Why is IT asset management important? 8 benefits you need to know

  • IT asset management (ITAM) optimises IT resources, minimises costs, and enhances efficiency through comprehensive asset tracking and management.
  • ITAM covers physical hardware, software, and cloud resources, ensuring efficient utilisation and lifecycle management.
  • Benefits of ITAM include improved performance, increased security, cost reduction, and better asset visibility, aiding informed decision-making through data-driven analytics and essential reports.

IT asset management (ITAM) ensures that each asset is properly used, maintained, upgraded, and disposed of throughout its entire lifecycle. Efficient IT asset management can help organisations centralise and streamline asset tracking, optimise asset utilisation, ensure software license compliance, and improve asset-related decision-making. This blog primarily introduces IT asset management and its importance.

Introduction to IT asset management

IT asset management is a methodical approach that oversees all elements of an enterprise’s IT framework. Adhering to this process enables businesses to leverage their IT resources optimally, adhere to licensing agreements, minimise unnecessary costs, and enhance employee efficiency.

This encompasses monitoring hardware, software, and other technological assets, ensuring their pivotal contribution to the company’s success. Items like servers, computers, and software licenses have limited lifespans, necessitating proactive measures to maximise their value throughout their usage period.

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How does an IT asset management process work?

The ITAM process typically encompasses the following stages:

1. Asset identification

The initial phase involves creating a comprehensive inventory of all IT assets. This step facilitates easy recognition and ensures redundant assets are optimised for increased efficiency.

2. Tracking

Utilising an ITAM tool or system is crucial for ongoing monitoring of IT assets. Information gathered for tracking each asset includes financial aspects (asset costs), contractual details (warranties, licenses, and service-level agreements (SLAs)), and inventory data (location and physical condition of assets).

3. Maintenance

IT assets undergo maintenance based on their lifecycle stage. Maintenance activities encompass asset repair, upgrades, and replacements. All maintenance tasks performed on an IT asset are documented within the ITAM process, enabling data analysis to evaluate asset performance.

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Types of IT asset management

IT assets typically fall into several categories: physical, software, hardware, mobile, and cloud. ITAM is crucial for the successful deployment and ongoing support of these assets, aligning with their diverse types. The three primary types of IT asset management are as follows:

1. Software

This category of ITAM is notably intricate, involving aspects such as compliance requirements, licensing, shadow IT, and IoT management. Continuous monitoring and review are essential for software assets, ensuring they remain compliant, adaptable to market changes, and capable of meeting evolving demands.

2. Hardware

Physical hardware constitutes a vital part of an organisation’s IT ecosystem. These assets encompass PCs, printers, copiers, laptops, mobile devices, servers, and other hardware used for data management purposes within the company. Effective ITAM includes tracking and optimising the usage of these hardware assets.

3. Cloud

ITAM extends to the management of cloud resources, encompassing Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). Tracking the cost, usage, and compliance of these cloud-based assets is crucial for efficient IT asset management.


Benefits of IT asset management

1. Improved performance

ITAM helps organisations enhance their overall performance by ensuring optimal utilisation and efficiency of their IT assets. By meticulously tracking the lifecycle of IT assets, organisations can pinpoint assets that are no longer productive and replace them with newer, more efficient solutions. Additionally, ITAM aids in identifying and resolving software conflicts, enhancing system reliability, and minimising downtime.

2. Increased security

ITAM contributes to bolstering an organisation’s security by ensuring comprehensive tracking and management of all IT assets. Through maintaining an accurate inventory of IT assets, organisations can proactively identify potential security risks and vulnerabilities, taking pre-emptive measures to mitigate these issues before they escalate into major security threats.

3. Reduced costs

ITAM plays a crucial role in reducing IT costs for organisations by optimising the usage of IT assets and avoiding unnecessary expenses. Through diligent lifecycle tracking, organisations can identify underutilised or obsolete assets and dispose of them appropriately. This proactive approach helps in cutting down maintenance and support expenses, eliminating the need for extra software licenses and hardware.

4. Asset visibility

ITAM provides organisations with enhanced visibility into their IT assets, enabling more effective tracking and management. This visibility is pivotal as it allows organisations to have a clear understanding of what assets they possess, their locations, and their usage patterns. Armed with this knowledge, organisations can make informed decisions regarding their IT investments and ensure that assets are maximally utilised.

5. Improved budgeting

With better visibility into IT assets, ITAM facilitates more accurate budgeting for organisations. It helps in understanding the total cost of ownership of IT assets and how these costs are distributed across various departments and locations. This insight proves invaluable in budget allocation, enabling organisations to allocate resources efficiently and make informed decisions about asset replacement or upgrades.

6. Automation

ITAM streamlines numerous manual processes involved in asset management through automation. ITAM software automates tasks like asset discovery, inventorying, tracking ownership and location changes, and generating performance reports. This automation not only saves time and reduces errors but also empowers organisations with real-time data for making well-informed decisions about their IT assets.

7. Analytics

Gathering, analysing, and interpreting data is crucial for gaining insights and making informed decisions. ITAM software allows organisations to collect diverse data on their IT assets, including hardware and software inventory, license details, and usage statistics. This data can then be analysed to identify trends, patterns, and potential issues such as asset underutilisation, license compliance issues, and security vulnerabilities.

8. Reporting

ITAM software generates various reports, including inventory, compliance, usage, and cost reports. These reports empower IT and procurement managers to make informed decisions about asset management, budgeting, and resource allocation, enhancing overall operational efficiency.


Crystal Feng

Crystal Feng is an intern news reporter at Blue Tech Wave dedicated in tech trends. She is studying Chinese-English translation at Beijing International Studies University. Send tips to c.feng@btw.media.

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