Hobby of hard-core Geeks, and job of System administrators, performance tuning is the art of configuring system resources to achieve optimal usage. The actual specifics of performance tuning vary widely depending on the specific type and use of the computer in question. However general areas usually touched upon are:

Kernel Configuration
Monitoring System Activity
Workload Management
Memory Performance
Disk Performance
Network Performance
Terminal Performance

Some hard-core geeks will fiddle with one aspect of another, sometimes spending hours just to achieve a rather miniscule boost in their system's performance. Others will be satisfied with shuffling job priorities and run times so system intensive processes are moved to times of minimal activity. Some people drop performance tuning all together and just buy more hardware.

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