What is IT Asset Management (ITAM)?

IT Asset Management (ITAM) is the practice of overseeing and optimizing your IT assets throughout their entire lifecycle. Effective ITAM ensures that every asset – whether tangible (hardware) or intangible (software) – is monitored and used correctly, is appropriately maintained and upgraded, and eventually, is disposed of at the end of its lifecycle.  

In simpler terms, ITAM helps your organization to: know what IT assets you have; use those assets efficiently; avoid unnecessary costs, and maintain security and compliance.  

To ensure you derive maximum value from the assets within your IT estate it is essential to proactively manage the IT asset lifecycle throughout every stage:  

However, without a structured ITAM strategy, organizations risk inefficiencies, security vulnerabilities, and compliance issues. 

Types of IT Asset Management 

There are three main types of IT Asset Management for your organization to consider: 

• Hardware Asset Management (HAM):
  This focuses on the physical IT assets (tangible assets) within your organization (e.g. computers, servers, networking equipment etc.). 
  

• Software Asset Management (SAM): 
  This deals with the management of software licenses and applications (intangible assets). It ensures compliance with software licensing agreements, optimizes software spending, and tracks software usage. It’s crucial for avoiding legal issues and unnecessary costs.    

• Cloud Asset Management (CAM): 
  This involves tracking and managing cloud-based resources, such as SaaS (Software as a Service), IaaS (Infrastructure as a Service), and PaaS (Platform as a Service). It helps organizations control cloud costs and ensure compliance with cloud service agreements. 

All of these are key components of ITAM and play a vital role in the effective management of an organization’s IT assets. While each are distinct, they do have a bearing on each other. For example, if your hardware inventory is inaccurate, your software license management will also be flawed, as it relies on data provided by your hardware. It’s therefore important to have a solid strategy across the full spectrum of ITAM to be entirely effective.

Key ISO Standards for ITAM
There are numerous guidelines when it comes to ITAM and it’s critical that any strategy adheres to these. Some key standards include: 

• ISO/IEC 19770-1: Integrates the people, processes and technologies necessary to manage each and every stage of the IT asset lifecycle. A principal driver of this standard is to forge a performance-related link between ITAM strategy and operations, so that any adopter of the Standard can react in near-real time to state changes that could adversely impact IT operations. 

• ISO/IEC 19770-2: Relates to a core SAM process – the process of building and maintaining an accurate and complete inventory of all software products deployed on all of the devices under an organizations or individual’s operational control. 

• ISO/IEC 19770-3: Details the entitlements associated with a piece of software including the use rights, limitations, metrics and method for measuring consumption. 

• ISO/IEC 19770-4: Allows for standardized reporting of resource use. This is particularly important when managing more-complex licenses and cloud-based software and hardware. 

• ISO/IEC 19770-5 A brief description of the foundation principles and approaches on which ITAM and SAM is based. 

Four Good Reasons Why IT Asset Management is so Important  

As we already know what the risks are when organizations do not exercise ITAM practices, let’s explore four compelling reasons why well thought-out IT Asset Management is essential. 

1. ITAM Improves Utilization and Ensures Cost-Efficiency:
   Maintaining a systematic ITAM framework helps to maintain an overview of all IT assets in your company and keeps the information up to date. This can save you a lot of money because your teams can eliminate redundant IT assets and thus improve utilization. At the same time, you can generate significant cost savings by avoiding unnecessary purchases and lowering licensing and support expenses. 

    

2.  ITAM Creates a Central Source of Information:
   Assets are often tracked in many different places and by different people and you can never be sure whether your assets data is accurate or up to date. This is where ITAM plays a vital role in bringing structure and clarity to the IT landscape by creating a central, accessible information hub for IT, management, and the entire organization. Moreover, the automation of asset tracking, usage analysis, and dependency identification within ITAM frees up valuable resources and reduces the operational burden on ITSM teams. 

    

3. ITAM Delivers Security and Compliance Benefits:
   Effective IT Asset Management (ITAM) delivers significant security and compliance benefits. By meticulously tracking asset configurations and patch statuses, ITAM plays a crucial role in reducing security risks and improving visibility into unauthorized software or hardware installations. Furthermore, it ensures adherence to software licensing agreements and regulatory requirements, streamlining software audits through accurate and up-to-date asset data. Ultimately, this comprehensive understanding of the IT environment empowers organizations with better risk management capabilities by clearly identifying vulnerable assets and their locations.

