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I have heard of list view threshold as something good to be kept and it really saves the server. But I am not sure about how to use the concept named Happy Hour.

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up vote 2 down vote accepted

What list view threshold does is stop executing larger SQL queries on database. Simply it defines the maximum number of rows that a query can take part at a given instance of time. It can be any of the CRUD operations. This is generally 5000 for a normal user and 20000 for an administrator. (can be changed through Central Administration)

But there can be several scenarios you may want to run large queries. Can be for bulk operations by a normal user, a timer job, and etc... Happy hour is a session of time that allows running larger queries during that time. The threshold limit is not applicable here. Normally this is set for an off peak time of the server so the number of interactions will be lower though they are bulky.

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thank you for explaining – Parami Sachinthika Aug 29 '14 at 19:14
@ParamiSachinthika welcome to our site. "Thanks" here on SharePoint SE is expressed by upvoting. Also, if you deem an answer to be the solution of your problem, please mark it as accepted. – Andrey Markeev Aug 30 '14 at 0:10

Time of day when the query throttling is turned off for whole application is "Happy hour" . This is mainly used when there is need to schedule reports and admin jobs for an hour or more during non business hours when the large list/queries do not impact the end users .

Things to be kept in mind : Consider different time zones. This is especially important if your organization or customers are heavily geographically distributed. Setting it to 6pm may seem like a good idea for your own location, but would not be great in say, Sydney, Australia.

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Happy Hour is not really make server happy and also know as Daily Time Window for Large Queries.

As Malin, Already explain and you understand that running the Large Queries cause huge server performance issue. But in many scenarios you have to run the large queries, in oder to accomadte this.Msft provide an option in which you set a timing when use can run the large queries. Time should be off-peak hour when very minimum load on the servers.

Check this 4 min video, explain about "Daily Time Window for Large Queries".

SharePoint lists V: Techniques for managing large lists

To set the time check this guideline.

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