suggest me the proper way to update the mentioned spectrum version to its latest version.
To upgrade to the latest Spectrum 10, you need to upgrade to 9.2.2 (also known as H08) or any 9.2.3 hotfix and above firstly, and then you can install 9.4.0 , then install 10.0.
Ensure that it is mandate that you would need to have Windows 2008 - minimum.
Windows 2003 is not supported from Spectrum 9.4
what else is needed i terms of system requirement like ram and hard disk ?
Have a look at this link to upgrade to Spectrum 10.0
CA Spectrum - CA Spectrum - 10.0 - CA Wiki
please have a look to the CA Spectrum Installation Guides - which will cover most of your questions already. Also I would encourage you to test your upgrade procedure by a new test-install / lab-environment. You can do so by using the CA Spectrum Online-Backup files - to then install i.e. a new CA Spectrum R9.3 installation. For this check the manuals explaining:
Chapter 1 - System Requirements
Chapter 2 - Prerequisites
Chapter 3 - Upgrading CA Spectrum -- here check for dbsavefile.SSdb and the procedure
Ahead of this - you need to know your current installation infrastructure (like - having a distributed Spectrum installation / having customization like Event-, Alarm-customizations / having imported additional MIB and mapped/created custom attributes and watches). Finally - the upgrade affects the Java Runtime Environment at workstation level too and the workstations java install requires update too.
I would suggest to engage CA Services in case of upgrade for a big production, distrubuted and customized CA Spectrum installation. Also you may find additional education sessions for this.
But - as said - first I would like to point to the CA Spectrum Installation Guide .. this truly covers most of all aspects.
Kind regards, Joerg