Network capacity planning: 7 best practices to follow

Network capacity planning is critical for preparing your network to handle current demands while also anticipating future needs. 

Effective capacity planning is especially important during periods of growth, when launching new services, or expanding infrastructure.

By focusing on these aspects, business leaders and network engineers can effectively manage their networks, avoiding congestion and controlling costs while supporting ongoing growth.

Discover the 7 best practices for network capacity planning and more:

• 1. Assess current network capacity
• 2. Accurately forecast network traffic
• 3. Determine future network requirements
• 4. Implement a scalable network design
• 5. Optimize network performance and reliability
• 6. Ensure network security during capacity expansion
• 7. Maintain a detailed documentation process
• Common challenges in network capacity planning
• How Meter’s NaaS solution can help

1. Assess current network capacity

Evaluating your current network capacity is the foundational step in effective network capacity planning. It’s important to start with a detailed examination of your network's performance to understand how well it meets existing demands and where it might be falling short.

During this assessment, you should determine how much network capacity businesses should typically maintain to meet both current and anticipated demands.

Evaluate network performance

Starting with a comprehensive evaluation of your network’s current performance is key to understanding its capacity. Use advanced tools like network analyzers and performance monitoring software to gain insights into the traffic flow, bandwidth utilization, latency, and packet loss.

Identifying bottlenecks and underperforming components

After collecting performance data, it’s important to focus on identifying bottlenecks and components that may not be operating efficiently.

Bottlenecks can occur when certain network links or devices are overutilized, causing congestion that impacts the entire system. This could be due to outdated hardware, misconfigurations, or an imbalance in traffic distribution.

Addressing these issues may involve upgrading hardware, optimizing configurations, or implementing more effective traffic management strategies.

Continuous monitoring and data collection

Continuous monitoring tools, such as Meter’s dashboard, provide real-time data on network health. This constant data flow ensures you have a clear view of your network’s performance.

Historical analysis for trend identification

Alongside real-time monitoring, analyzing historical data plays a significant role in capacity planning. Examining how your network has performed over time can reveal patterns, such as recurring congestion or gradual increases in traffic that might suggest the need for future upgrades. Identifying these trends helps in planning for scalability and preparing your network for changes in demand.

Understanding application demands

Different applications have unique bandwidth and latency needs. 

By configuring the network to meet these specific demands, such as prioritizing traffic or adjusting Quality of Service (QoS) settings, you can support a variety of data flows without compromising performance.

Evaluating physical network components

The physical components of your network, such as cabling, cooling systems, and power supplies, also play a significant role in overall performance.

Aging cables can lead to data transmission errors, while inadequate cooling can cause hardware to overheat, leading to failures. 

Regular inspections and maintenance of these physical elements are necessary to keep the network functioning at its best.

2. Accurately forecast network traffic

Forecasting future traffic accurately is key to capacity planning. This process relies on predictive analytics to anticipate future needs based on historical data and business plans.

Analyze historical data

The first step in forecasting network traffic is a thorough analysis of historical data, which includes evaluating when and how traffic spikes have occurred in the past. For instance, significant traffic increases might coincide with product launches, promotional campaigns, or other business activities that drive higher engagement.

Historical data also helps in identifying long-term trends. For example, if there is a noticeable increase in traffic every year during a specific season, your forecast should account for this predictable surge.

Using predictive analytics

Predictive analytics tools are invaluable for projecting future network traffic. These tools analyze historical data alongside other variables such as business growth, potential shifts in customer behavior, and upcoming changes in your operations.

For example, if your company plans to launch a new digital service, predictive analytics can estimate the additional load this will place on your network. Similarly, expanding into new markets or executing a significant marketing initiative may lead to increased network traffic.

Plan for seasonal and business cycle variations

Many businesses experience predictable fluctuations in network demand based on seasonal patterns or specific business cycles. 

Retailers, for instance, often see traffic surges during the holiday season, while other sectors might experience spikes at the end of fiscal quarters or during annual industry events.

Prepare for new applications and services

Introducing new applications or services can significantly alter your network's traffic profile. These changes often come with increased data transfer rates, different usage patterns, and additional strain on your network infrastructure. 

It's important to understand the specific demands that new applications or services will place on your network.

Working closely with your development and operations teams to estimate these demands is key to maintaining optimal performance. You might also consider running simulations or pilot programs to test how your network responds under these new conditions.

Adjusting your capacity plans based on these insights can help avoid unexpected bottlenecks and performance issues.

3. Determine future network requirements

In planning for future network needs, server capacity planning should be a key focus, ensuring your infrastructure can scale with growing demands. The process involves estimating traffic growth and considering how new applications or services might impact network performance.

