How to Build a Collaborative ITAM Strategy for Smarter Procurement

Organizations are investing more in enterprise software than ever before. In fact, according to the Gartner Market Databook, 4Q24, global software spend for businesses is expected to reach $1.2 trillion by the end of this year.

While market growth is encouraging, questions remain as to whether companies are both aware of the scale of their IT assets and are realizing their full value.

Procurement and IT Asset Management are the key business departments often responsible for the purchasing and management of software. However, the ready availability of SaaS based tools, and the temptation of numerous “free” software offers, means that technically anyone within the business can be the procurers of software. With each department and individual operating in isolation, with little consideration of organizational needs, IT assets can escalate quickly. Without the proper management, it can create a myriad of problems.

The Cost of Disconnected ITAM
This siloed approach to ITAM may be unknowingly exposing companies to financial, compliance, security, and operational risks. The main challenges seem to arise from five key areas:

1. Cloud vs On-Premises: More widely within procurement teams, there are ongoing dilemmas over whether to start embracing cloud-based models for the advertized cost benefits, or continue to sweat assets on-premises. This mixed model approach brings additional layers of complexities, and organizations need to ensure that they have a handle on what cloud assets they have, and in which environment, to ensure they are compliant.
2. Licensing Complexity: From traditional software to cloud based licensing, the complexity surrounding licensing models only increases as organizations invest in more assets. If organizations don’t have a firm handle on their consumption of licenses, they can fall foul of requirements – facing significant unplanned expenses, including buying additional licenses, penalties and audit charges, from publishers for over-consumption and potentially opening themselves up to security risks.3. Budget Pressures: While global software consumption has continued to rise, organizations are under increasing pressure to justify IT spend. This is harder to do when teams don’t have insight into what is being spent and where.
3. Shadow IT: The ease by which individuals can procure SaaS based models or free tools, without involving the IT department, means that organizations are unknowingly opening themselves up to more risk.
4. Lack of Formal Strategy: With departments operating in siloes, organizations don’t have a comprehensive handle on their IT assets. This is made even harder as many also don’t have a central IT Asset Management tool to manage their publishers and licences.Aligning ITAM and Procurement For Better Results

Aligning ITAM and Procurement For Better Results

For organizations seeking better control over their IT estate, what’s needed is to break down the siloes and start bringing together teams under one unified strategy. The key to this will be integrating two departments, the procurement and IT Asset Management teams.  By implementing a comprehensive ITAM tool and establishing agreed upon controls, organizations can simplify compliance management and gain greater control over their software assets.

Our advice to organizations building a unified team is to focus on three foundational practices:

1. Aligned KPIs

   Make sure everyone is tracking the same key performance indicators (KPIs), whether it’s cost, uptime, or vendor Service Level Agreements (SLAs). Don’t overlook how crucial this alignment is: for instance, an IT user trying to fix unexpected downtime might replicate a server, accidentally triggering a new license purchase. When KPIs are aligned, transparency improves and communication between stakeholders becomes far more effective.

2. Common Objectives

   No ITAM tool is flawless, there will always be blind spots when tracking deployments and usage, especially with certain software publishers. By working closely with ITAM experts, procurement teams can quickly understand the issues and concentrate on software publishers and applications that can be reliably tracked in their environment. This boosts governance and supports better cost control.

3. Cross-Functional Collaboration

   Perhaps most importantly, ITAM and procurement teams need to be in continuous, open dialogue. This isn’t just about having the right tools – it’s about building a culture of trust, flexibility, and shared goals. Success depends on a collaborative mindset. That’s where Anglepoint comes in: helping to unite stakeholders, foster knowledge sharing, and align everyone behind common objectives.

The Benefits of an Integrated Approach to ITAM

It goes without saying, but by integrating teams and collaborating across departments, organizations can thrive. Here are some of the benefits that our clients have experienced from adopting a comprehensive ITAM strategy across their organization:

• Informed, Data-driven decisions

  Instead of relying on outdated reports or gut instinct, procurement teams can tap into ITAM insights to see exactly what assets the organization owns, how they’re used, and when they’ll reach end of life. This visibility helps ensure teams invest in the technology people truly need to stay productive.

  ITAM data on software license usage and compliance also empowers procurement to fine-tune licensing agreements and spend more wisely. And by uncovering shadow IT, ITAM helps eliminate waste, align purchases with real user needs, and strengthen compliance.

• Effective lifecycle management

  Managing an IT asset’s lifecycle is more complex than ever, especially when it comes to licensing. Vendor mergers and acquisitions, for example, can change pricing structures or licensing terms overnight. Cloud and on-premises models also have different requirements and increasingly complex structures. ITAM provides the clarity needed to stay on top of these shifts and keep assets optimized from purchase to retirement.

• Improved forecasting and budgeting

  ITAM data gives procurement teams a clearer picture of asset costs, usage trends, and refresh cycles – making it easier to anticipate future needs. This turns procurement into a more strategic, proactive function, aligning forecasts with real asset lifecycles to deliver better value and outcomes.

Finding The Right Balance

Ultimately, the real challenge for ITAM and procurement teams is finding the right balance between cost savings, risk management, and end-user satisfaction. It’s rarely straightforward – too many governance controls can frustrate users and hinder productivity, while too few can lead to under-utilization and unchecked IT sprawl.

The key is tackling these challenges together. By combining the insights, expertise, and data of both procurement and ITAM, organizations can strike that balance more effectively. The tools are available, the cultural shift is achievable, and experienced partners like Anglepoint are ready to share proven strategies and deep industry knowledge to help teams succeed.