Primary Concern: Lack of Business Input in IT Capacity Management

C.

As an IS auditor, the primary concern in this situation would be the potential impact on business operations and strategic planning. The fact that capacity management is being performed solely by IT with no input from the business could lead to a lack of alignment between the IT infrastructure and the needs and goals of the organization.

Therefore, the auditor's primary concern would be option A, the unanticipated increase in business's capacity needs. Without input from the business, IT may not have an accurate understanding of the organization's future growth and capacity needs, leading to potential capacity constraints and system downtime. This could have significant negative impacts on the organization's operations and ability to meet customer demands.

Option B, impact to future business project funding, could also be a concern, as poor capacity management could lead to increased project costs or delayed timelines. However, this is a secondary concern, as the primary focus should be on ensuring that the IT infrastructure is aligned with the business's needs.

Option C, failure to maximize the use of equipment, is also a concern, but this is more of an operational efficiency issue rather than a strategic concern. While it is important to maximize the use of equipment to reduce costs, the primary concern should be on ensuring that the organization's IT infrastructure is aligned with its strategic goals.

Option D, the cost of excessive data center storage capacity, is a concern but is not the primary focus in this situation. While excessive storage capacity can be expensive, it is important to ensure that the organization has enough capacity to meet its current and future needs. The primary concern should be on ensuring that the IT infrastructure is aligned with the organization's strategic goals and that capacity management is being performed in a manner that supports these goals.