Align network capacity with business goals

Begin by connecting your network capacity to your business's strategic direction. Identify key initiatives, such as expanding digital services, adopting cloud-based applications, or increasing remote work capabilities, that will drive network demand.

For example, if your company is planning to launch new digital services, the network will need to support additional traffic while maintaining performance standards.

Estimate future traffic growth

Forecasting traffic growth requires a combination of historical analysis and predictive modeling with:

• Historical data analysis: Reviewing past traffic patterns helps identify trends and seasonal fluctuations that can inform capacity planning.
• Predictive analytics: Utilize tools to model future traffic based on historical data and projected business growth.
• Business projections: Collaborate with other departments to understand their future plans.

Planning for new applications and services

Assess the impact of new applications and services on the network before they are deployed. Here’s what to consider:

• Bandwidth and latency needs: Applications involving video streaming or large data transfers can place significant demands on the network.
• Scalability considerations: Design your network to scale with these demands. Using modular switches that allow for expansion can help your network grow alongside your business.

Balancing over-provisioning and under-provisioning

Finding the right balance between over-provisioning and under-provisioning is important for efficient network management:

• Over-provisioning risks: While over-provisioning provides a safety buffer, it can also lead to unnecessary costs due to underutilized resources.
• Under-provisioning risks: Under-provisioning can lead to network congestion and performance issues during peak times.

Adopt a modular approach to network design

A modular approach to network design offers the flexibility needed to adapt to changing business needs:

• Modular infrastructure: Consider implementing modular switches and routers that support easy upgrades.
• Cloud integration: Integrating cloud services into your network design can provide scalable resources that can be adjusted based on demand.

4. Implement a scalable network design

When planning a network, the ability to scale effectively is a non-negotiable aspect. It’s about designing an infrastructure that can grow and adapt in response to increasing demands or changes in business operations.

Instead of having to overhaul the entire system every time there’s a need for more capacity, a scalable network allows you to expand incrementally, preserving both time and resources.

Modular components as building blocks

A modular design approach stands out as a practical method for achieving scalability. This strategy allows for seamless growth and adaptation to changing network demands:

• Scalable switches and routers: Deploying switches and routers that support port expansion or module upgrades is a foundational step. These devices allow for increased capacity through simple enhancements rather than complete replacements, thereby reducing potential downtime and costs associated with scaling.
• Layered network design: A network designed with distinct layers, such as core, distribution, and access, permits independent upgrades. This strategy enables businesses to address specific bottlenecks or capacity issues at one layer without affecting the others, leading to a more flexible and manageable scaling process.

Incorporate cloud and hybrid solutions

Cloud computing has revolutionized how networks can be scaled. Shifting certain network functions to the cloud allows businesses to scale up or down based on real-time demands without significant changes to their physical infrastructure.

Embracing cloud solutions can lead to greater efficiency and adaptability by using:

• Cloud elasticity: Cloud services offer dynamic resource allocation, which means businesses can adjust their computing power, storage, and bandwidth as needed. During periods of high demand, additional resources can be provisioned and scaled back when no longer necessary.
• Hybrid models: Many organizations opt for a hybrid cloud approach, combining on-premises infrastructure with cloud solutions. This model provides the flexibility to keep critical data and applications on-premises for security or compliance reasons, while still leveraging the scalability of the cloud for other functions.

Plan for future demands

While over-provisioning can lead to wasted resources, under-provisioning can result in performance issues as the network struggles to handle increased traffic. Striking the right balance is important for maintaining efficiency and scalability:

• Bandwidth considerations: As businesses adopt more cloud-based services and add new users or devices, bandwidth requirements will naturally increase. Investing in higher-capacity connections now can prevent the need for costly upgrades later.
• Technology upgrades: Staying ahead of technological advancements is another way to future-proof your network. Implementing new standards like Wi-Fi 6 (802.11ax) improves performance and efficiency in high-density environments, offering significant benefits in terms of capacity and performance.

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Note: When Meter introduces Wi-Fi 7 access points to its lineup in Spring 2025, Meter will automatically upgrade customers as part of our proactive service.

5. Optimize network performance and reliability

Optimizing network performance means managing traffic, maintaining infrastructure, and monitoring the system proactively.

Traffic management: Load balancing and QoS

Effective traffic management starts with distributing network traffic across multiple servers or network paths to avoid overloading any single component.

