System Monitor is a Microsoft Windows utility that allows administrators to capture performance counters about hardware, operating systems, and applications. It uses a polling architecture to gather numeric statistics from counters exposed by components at user-defined intervals. The counters are organized in a three-level hierarchy of counter object, counter, and counter instance. System Monitor can be used to analyze hardware bottlenecks by monitoring queue lengths for processors, disks, and networks. It also helps optimize SQL Server performance by capturing events using SQL Server Profiler.