    

4. ITAM Supports ITSM Practices and Teams Organization-Wide:
   When an organization possesses comprehensive and reliable knowledge of its IT assets, it fosters value creation. After all, with accurate data at their disposal, teams can accelerate action and proactively assess the impact of changes. As such, ITAM also plays an important role in processes such as incident management, problem management or change management.  

Common ITAM Misconceptions  

In defining what ITAM is, it’s also helpful to understand what it is not. Here’s a breakdown of common misconceptions and what ITAM doesn’t encompass: 

• ITAM is not just an inventory: While inventory tracking is a crucial part of ITAM, it’s not the sole purpose. ITAM involves managing the entire lifecycle, including financial and contractual aspects.   

   

• ITAM is not a one-time project: ITAM is an ongoing process, not a single event. It requires continuous monitoring, updating, and optimization to remain effective.    

   

• ITAM is not the same as IT Service Management (ITSM): Although related, ITAM and ITSM are distinct. ITSM focuses on delivering and managing IT services to meet user needs, while ITAM focuses on managing the assets that enable those services. They work together, but they are not the same thing.   

   

• ITAM is not simply about cost reduction: While cost optimization is a benefit of ITAM, it’s not the only goal. ITAM also aims to improve compliance, reduce risks, and maximize the value of IT investments.   

   

• ITAM is not just a technical function: While IT departments are heavily involved, effective ITAM requires collaboration with finance, legal, and other departments to manage contracts, budgets, and compliance.    

In essence, ITAM is a comprehensive, ongoing practice that provides a holistic view of an organization’s IT assets, rather than a narrow, isolated function.
This established, how do you go about creating and managing an effective ITAM strategy? 

Steps to Developing a High-Impact ITAM Strategy 

Effectively managing an ITAM strategy requires a structured approach that addresses various aspects of the asset lifecycle.  

1. Establish a Strong Foundation:
   
   Develop a comprehensive ITAM policy: Outline ITAM roles and responsibilities, procedures for acquisition, usage, maintenance, and disposal. Clearly define the scope, objectives, and guidelines for managing all IT assets. Also ensure the policy addresses compliance with licensing agreements and regulations.
   
   Create a centralized asset inventory: Maintain an accurate and up-to-date inventory of all hardware, software, and cloud assets. Include detailed information such as asset type, location, user, purchase date, and warranty status. Ensure you establish a “single source of truth” for all asset-related data.  

2. Implement Effective Processes:
   
   Automate asset discovery and tracking: Utilize ITAM software to automate the detection of new assets and track changes to existing ones. This will reduce manual effort and improve accuracy.
   
   Optimize software license management: Conduct regular audits to ensure compliance with software licensing agreements. Track license usage and identify opportunities to optimize license allocation and implement software metering tools.
   
   Manage the asset lifecycle: Develop standardized procedures for each stage of the asset lifecycle, from procurement to disposal. Implement proactive maintenance and upgrade schedules and ensure secure data sanitization during asset disposal.
   
   Conduct regular audits: Conduct regular audits of your asset inventory and software licensing positions. This will ensure that your data is accurate, and that your organization remains compliant. 

3. Enhance Security and Compliance:
   
   Integrate ITAM with security practices: Use your ITAM data to identify and mitigate security vulnerabilities. Ensure that all assets are properly patched and secured and incorporate ITAM within your organization’s overall risk management strategy.
   Ensure regulatory compliance: Maintain accurate records to demonstrate compliance with relevant regulations and stay up-to-date on changes that may impact ITAM. 

4. Foster Collaboration and Communication: Promote cross-departmental collaboration: Encourage collaboration between IT, finance, legal, procurement, and other departments. Establish clear communication channels for sharing asset-related information.
   Provide ITAM training and awareness: Educate employees on ITAM policies and procedures. Raise awareness of the importance of responsible asset management. 

5. Utilize ITAM Tools, Technology and Specialist Partners: Implement ITAM software: Select ITAM tools that meet your organization’s specific needs but ensure that the tools integrate with your existing IT systems.
   Engage a trusted ITAM partner: Partner with ITAM specialists, such as Anglepoint, who can help you confidently manage your IT assets and establish a robust ITAM strategy that enhances efficiency, reduces costs, and mitigates risks. 

How Anglepoint can help
As the global leader in IT Asset Management (ITAM), Anglepoint works directly with organizations to ensure they remain compliant with licensing requirements, optimize asset usage, and meet complex regulatory or legislative demands.  

Anglepoint’s ITAM experts can work with directly with your internal team to deliver an effective ITAM strategy. To find out how and to learn more about the services we provide, click here for more information.