IT Asset Management: An Ultimate Guide

Organizations undergoing software audits might discover several unapproved applications are used across departments. As an IT manager, you might face the risk of non-compliance and overspending, exposing your organization to hefty fines and legal consequences. Thus, IT asset management provides a systematic approach to address this challenge.

IT asset management (ITAM) provides end-to-end tracking and management of IT assets. It ensures that every asset is properly used, maintained, upgraded, and disposed of at the end of its lifecycle.

In this post, we will discuss:

• What is IT asset management?
• Importance of IT asset management
• Different types of ITAM
• ITAM Process
• ISO standards for ITAM
• Best practices for ITAM

Let's get started.

What is IT Asset Management?

IT asset management can be defined as the process of managing the lifecycle of an organization's IT assets, such as hardware and software. It includes tasks such as inventory tracking, software license management, and lifecycle management of IT assets.

Consider a medium-sized company that relies heavily on various IT resources to conduct its operations. These resources include computers, servers, software licenses, and networking equipment. With proper IT Asset Management in place, the company can maintain an up-to-date inventory of all these assets, track their usage, and ensure compliance with software licensing agreements.

Moreover, ITAM gives you a holistic view of the organization while identifying the gaps, efficiencies, and inefficiencies of IT, HR, operations, project management, service-oriented functions, and cybersecurity.

Importance of IT Asset Management

IT asset management is a vital component of any business operation. Let's explore why.

• Cost Control: Effective IT asset management helps organizations avoid unnecessary expenses by identifying underutilized resources and reallocating them where needed. It also assists in optimizing software licenses to prevent overspending on unnecessary licenses.
• Risk Mitigation: By maintaining accurate records of IT assets and ensuring compliance with licensing agreements and regulatory requirements, IT asset management helps mitigate legal and security risks associated with non-compliance and unauthorized software usage.
• Enhanced Productivity: With a clear understanding of their IT asset inventory, organizations can streamline processes, minimize downtime, and improve overall productivity. IT asset management enables proactive maintenance and timely upgrades, reducing the likelihood of unexpected disruptions.
• Strategic Planning: By providing insights into IT asset usage patterns and lifecycle trends, IT asset management facilitates informed decision-making and long-term strategic planning. Organizations can allocate resources more effectively, prioritize investments, and align IT initiatives with business objectives.
• Improved Security: Proper management of IT assets ensures that security vulnerabilities are promptly addressed through patch management and software updates. IT Asset Management also helps track the location and status of devices, reducing the risk of data breaches and unauthorized access.
• Empowering ITSM Practices: IT asset management is vital for supporting ITSM processes, enabling your team to innovate and deliver value swiftly. Access to accurate data allows your team to anticipate the impact of changes, driving competitiveness.

Types of IT Asset Management

IT Asset Management is a critical activity that includes overseeing, managing, and optimizing company-owned IT systems, hardware, processes, and data.

1. Hardware Management: This includes the management of hardware like laptops, PCs, printers, copiers, and any other device used in data management. Hardware asset management also includes providing maintenance and repair, reducing system downtime, reboots, problem troubleshooting, and shutdowns.  
2. Software Management: Software must be carefully selected and maintained, as it has compliance issues and licensing requirements. Expired licenses and non-compliant software can cause hefty fines and lawsuits against a company if neglected.
   The software asset management tool helps you know when to renew licenses, upgrade tiers, uninstall obsolete software, safeguard the assets, and maintain business demand.
3. Cloud Asset Management: Cloud asset inventory has captured almost every nook and corner of a business. Unlike on-prem, cloud assets are easy to deploy, which means that any employee can procure a SaaS app in no time and start using it.
   Though the employee intends to increase their productivity, there will be plenty of applications with the same use case, or different departments procuring the same app, causing app duplication.
   It causes a wastage of resources and money and results in shadow IT too. ITAM practices can also secure your SaaS landscape by alerting you of malicious actors and eliminate wastage by constantly monitoring the applications. It alerts you on redundant and unused applications, which you can downsize and shape your SaaS stack.
4. Managing Mobile Devices and Digital Data: Whatever industry you are in, mobile devices play an important role in the field, unlike your so-called laptops or tablets.
   Employees tend to download all kinds of applications on their official mobile devices, which can threaten their critical information.
   Even the beneficial apps they download must be reviewed and approved to ensure they follow the norms of your IT policy.

