What Is IT Asset Management (ITAM)?

Organizations spend thousands of dollars every year to meet their technology requirements. A lot of these investments go into procuring IT assets and deploying them to perform various business functions. From setting up computers, routers, modems and more, to installing software applications, you need the right practices and tools to derive the maximum value out of these assets. This is where IT asset management (ITAM) comes in.

IT asset management ensures that a company’s technology resources are effectively utilized, optimized and accounted for, which in turn supports strategic decision-making and operational efficiency. In this blog post, we will discuss what IT asset management is and explain why it is important for IT professionals to prioritize it. We will discuss its benefits, components, types, lifecycle stages, ISO standards, best practices and much more. By the end, we’ll also explore how IT Glue can help you streamline and enhance your ITAM processes.

What is IT asset management?

IT asset management is a comprehensive approach to tracking and managing an organization’s IT assets. These assets include hardware, software and digital data, spanning everything from computers and servers to software licenses and cloud services. ITAM helps organizations optimize asset utilization, reduce maintenance costs, improve security, boost efficiency and ensure compliance with regulatory requirements.

Notably, one crucial aspect of IT asset management involves assessing how effectively your IT infrastructure meets your specific business requirements. The goal is to optimize the value generated by the IT equipment by continuously monitoring its status throughout its lifecycle.

How is IT asset management different from IT service management?

Despite having some similarities with IT service management (ITSM), IT asset management is quite different in terms of purpose and objectives. ITSM is an umbrella service that deals with a range of processes, including planning, delivering, supporting and maintaining various IT services. IT service management focuses on overall IT services rather than just assets. In that sense, ITAM can be considered a component of ITSM.

Why is IT asset management important?

Effective ITAM is essential for several reasons. Firstly, it ensures that all IT assets are accounted for and used efficiently, preventing wastage and redundancy. This optimization can lead to significant cost savings since organizations can avoid over-purchasing and underutilizing resources.

ITAM also enhances security by ensuring that all assets are up to date and compliant with security policies. Outdated or unmanaged assets can pose serious security risks, making it easier for cybercriminals to exploit vulnerabilities.

ITAM supports regulatory compliance as well by maintaining accurate records of IT assets and their usage. This is particularly important in industries with strict regulatory requirements, such as finance and healthcare, where non-compliance can result in heavy fines and reputational damage.

What are the benefits of IT asset management?

Effective IT asset management offers numerous advantages that can significantly impact an organization’s operations and bottom line. Let’s look at some of the benefits of ITAM and how they contribute to a more streamlined and secure IT infrastructure, ultimately supporting the organization’s overall success and growth.

• Better control of your IT environment: Effective ITAM provides complete visibility into your IT infrastructure, enabling better control and management of your assets. This comprehensive oversight helps prevent unauthorized use of assets and ensures that all technology resources are aligned with the organization’s goals and policies.
• Reduced IT costs: At its core, IT asset management streamlines resource allocation, leading to significant cost reductions. By optimizing the use of existing assets and avoiding unnecessary purchases, ITAM can significantly reduce IT expenses. Detailed tracking and analysis help identify opportunities for cost savings, such as consolidating licenses or negotiating better vendor contracts.
• Improved governance of IT assets: ITAM enhances governance by establishing clear policies and procedures for managing IT assets. This structured approach ensures that all assets are used appropriately and responsibly, reducing the risk of misuse or theft.
• Combat shadow IT concerns: Shadow IT refers to the use of unauthorized applications and devices within an organization. ITAM helps combat this by providing visibility into all assets and enforcing compliance with approved technologies, reducing security risks and ensuring data integrity.
• Increased operational efficiency: By automating asset tracking and management, ITAM streamlines processes and reduces the administrative burden on IT staff. This increased efficiency allows IT teams to focus on strategic initiatives rather than routine maintenance and troubleshooting.

What are the components of an IT asset management database?

An ITAM database should include three main types of data to support comprehensive asset management, which are:

Physical

This includes information about the hardware assets, such as desktops, laptops, servers and networking equipment. Details like make, model, serial number, location and status are recorded to facilitate tracking and management.

Financial

Financial data encompasses the cost, depreciation and total cost of ownership (TCO) of IT assets. This information helps in budgeting and financial planning, ensuring that asset purchases and replacements are cost-effective.

Contractual

Contractual data includes details about software licenses, service agreements, warranties and vendor contracts. Keeping this information up to date ensures compliance and helps manage renewals and negotiations effectively.

Types of IT asset management

Based on the types of assets managed, IT asset management can be primarily classified into the following four categories:

Hardware asset management

Hardware asset management focuses on the inventory of various hardware devices, including computers, printers, routers and modems. Efficient management of these assets ensures optimal performance, longevity and cost-effectiveness.

Software asset management

This process tracks and monitors software assets that are installed in various devices on the network. Software assets need to be constantly tracked and periodically reviewed to ensure they meet business requirements. Software asset management ensures compliance with licensing agreements, cost efficiency and optimal use of software resources, contributing to streamlined operations.

Mobile asset management

Mobile asset management addresses the unique challenges posed by smartphones, tablets and other mobile devices within an organization. It involves comprehensive tracking, security measures and optimization strategies specific to mobile technology. Effectively managing these assets enhances productivity and fosters a mobile-friendly work environment.