Load balancing is a key strategy for achieving this. It can be implemented in different layers of the network:

• Layer 4 load balancing deals with the transport layer, using information such as IP addresses and TCP/UDP ports to route traffic efficiently. This method is efficient for basic traffic distribution.
• Layer 7 load balancing operates at the application layer, offering more detailed control by considering content such as HTTP headers or URLs. This is particularly useful for optimizing web applications.

In addition to load balancing, Quality of Service (QoS) is another tool that helps prioritize traffic. 

For example, during high usage periods, video conferencing traffic might be prioritized over bulk file transfers to maintain a higher quality of service for time-sensitive applications.

Regular maintenance: Firmware and hardware upgrades

Firmware updates play an important role in this process by addressing security vulnerabilities, enhancing performance, and occasionally introducing new features. Applying these updates helps keep your network infrastructure up to date and capable of handling evolving demands.

In some cases, hardware upgrades become necessary as network traffic and performance requirements increase.

Older equipment might not be capable of supporting the higher throughput or processing power required by modern applications. Upgrading to newer, higher-capacity switches, faster routers, or more powerful firewalls can provide the necessary bandwidth and processing capabilities to meet current and future network needs.

Proactive monitoring: Staying ahead of issues

Proactive monitoring is key to preventing potential issues before they escalate into larger problems.

Network monitoring tools provide real-time insights into traffic patterns and system health, which are critical for maintaining optimal network performance. Utilizing advanced tools and techniques ensures that the network remains reliable:

• Real-time traffic analysis: Monitoring tools continuously track the flow of data across the network, allowing for the identification of congestion points or inefficiencies. If a particular link consistently reaches its capacity limits, it might be time to consider upgrading that part of the network or redistributing the traffic to prevent slowdowns.
• System health monitoring: These tools also monitor the status of network hardware, including metrics like CPU usage, memory utilization, and temperature readings. Early warnings from these metrics can signal potential failures, giving your team time to address issues before they impact network performance.
• Alerting and reporting: Many monitoring systems come with alerting features that notify your team when certain thresholds are breached or specific events occur. This allows for rapid response to potential issues, minimizing their impact. Regular reports generated by these systems offer valuable insights into network performance trends and can guide future planning and optimization efforts.

6. Ensure network security during capacity expansion

Network expansion introduces new entry points for potential threats. Security should be integral to your capacity planning process.

Assess new hardware and software for security risks

Before integrating any new hardware or software into your network, it's important to conduct comprehensive security evaluations. Each new component should be examined for potential vulnerabilities, such as outdated firmware, insecure default settings, or compatibility issues with existing security protocols.

Compatibility with current security measures, such as encryption standards and authentication methods, is a key consideration. For instance, new hardware should support advanced security features like WPA3 for wireless connections and AES-256 encryption for data protection.

Enhance perimeter defenses

As network capacity grows, so does the risk of unauthorized access. Strengthening firewall configurations should be a top priority. It's important to evaluate whether your current firewall solutions are capable of handling the increased traffic while effectively blocking unauthorized access.

In addition to firewall adjustments, consider integrating intrusion detection and prevention systems (IDPS) into your network security strategy. IDPS monitors network traffic in real-time, identifying and responding to potential threats before they can inflict damage.

Encrypt data during expansion

Expanding network capacity often leads to increased amounts of data in transit and at rest, heightening the importance of data protection.

Encryption is a key strategy in safeguarding this data, as it renders sensitive information unreadable to unauthorized parties, even if intercepted. Apply encryption to both data at rest (stored on devices) and data in transit (moving across the network).

For instance, using TLS (Transport Layer Security) helps secure communications over the Internet by encrypting the data being exchanged. Similarly, implementing full-disk encryption (FDE) on servers protects stored data, ensuring that it remains inaccessible without the proper decryption key.

Apply network segmentation

Network segmentation involves dividing a larger network into smaller, isolated segments, each governed by its own set of security controls. Doing so enables any potential security breach to be contained within a specific segment, reducing the risk of it spreading across the entire network.

As an example, a network that handles sensitive customer data can be separated from one used for general business operations. This separation lowers the risk of a breach in one area, compromising the integrity of the entire system, thus enhancing overall security management.

Conduct regular security audits

Regular security audits play a key role in identifying and addressing vulnerabilities that might have been introduced during capacity expansion.

These audits should include penetration testing, where security professionals attempt to exploit potential weaknesses, as well as thorough reviews of security policies and configurations.

Insights from these audits are valuable for updating security protocols to keep them effective against evolving threats. Additionally, incident response plans should be revised based on audit findings, allowing your team to react swiftly and effectively to any security incidents that may arise.

Monitor network traffic for suspicious activity

As your network grows, managing the increased volume and complexity of traffic becomes more difficult, particularly when it comes to identifying potential security threats.