Hardware Asset Management vs. Software Asset Management

Hardware asset management involves tracking, maintaining, and optimizing physical IT assets such as computers, servers, networking equipment, and peripherals. For instance, a hardware asset management system may monitor the lifecycle of computers within an organization, from procurement to retirement, ensuring efficient utilization and cost-effectiveness.

On the other hand, software asset management focuses on acquiring, deploying, and using software licenses and applications across an organization. This includes tracking software installations, license compliance, and usage patterns to optimize software expenditure and ensure regulatory compliance.

For example, a software asset management solution might monitor the number of licenses owned versus those in use, identifying instances of over-licensing or underutilization.

Moreover, this contrast extends to the management methods used; hardware asset management often involves barcode scanning or RFID tagging for physical asset tracking, whereas software asset management relies on software usage tracking tools and license management platforms.

IT Asset Management Process

The steps involved in an IT asset management process are mentioned below.

1. Asset Registration: The process starts with registering all IT assets within your organization's network. This includes computers, servers, software licenses, and other technology-related items. Each asset is given a unique identifier for easy tracking.

2. Checking Assets as a Whole: Once registered, your team can assess the entire inventory of assets. This involves reviewing each item's quantity, condition, and usage to ensure optimal performance and resource allocation.

3. Being Aware of the IT Assets Lifecycle: Understanding the lifecycle of IT assets is crucial. Each asset goes through stages from procurement to retirement, such as acquisition, deployment, maintenance, and disposal. You must monitor these stages to maximize the value of assets and minimize risks.

4. Location Tracking: The physical location of IT assets is essential, especially in large organizations with multiple offices or departments. Using tracking tools or software, managers can pinpoint where each asset is located at any given time.

5. Asset Maintenance Processes: Regular maintenance is key to keeping IT assets running smoothly. This includes software updates, hardware repairs, and system optimizations. You can prevent costly downtime and ensure optimal performance by implementing proactive maintenance processes.

6. Understanding the Necessity of an Asset: You need to evaluate the necessity of each asset within the organization. This involves assessing its functionality, relevance to business operations, and cost-effectiveness. Assets no longer essential may be retired or repurposed to optimize resource allocation.

7. Tracking of Warranties: Keeping track of warranties protects IT assets against defects or malfunctions. You need to monitor warranty expiration dates and take necessary actions, such as repairs or replacements before warranties expire.

8. Tracking of Licenses: Managing software licenses is crucial for compliance and cost control. IT managers must track the usage and expiration of software licenses to prevent unauthorized use and avoid penalties for non-compliance.

9. Measuring IT Costs: Finally, you need to measure the costs associated with IT assets. This includes initial purchase costs, maintenance expenses, and potential savings from asset optimization. By analyzing these costs, managers can make informed asset allocation and budgeting decisions.

ISO Standards for IT Asset Management

The International Standards Organization (ISO) has established an official set of standards for ITAM.

This ITAM process framework, ISO/IEC 19770, enables organizations to set requirements for establishing, implementing, maintaining, and improving IT assets.

This standard includes five significant parts and was recently updated in 2017.

A- ISO/IEC 19770-1: This framework outlines the best practices for ITAM and ensures that the company follows corporate governance requirements.

B- ISO/IEC 19770-2: This data standard deals with software identification. It allows organizations to identify software that is deployed on a given device.

C—ISO/IEC 19770-3: This is a data standard for detailing the entitlements and rights associated with software.

D- ISO/IEC 19770-4: While managing complex data center licenses and managing cloud-based software, this measurement standard gives standardized resource utilization reporting.

E-ISO/IEC 19770-5: This framework offers an overview of the ISO-defined ITAM standards and associated vocabulary.

Best Practices for IT Asset Management

ITAM can harness the power of trustworthy data to make strategic decisions that propel your IT department's success. These are the latest IT asset management best practices.

1: Establish Clear Policies and Procedures

Begin by developing comprehensive policies and procedures outlining the entire ITAM lifecycle, from procurement to disposal. These documents should define roles, responsibilities, asset categorization, tracking methods, and compliance standards. Clear guidelines ensure consistency and accountability across the organization.

2: Centralize Asset Inventory

Maintain a centralized repository or database containing detailed information about all IT assets, including hardware, software, licenses, and warranties. Regularly update this inventory to reflect changes such as acquisitions, retirements, or transfers. Centralization facilitates accurate tracking, reduces redundancy, and streamlines auditing processes.

3: Implement Robust Tracking Mechanisms

Utilize automated tools and technologies to track assets throughout their lifecycle. Barcode scanners, RFID tags, or asset management software can efficiently monitor asset movements, usage, and status changes. Real-time visibility enables proactive decision-making and minimizes the risk of unauthorized use or loss.

