IT asset management is also known as IT inventory management. It often involves collecting detail information about hardware and software inventories, which is then use to make decisions about purchases and inventory. Use of the assets asset management also enables organizations to lower the risks associated with the costs of inadvertently building new IT projects on outdated (or unknown) foundations.

What is the Importance of Asset Management for IT?

Importance of Asset Management

IT organizations manage a significant part of the company’s total assets. IT teams efficiently use organizational resources to support user needs and business functions.  Assets are expensive both to buy and to maintain. As a result, asset management plays a critical role in helping.

Here are some of the fundamental goals of IT asset management:

  • Ensure compliance with business security policies and directing requirements.
  • Improve productivity by implementing technologies to support users and business needs.
  • Reduce license and support costs by eliminating or relocating underutilized resources and licenses.
  • Limit the overhead of managing the IT environment.

Types of IT Asset Management

Asset management is a broad term that can have many meanings. Here are the most common types of asset management found in IT organizations.

IT Asset Management

The global set of business practices brings together the financial, contractual and inventory functions to support the management and strategic decision-making of the life cycle in the IT environment. ITAM is part of a company’s IT service management functions.

Digital Asset Management

It is part of the company’s intellectual property management functions. It is the electronic media management figure responsible for managing digital assets, such as photos, videos and digital data that the company produces or for which it licenses third parties.

Software Asset Management and License Management

They are responsible for the effective management, control and protection of software assets. This includes those produced by the company and those license to third parties to ensure that all software used in organizations has been paid for and is by license agreements.

What Would Be Some Examples of IT Assets?

The information needs to support decisions making. With the ever-increasing complexity and diversity of IT environments as technology advances and more third-party offerings appear, defining what an IT asset is difficult. Many companies have started to move away from strict definitions and instead opt for purposes of IT support that varies from organization to organization, depending on the nature of the business, the role things play within the IT ecosystem.

Infrastructure Hardware

Your company has bought and operates network devices, data centers, physical servers, etc.

Facility and Infrastructure Lease Agreements

Infrastructures provided by third parties are not consider part of your company’s assets. Agreements governing access to and use of third party infrastructure may be consider assets.

In-House Developed Software

Things that your IT team has written or built in-house that are own by your company.

Software Licenses

Also known as commercial software packages (or COTS, for Common Off the Shelf Software), these are things that someone else has created and for which you have purchased a license to use for a specific time. Please note that the asset is the license, not the software.

Company-Owned End-User Devices

Desktop computers, monitors, copiers, phones, and also, other end-user devices have usually been considered IT assets. Please note that devices owned by employees are not company assets. It is essential as the concept of “Bring Your Device” (BYOD) has become very common.

Digital Operations Data

Increasingly, data is treat as IT assets, having value, cost, management and maintenance during its life cycle. Operational data is vital for digital businesses

What is the Life Series of an IT Asset?

Assets are those things that have a finite useful life. To maximize the value generated for the company, asset management processes use the asset life cycle concept to structure activities and also, support decision making. As explained above, each type of asset management function within a given organization may have its definition of life cycle stages and also, the information that they care about.

In the context of IT asset management, the structure of an asset’s life cycle typically takes this form:

Planning

The strategy and decisions about what assets are need within the organization, how to obtain them, how they will be use and also, how they will be finance. Planning typically includes TCO and cost/benefit analyzes of alternatives.

Acquisition

The procurement of assets through their construction, purchase, lease or obtaining licenses.

Assignment

Introduction of the asset into the IT ecosystem includes installation, integration with other components, the establishment of operation/support processes, and also, provision of access to users.

Maintenance

As assets are operated and use, maintenance, repair, upgrades and also, retrofits may be require to maximize value to use, extend asset life, mitigate risk and reduce support costs.

Retirement

At the end of the asset’s useful life, it must be dispose of or otherwise disposed of. Retirement typically includes transitioning users to other resources, updating asset records, cancelling support agreements, completing license renewals, and also, beginning spare asset planning.

Conclusion

IT Asset Management (ITAM) is a set of business practices that support the management lifecycle to inform strategic decision making. ITAM can be found in any IT service company these days. It is generally seen as the axis between money and conformity and innovation and improvement.