After capacity management techniques are implemented as per the service levels mentioned in the capacity plan, it becomes critical to constantly monitor the cloud environment. This chapter on cloud capacity management talks exclusively about the monitoring of cloud-based environments. Monitoring the cloud environment is the core of performance management. The monitoring data collected forms the basis of further capacity planning, so it is critical for any cloud service provider to monitor the cloud environment. This chapter also describes various monitoring entities and metrics that service providers must consider while doing performance management. Besides supporting capacity, monitoring data also provides meaningful information required by other service management processes like event management, incident management, and problem management.