4: Conduct Regular Audits and Assessments

Schedule periodic audits to validate asset data accuracy, identify discrepancies, and assess compliance with policies and regulations. These ITAM best practices should encompass physical verification, record reconciliation, and asset utilization and performance evaluation. Regular assessments ensure alignment with business objectives and enable timely corrective actions.

5: Ensure Compliance and Risk Management

Adhere to regulatory requirements and industry standards governing IT asset management, such as ISO 19770 and ITIL frameworks. Implement robust security measures to safeguard sensitive data and mitigate cybersecurity threats associated with asset vulnerabilities. Regular risk assessments and compliance reviews mitigate legal, financial, and reputational risks.

6: Optimize Procurement and Vendor Management

Establish procurement processes that prioritize cost-effectiveness, quality, and vendor reliability. To optimize asset lifecycle costs, negotiate favorable contracts with vendors, including service level agreements (SLAs) and warranty terms. Maintain vendor relationships to stay informed about product updates, support services, and end-of-life considerations.

7: Foster Collaboration and Communication

Promote cross-functional collaboration between IT, finance, procurement, and other departments involved in asset management. Effective communication channels facilitate knowledge sharing, decision-making, and resolution of asset-related issues. Encourage stakeholder engagement through training programs, workshops, and regular updates on ITAM initiatives.

To effectively implement these best practices, you need to have suitable ITAM software in place.

What are IT Asset management tools?

IT asset management tools are solutions designed to streamline and automate the management of IT assets. They provide IT managers with a centralized platform to track and monitor various types of assets, from procurement to disposal. These tools offer functionalities such as inventory management, software license optimization, compliance tracking, and financial management.

Features to Look for in an Effective ITAM Software

Let's explore the features to look for while choosing an ITAM tool.

• Automated Discovery: Modern IT Asset Management (ITAM) solutions offer automated detection capabilities. They effortlessly scan an organization's network of computers to identify all hardware and software installations. This proactive approach ensures comprehensive visibility into the IT ecosystem without manual intervention, saving valuable time and resources.
• Efficient License Oversight: A robust ITAM system incorporates license management functionalities, storing and cross-referencing IT asset licenses with inventory data. This enables your organization to stay compliant with license agreements by flagging under-licensed situations that pose risks of breaches or identifying over-licensed scenarios where resources are underutilized or redundant.
• Version and Patch Control: Ensuring the security and performance of an organization's computer suite, ITAM software diligently monitors the deployment of new software patches and versions. Organizations can mitigate vulnerabilities, enhance system security, and maintain optimal operational efficiency by staying abreast of updates.
• Effortless Request Management with Streamlined Workflows: Some ITAM solutions offer request management features, enabling organizations to streamline asset acquisition and deployment processes. These systems facilitate customized asset request workflows and evaluate license requirements to ensure compliance. By automating request management, organizations enhance efficiency and resource allocation.
• Comprehensive Inventory Management: ITAM tools maintain detailed records of all assets utilized within an organization, including crucial information such as name, license agreement type, and version. This comprehensive inventory management ensures organizations have complete visibility into their asset landscape, facilitating informed decision-making and resource optimization.
• Centralized Configuration Management Database (CMDB): A cornerstone of effective ITAM solutions, the Configuration Management Database (CMDB) serves as a centralized location for storing vital information about an organization's IT assets and their interrelationships. This single source of truth empowers you with comprehensive insights, facilitating efficient asset management and strategic planning.
• Dedicated Fixed Asset Repository: Most ITAM tools feature a dedicated repository for managing fixed assets, primarily hardware. By centralizing fixed asset data, organizations can streamline asset management processes, optimize resource allocation, and efficiently utilize hardware resources.

Streamline your IT Asset Management with a Suitable Solution

Effective IT asset management is essential for maintaining control, compliance, and cost-effectiveness within your organization's technology infrastructure. With the multitude of solutions available in the market, choosing one that meets your needs and simplifies the management process is crucial.

Among the array of options, Zluri is one such solution. Zluri offers a comprehensive SaaS management platform tailored to meet the unique needs of your organization's SaaS landscape. With Zluri, you can discover, track, and manage your SaaS applications across the organization. This empowers you to gain better visibility, control, and governance over your SaaS ecosystem. This further improves productivity and cost savings.

However, choose the right solution to revolutionize your IT asset management approach and unlock the full potential of your organization's technology resources.