The digital cloud environment now conducts ongoing dynamic capacity planning instead of the former periodic spreadsheet-based system. Modern businesses face unprecedented complexity when they try to handle operations spread across multiple cloud and hybrid cloud platforms. Modern organizations need smarter data-based capacity planning and management approaches because they must deal with variable traffic patterns as well as changing user requirements and cost optimization demands. The transformation requires observability technology to use automation systems with predictive analytics to develop capacity plans that adjust to present operational conditions.