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I heard a story recently about a company that is porting their main business application to a new platform. This new platform is not very horizontally scalable (unlike some others we know). As a matter of fact, if the application is not written to take advantage of multiple networked machines (as opposed to clustered machines) the limiting factor becomes "what's the largest machine I can purchase to run the app?"

Little birdies tell me that the technical team have been informing management that the machine that they have (which is the largest machine available in this computer range) is being totally overwhelmed by about one tenth of the total projected user load. Management's response? "No it isn't".

Is that a setup for failure, or what?