CPU Utilization is a metric that shows the percentage of time the CPU is busy processing instructions. It's a key indicator of how much work the CPU is doing and can help identify performance issues. For example, if a server's CPU utilization is consistently at 95%, it may indicate that the server is overloaded and struggling to keep up with the workload.
Let's consider a web server application. By monitoring CPU utilization, you can identify if the server has enough processing power to handle incoming requests. If CPU utilization is consistently high during peak traffic times, it may be necessary to scale up the server or optimize the application code to reduce the CPU load.