Most company leaders have a pretty good sense of what their organizations spend on IT; it’s a budget line. But fewer have a good handle on exactly what assets they have, who uses them, and their true cost. It’s the job of IT asset management (ITAM) to close such knowledge gaps.
ITAM is all about tracking, managing, optimizing, and securing your organization’s technology stack. It kicks in with a procurement decision and follows an asset through to disposal. ITAM tracks hardware (laptops, servers), software (on-device, in the cloud), and the infrastructure that ties them together (routers, switches).
Distributed workforces, SaaS sprawl, regulatory requirements for documented controls, and constrained IT budgets all contribute to the ITAM challenge. Fortunately, a robust ITAM program can meet the challenge.
Why IT Asset Management Matters to Modern Businesses
Without a strong ITAM program, IT teams can’t keep tabs on what’s happening on their networks. Shadow IT, in which employees purchase outside assets such as software licenses or cloud services without IT’s blessing, degrades security. Finance departments struggle to justify and manage IT spending. Software licenses go unused with the meter running. And security vulnerabilities remain unpatched, waiting for hackers to exploit them. ITAM improves that picture thanks to centralized tracking and auditable records.
What Kinds of Assets Does ITAM Include?
Whether it’s hardware, software, or a cloud asset, ITAM tracks each asset’s cost, user or users, lifecycle, and compliance obligations.
Hardware Assets
Hardware assets include computers and mobile devices used by employees, on-site servers, and routers and other network gear. ITAM also tracks data such as each item’s location, maintenance history, and warranty coverage.
Software, SaaS, and Cloud Assets
Software and cloud assets come with their own critical data to track. ITAM keeps tabs on renewal dates for software-as-a-service (SaaS) subscriptions, usage metrics, and other critical information. Monitoring subscriptions and usage alone can be worth the price of admission for ITAM. It lets managers cancel what they don’t need.
How the IT Asset Management Lifecycle Works
Assets continually move through lifecycle phases, from acquisition to retirement. With ITAM, every step gets recorded for visibility and ongoing governance.
Procurement and Asset Acquisition
ITAM begins even before purchasing a device or license, with vendor evaluation and purchasing approvals. After purchase, assets get tagged and onboarded into a dedicated ITAM system.
Deployment and Configuration
After acquisition, IT pros provision and configure assets to their organization’s security and operational standards. Then they assign assets to users, with everything tracked in ITAM. Here, identity and access management also come into play, granting the right users access to the right assets.
Monitoring, Maintenance, and Optimization
After deployment, ITAM flags unused assets that could be retired. It helps systems stay secure by providing updates on vulnerabilities to patch. And ITAM-assisted planning helps teams optimize their budgets.
Retirement and Disposal
Every good thing comes to an end, and that includes IT assets. Asset retirement means securely wiping data from devices before recycling or resale. In the software realm, licenses tracked with ITAM can be terminated without risking overruns or cutting off forgotten users. ITAM systems also provide audit trails for tracked assets, from acquisition to disposal, for regulators and other interested parties.
Core Components of an Effective ITAM Program
These key elements keep ITAM programs sustainable and scalable.
Centralized Asset Inventory
A centralized repository captures every asset, its users, lifecycle stage, and cost, among other attributes. It represents a single source of truth for ITAM data. To populate it, asset discovery tools scan and catalog devices and software on company networks. Data normalization also ensures that information collected from disparate sources arrives in standardized, easy-to-retrieve formats.
Asset Governance and Policies
Effective policies inform decisions about what to purchase, how to approve purchases, who can use what, and when to retire an asset. Policies also define parties responsible for each asset and usage parameters. In addition to all of the above, governance also takes into account regulatory and contractual compliance requirements.
Automation and Reporting
Automation goes hand in hand with reporting in mature ITAM programs. Automated tools keep asset inventory and associated attributes current without manual intervention. Pulling all the information together, reporting dashboards give IT leaders and finance teams the visibility they need to make informed decisions. Audit reporting also streamlines compliance reviews.
The Business Benefits of IT Asset Management
If you don’t know what you have, you can’t keep track of what it’s costing you. Nor can you see where technology can help you reduce overall costs or effectively plan for upgrades. ITAM gives leaders the visibility they need to get the most out of their technology investments.
Better Cost Control and Budget Forecasting
Unused software licenses, over-provisioned cloud resources, and redundant hardware purchases all add up. And all are among the risks that an effective ITAM program can mitigate. Flexera found that 91% of IT professionals save money on software purchases using ITAM.
Improved Security and Compliance
ITAM provides the visibility that threat and vulnerability management need. Information about devices active on the network, software running on them, and patch status all go into the mix. ITAM also provides cloud security benefits for teams working across distributed environments. And for organizations subject to regulatory requirements, ITAM provides the documented controls and audit trails examiners expect.
Increased Operational Efficiency
ITAM makes just about every organizational function run more smoothly. New employees can get right to work with well-defined (and automated) processes for provisioning devices. Support teams resolve issues faster with easy access to up-to-date asset data. And asset visibility across IT, HR, and finance teams reduces interdepartmental friction.
Greater Visibility and Accountability
ITAM creates accountability, thanks to clear records on who is responsible for what asset at each stage of its lifecycle. For organizations managing remote workers, ITAM keeps IT managers in the loop on devices outside the office.
ITAM vs. ITSM vs. CMDB vs. SAM
The alphabet soup of ITAM-related terms can get confusing, but it’s easy to sort out. Let’s start with the difference between ITAM and ITSM.
ITAM vs ITSM
Again, ITAM means managing the lifecycle, cost, and governance of IT assets, including hardware and software. In contrast, IT service management (ITSM) means delivering and managing IT services. That can include help desk services and cybersecurity incident response, for example.