Cloud asset management

Cloud asset management involves overseeing virtual assets hosted in cloud infrastructures. This includes optimizing resource usage, ensuring cost-effectiveness and maintaining robust security measures within the dynamic and scalable environment of cloud computing. Effectively managing cloud assets is crucial for modern organizations embracing cloud technologies.

Stages of IT asset lifecycle management

The IT asset lifecycle is a framework for managing assets from acquisition to disposal. The stages include:

1. Plan: In the planning stage, organizations assess their IT needs and develop a strategy for acquiring and managing assets. This involves forecasting future requirements and budgeting for purchases.
2. Develop/acquire: This stage involves procuring the necessary assets. It includes selecting vendors, negotiating contracts, and purchasing or leasing hardware and software.
3. Integrate/deploy: During integration and deployment, assets are configured and deployed to end users or integrated into the existing IT infrastructure. This stage ensures that assets are ready for use and meet the organization’s requirements.
4. Maintain/improve: Maintenance involves regular updates, repairs and upgrades to ensure that assets remain functional and secure. Improvement focuses on optimizing asset performance and extending their useful life.
5. Retire: When assets reach the end of their useful life, they are retired and disposed of. This involves decommissioning, data wiping and environmentally responsible disposal or recycling.

ISO standards for ITAM

The International Standards Organization (ISO) has established various standards for IT asset management to ensure organizations’ needs are adequately met. Let’s examine some of these established standards.

• ISO/IEC 19770-1: This concerns the best practices of ITAM and provides organizations with a way of proving that they are performing IT asset management according to established standards.
• ISO/IEC 19770-2: This standard helps organizations identify the software deployed in a device.
• ISO/IEC 19770-3: This standard identifies the licenses, rights and entitlements associated with a piece of software.
• ISO/IEC 19770-4: This standard helps measure resource utilization in an organization.
• ISO/IEC 19770-5: This gives an overview of ITAM standards and associated vocabulary as defined under ISO.

ITAM best practices

Implementing best practices in IT asset management is crucial for ensuring that your IT assets are efficiently managed and utilized. Adopting these practices can lead to improved visibility, enhanced security and cost savings. Below are some essential ITAM best practices that every organization should follow.

Perform regular audits and tracking of IT assets

Regular audits are vital to maintaining accurate records of your IT assets. By routinely verifying the presence, condition and utilization of assets, you can ensure that all assets are accounted for and being used efficiently. Audits help in identifying discrepancies, unused or underutilized assets, and potential security risks. Tracking assets regularly also aids in timely maintenance and updates, preventing unexpected downtimes and ensuring compliance with internal policies and external regulations.

Maintain detailed records and reports

Keeping detailed records and reports of your IT assets is essential for effective asset management. This includes documenting asset specifications, purchase details, warranty information and maintenance history. Comprehensive records facilitate informed decision-making, enable efficient asset tracking and provide valuable data for financial analysis. Detailed reporting helps in forecasting future asset needs, budgeting and identifying opportunities for cost savings. Moreover, it ensures transparency and accountability within the organization.

Gather feedback from stakeholders

Engaging stakeholders in the ITAM process is crucial for aligning asset management strategies with organizational goals. Stakeholders, including IT staff, finance teams and end users, can provide valuable insights into the performance and utility of IT assets. Gathering feedback helps in understanding user needs, identifying pain points and making informed decisions about asset acquisition, deployment and retirement. Regular communication with stakeholders ensures that the ITAM process remains dynamic and responsive to changing requirements.

Utilize automation for ITAM processes

Automation is a game changer in IT asset management. By automating routine tasks such as asset tracking, inventory management and compliance reporting, organizations can significantly reduce manual effort and minimize errors. Automation tools can provide real-time visibility into asset status, streamline workflows and ensure timely updates and maintenance. Leveraging automation also frees up IT staff to focus on strategic initiatives, enhancing overall productivity and efficiency.

For a comprehensive guide on best practices in IT asset management, check out our Best Practices for IT Asset Management eBook.

What is IT asset management software?

IT asset management software automates the ITAM process, providing a centralized platform for tracking and managing IT assets. It offers features such as automated inventory tracking, compliance management and reporting, making it easier for organizations to manage their IT resources effectively.

What should you look for in an ITAM solution?

When selecting an ITAM solution, consider the following features:

• Automated inventory tracking: Automatically track and update asset information.
• Compliance management: Ensure assets comply with regulatory and vendor requirements.
• Reporting and analytics: Generate detailed reports and insights for better decision-making.
• Integration capabilities: Integrate with other IT systems for seamless operations.

How IT Glue helps you with IT asset management

As a leading cloud-based documentation platform, IT Glue can help you build a basis for hardware asset management and automate the entire process with our integrations and open API. You can then easily relate the hardware asset information to software applications, Active Directory, backup, email and many more with the IT Glue flexible asset templates. This allows you to consolidate your IT asset information into a single pane of glass, putting everything at your fingertips.

IT Glue’s SOC 2-compliant documentation platform features an immutable audit trail, multifactor authentication and next-generation password management engine, all of which are fully integrated and linked with all your documentation.

To know more about how IT Glue can help with IT asset management, get a demo now.