these new factors so that it continues to support your operations effectively.

Consistent review and updates keep your network capacity aligned with organizational goals.

Common challenges in network capacity planning

Network capacity planning often faces several common challenges that can affect implementation, including: 

• Rapidly changing technology: Technology evolves quickly, making it challenging to keep the network infrastructure up to date. 
  • Solution: Stay informed about industry trends and integrate flexible, scalable solutions that can adapt to new technologies. Regularly review and update your network components to the latest advancements.

• Unpredictable growth: Unexpected business growth can strain network resources. 
  • Solution: Use forecasting methods that consider growth scenarios and implement scalable technologies. This approach helps maintain network performance even during rapid expansion.

• Budget constraints: Limited budgets can prevent upgrades to network infrastructure.
  • Solution: Prioritize critical upgrades based on their impact on performance and explore cost-effective solutions. Use automated tools for efficient resource management and consider phased implementation to spread out costs over time.

Next steps: Scale with Meter

Network scalability and efficiency start with a strong infrastructure. 

Meter simplifies network capacity planning with our seamless, cloud-managed Network as a Service.

We provide an end-to-end solution that handles everything from design and installation to ongoing maintenance and support. Meter users enjoy: 

• Supercharged security: Our centralized platform monitors, manages, and enforces security policies with DNS security, malware protection, VPN capabilities, and real-time insights to prevent unauthorized access and ensure data integrity.
• ‍Complete network transparency: Monitor and control your network remotely with our intuitive dashboard, automating configurations and eliminating manual IT intervention.
• ‍Improved speed and reliability: Integrated security appliances, routing, and switching ensure seamless network interoperability, high availability with redundancy, and preventive enterprise controls.
• ‍Modular hardware and upgrades: Your fee includes all hardware and software. You’ll also get complimentary upgrades and relocation services if you move to a new space.
• ‍Automatic failover: We support multiple ISPs for failover. We’ll work with you to determine which configuration is best for your company.
  

Get in touch for a demo of Meter and see how we can support your network capacity planning efforts.