The two practices go together and are typically integrated at mature organizations. For example, ITSM services benefit from accurate ITAM data. And changes made through ITSM, for example, to system configurations, often trigger ITAM updates to keep data current.
ITAM vs SAM
Software asset management (SAM) is a part of ITAM. Under its purview are the details of software licenses, subscription costs and durations, usage, compliance, and other related data. Organizations that rely significantly on software may run SAM as a dedicated function within ITAM.
ITAM vs CMDB
A configuration management database (CMDB) stores information about IT assets and how they relate to one another. A CMDB is an enabling tool for ITAM. While an ITAM program may use a CMDB to store data, a CMDB doesn’t constitute a full ITAM program. ITAM needs clear processes and governance to use that database effectively.
IT Asset Management Best Practices
Start with these fundamentals to build or improve an ITAM program.
Standardize Asset Procurement and Tracking
Standardized hardware and software reporting processes simplify and streamline every other aspect of lifecycle management. The benefits start even before acquisition, with the procurement process. For example, registering assets for ITAM during procurement helps you maximize warranty coverage.
Automate Asset Discovery Where Possible
Automated discovery tools make ITAM at scale possible. Such tools continuously scan your networks and cloud resources to add assets to the inventory. Automated discovery also captures configuration details and flags discrepancies between inventory entries and real-world assets.
Maintain Accurate Lifecycle Records
Asset records are only as good as their last update. Out-of-date records may be little better than an asset that isn’t inventoried at all. Automation can help keep lifecycle records up to date, tracking configuration changes, new user assignments, end-of-life dates, and more.
Align ITAM With Security and Compliance Initiatives
Flexera cites audit compliance as the number one tracked metric for measuring SAM success (51% of survey respondents). That’s only slightly ahead of software savings (50%). Reducing application vulnerabilities is also in the top ten of concerns. That’s because ITAM data is security data. It includes patch status, device configuration, network presence, and other factors impacting cybersecurity. Successful ITAM programs work in tandem with security and compliance initiatives.
Regularly Audit and Review Asset Data
Regular audits keep asset inventories from drifting too far from reality. Organizations may conduct them annually, quarterly, or even monthly. You should also run an audit after a major event such as an office move or a system upgrade. Among other data to correct, look for ghost assets that have been retired, but that still appear in records. Also, look for signs of shadow IT that may have cropped up between reviews.
Common Challenges Organizations Face With ITAM
Poor data quality and siloed systems represent two of the biggest challenges to effective ITAM programs. ITAM depends on good data. And shadow IT, undocumented SaaS sprawl, remote and hybrid work, and piecemeal, manual updates all hinder accurate updates. A related issue, siloed systems, keeps individual teams from getting a picture of the whole tech stack, further complicating updates.
Automation, centralization, cross-functional governance, and continuous improvement cycles are antidotes to both common ITAM challenges.
For example, a small organization with a handful of devices might get away with tracking assets on spreadsheets. But even then, manually keeping up with SaaS plans, warranties, and other details can easily fall by the wayside.
The limitations of manual tracking only grow more apparent as a company grows. As just one complication, compliance and security risks multiply as the number of devices, licenses, and locations increases. In such cases, purpose-built ITAM software can save the day.
If you lack the internal resources to build and staff ITAM capabilities internally, consider working with a managed IT provider. The benefits of managed IT here include access to established processes, tooling, and expertise without the overhead of in-house resources.
Frequently Asked Questions About ITAM
What does ITAM stand for?
ITAM stands for IT asset management. It is the practice of tracking, governing, and optimizing an organization’s technology assets, from procurement to retirement and replacement.
What is the difference between IT asset management and inventory management?
Inventory management is a part of ITAM. ITAM takes in the big picture of assets, including lifecycle governance, licensing details, security red flags, and other attributes. Inventory management mainly concerns itself with what assets are and where they reside.
What are the main goals of IT asset management?
ITAM helps organizations maximize the value of their IT investments. It helps them reduce unnecessary spending, enhances security and compliance, and aids planning for upgrades.
What departments are typically involved in ITAM?
IT is the primary owner of ITAM. But ITAM also benefits from collaboration with finance (for cost tracking), HR (for on- and offboarding), and legal (for compliance).
Can small and mid-sized businesses benefit from ITAM?
Absolutely. The risks of wasted money, security gaps, compliance exposure, and operational inefficiency remain for organizations of all sizes. And many SMBs find that even basic ITAM practices can surface meaningful cost savings and security improvements.
What are common ITAM metrics and KPIs?
Common ITAM metrics include the total number of assets under management and software usage rates. The percentage of assets under warranty and the average total cost of asset ownership are also useful metrics.
How does ITAM support cybersecurity and compliance efforts?
Cybersecurity and regulatory compliance depend on knowing what assets you have, who uses them, and their patch status. ITAM provides a single source of truth for all of this information.
Final Thoughts: Building a More Effective ITAM Strategy
IT asset management requires an ongoing commitment. It’s never a one-and-done exercise, and there’s always room for improvement. But effective ITAM will deliver outside benefits that compound over time with every improved purchasing decision and successful audit.
Automate asset data updates to keep current. Integrate your ITAM data with security, compliance, and financial processes to avoid data silos. And review and improve your ITAM program regularly to stay on top of emerging security and audit risks.
To get started, assess what you already know about the technology under your purview. Do you know exactly how many devices live on your networks? What and how many software licenses does your organization currently use? When is your next major hardware refresh due? Then, get to work filling in the gaps.
Xantrion works with businesses across the San Francisco Bay Area, San Jose and Silicon Valley, LA, Sacramento, and San Diego to build more disciplined, visible, and secure IT environments. Talk to us to learn more about the types of IT services that support effective ITAM.