Advanced network monitoring tools that leverage machine learning are valuable in this scenario. These tools analyze traffic patterns and can detect anomalies, such as unexpected spikes in data transfers that might indicate a security breach.

Continuously monitoring network traffic allows you to identify and address threats in real time, significantly lowering the risk of prolonged damage or data loss.

Enforce access controls and adopt zero trust

Expanding your network often leads to an increase in the number of users and devices accessing your systems, which can heighten security risks. Implementing strict access controls is a necessary measure to limit who can reach sensitive areas of your network.

Multi-factor authentication (MFA) enhances security by requiring users to verify their identity through multiple forms of authentication before gaining access.

Adopting a zero-trust security model further strengthens protection by treating every access request with scrutiny, regardless of its origin. It operates on the principle that every access request is treated as though it originates from an open, untrusted network, requiring verification for each request to ensure comprehensive security.

Stay updated on emerging threats

Cybersecurity continues to evolve to meet new threats. It’s important to stay updated on these trends to maintain a secure network.

Engaging with cybersecurity communities, subscribing to threat intelligence feeds, and participating in industry events are effective ways to stay informed about the latest threats and best practices. Staying informed means you’ll be able to proactively adjust security measures to address new vulnerabilities and protect your network as it grows.

Regular updates to your security protocols and tools based on the latest intelligence help you stay ahead of potential threats, reducing the risk of breaches and ensuring your network remains resilient in the face of evolving challenges.

Maintain a detailed documentation process

Documentation is essential for efficient network management. It provides a resource for troubleshooting, planning, and maintaining consistency during staff turnover.

• Troubleshooting and issue resolution: When problems arise, detailed documentation allows for quicker diagnosis and fixes. Knowing the exact configuration of your network, including hardware, software, and interconnections, helps in identifying issues more efficiently and reducing downtime.
• Planning for upgrades: As your network grows, documentation becomes invaluable for understanding the current setup and planning upgrades that integrate well with existing systems. It enables you to scale your network intelligently, using a clear map of what’s already in place.
• Continuity during staff turnover: Well-maintained records allow new personnel to integrate seamlessly, preserving operational stability.
• Supporting scalability: Keeping your documentation up to date provides a clear blueprint of your existing network, which simplifies planning for future expansions as your needs evolve.

Common challenges in network capacity planning

One common issue is accurately predicting future traffic growth. Underestimating this can result in network congestion, where the infrastructure struggles to handle the increased load, leading to slowdowns and potential system outages.

Conversely, overestimating network capacity needs can lead to unnecessary costs. Over-provisioning or allocating more resources than required can be wasteful. Businesses might purchase excess hardware or services based on inflated projections, leading to underutilized resources and poor return on investment.

Real-world examples underscore the consequences of poor network capacity planning:

• For instance, an e-commerce platform that failed to anticipate traffic spikes during peak shopping seasons may experience downtime, leading to lost sales and damaged reputation.
• On the other hand, organizations that overestimate their needs might find themselves with idle servers and inflated costs that don’t translate into business value.

To navigate these challenges, a proactive approach to network management is key. Regular assessments of network performance and capacity are necessary.

You’ll not only need to review current capabilities but also anticipate future demands and adjust accordingly.

Predictive analytics tools can help by providing insights based on historical data and usage patterns, aiding in more informed decision-making.

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Next steps: Discover how Meter's NaaS solution can help

Meter’s Network as a Service (NaaS) solution aligns with best practices for network capacity planning, offering a fully managed service covering every aspect of network management—from design and installation to continuous maintenance.

By adopting Meter’s NaaS, your IT team can focus on high-impact projects, knowing that Meter proactively manages network performance, security, and scalability.

Meter’s NaaS offers features designed to support your capacity planning goals:

• Scalable infrastructure: Meter’s NaaS is built to grow with your business and adapt to increased network demands.
• Integrated hardware and software: Unified under one solution, Meter simplifies network management by minimizing coordination between multiple vendors and technologies. Our proprietary hardware includes switches, wireless access points, and an advanced security appliance.
• Real-time network monitoring: Through Meter’s patented dashboard, continuous monitoring provides insights into network performance with real-time analytics.
• Automated management: Meter’s automation features streamline configurations and adjustments, reducing manual workload for your IT team.
• Proactive maintenance and upgrades: Meter handles all routine updates and upgrades, keeping your network infrastructure resilient and up to date.
• Cost-effective management: Consolidating management under Meter’s NaaS reduces the cost and complexity associated with traditional, multi-vendor infrastructure.

Contact Meter today to find out more about how we can help you with your business network.