What Is IT Asset Management (ITAM)?

IT asset management (ITAM) is a structured system for organizing, provisioning, deploying, maintaining, and deprovisioning business assets. It allows organizations to keep track of IT assets like hardware and software systems, as well as the data those systems process.

Overview of IT Asset Management

All organizations use IT assets to generate value. As an organization grows, the number and variety of assets expands at a rapid pace. Keeping track of those assets is the first step toward managing and securing them effectively.

Keeping all of these different assets organized is a major challenge for IT leaders. Most startups and small businesses address IT asset management needs with a simple spreadsheet. However, maintaining an accurate, up-to-date, and error-free spreadsheet quickly becomes a time-consuming process that limits growth in other areas.

ITAM technology provides a simple, centralized solution for identifying and controlling IT assets in complex environments. Automating asset management frees IT professionals to spend more time on higher-impact strategic initiatives while dramatically improving the organization’s overall security posture.

Why Is IT Asset Management Important?

IT Asset Management helps organizations secure the tools and systems they use to conduct business. It gives the IT team visibility into all the different assets the organization uses. It also helps identify vulnerabilities, mitigate risks, and apply patches in a timely manner.

Unmanaged assets increase security risks and drag down performance. The average business uses between 121 and 182 unsanctioned software-as-a-service (SaaS) applications, which offer no visibility or control to security teams. These unmanaged applications can account for more than 50% of the enterprise’s entire tech stack.

At the same time, most IT departments struggle to keep up with new technology requests. This creates backlog issues that impact security and performance. It can also drive users to use IT resources without approval.

When cybercriminals conduct reconnaissance on potential victims, they can easily discover these unsanctioned applications. Nearly half of all cyberattacks stem from shadow IT, and the average cost of fixing them amounts to more than $4.2 million.

What Is an IT Asset? Key Components of ITAM

Assets include everything from desktop and laptop workstations to software applications, cloud microservices, and everything in between. Every technology, system, or resource in your IT environment is an asset.

There are three main asset classes that ITAM solutions can help manage. Each of these asset categories come with different requirements that the IT team must consistently address.

Hardware Asset Management

Hardware assets include physical equipment used to store, process, and transmit data. That includes end user devices, networking hardware, datacenter equipment, and any peripherals employees use. It also includes connected Internet of Things (IoT) devices like smart appliances and access control systems.

Physical equipment must be deployed, configured, maintained, and eventually deprovisioned as part of its lifecycle. Conducting physical hardware maintenance often means dispatching technicians to the physical location of the equipment.

Deprovisioning physical hardware also presents challenges to IT teams. Obsolete systems may still contain data threat actors could use to conduct cyberattacks. Employee-owned equipment must be decommissioned when departing employees leave the company. 

Software Asset Management

Software assets include the applications employees use to generate value on a day-to-day basis. Every layer of an organization’s tech stack corresponds to software assets. These must all be licensed, budgeted, maintained, and managed effectively.

Software asset management can be incredibly complex, even for an organization of modest size. That’s because software applications come with numerous requirements that must be factored into the asset management process, such as:

• License management. Different vendors use different software subscription models, like term licensing, device licensing, or usage-based licensing. IT leaders need to convert these to a single, easy-to-understand metric based on the organization’s real-world needs.
• Software inventory. Every software application in the organization’s tech stack should be accessible through a centralized inventory. IT teams must update the inventory to reflect changes as new software is added to the stack.
• Budget optimization. Software vendors with usage-based licensing may charge unexpected fees for certain types of usage. This can lead to sticker shock when the bill comes in much higher than expected.
• Vendor management. Selecting vendors, negotiating contracts, evaluating performance, and managing third-party risk all fall into this category of software asset management. 
• Usage monitoring. Maintaining cost-effective software application usage requires visibility into how employees and software systems interact. ITAM platforms provide application and usage monitoring tools that help pinpoint opportunities to improve.

Network Asset Management

Network assets include servers, routers, switches, and other components of the organization’s IT network. In the past, these devices were almost entirely hardware-based, but now software and cloud-hosted options have widened the playing field for IT leaders.

Managing these assets effectively means gaining deep insight into how well they support business objectives and how they might scale to meet future goals. Most organizations use a variety of hardware and software networking assets. Finding the right balance between the two is vital to ensuring stable, predictable growth.

IT leaders with excellent network asset management solutions in place can quickly react when the organization’s networking needs change. They can increase the efficiency of IT infrastructure while planning ahead for future deployments in a cost-effective way.

Including network asset management as part of a comprehensive ITAM solution helps maintain reliability and reduce downtime. It also contributes to security, especially when combined with technology that grants visibility into unauthorized network traffic patterns.

The IT Asset Management Lifecycle

Every IT asset follows a predictable lifecycle. Efficient IT leaders manage each phase of the lifecycle in a structured way. This is one of the main advantages to creating an integrated IT asset management policy and enforcing it with ITAM technology. 

The IT management lifecycle can be broken down into nine major steps. Here’s an overview of each one:

• Planning and procurement. This step begins the moment the organization recognizes the need for new technology. It includes the process of obtaining stakeholder buy-in for the new acquisition and submitting the asset request in an organized way.
• Installation. Installation varies depending on the type of asset. Hardware asset installation involves physically connecting components to one another, while software installation may be as simple as downloading an installer package and running it.
• Configuration. Once the asset is installed, it must be configured to fit the specific needs of your IT environment. This phase often includes provisioning the asset and integrating it with your existing tech stack. Some assets provide native integration functionality, while others require IT staff to create custom integrations.
• Documentation. Standard operating procedures give employees a clear set of expectations to meet when using new IT assets. The more complex the new technology is, the more comprehensive its documentation requirements are likely to be.
• Training. Simply providing employees with documentation is rarely enough to ensure good performance. Employee training ensures people understand how to use the asset appropriately.
• Routine maintenance. Every IT asset requires maintenance at one point or another. Between hardware components that break down and software vulnerability patches, there will always be a list of tasks the IT team needs to address to keep business running on time.
• Monitoring. One of the main benefits of deploying ITAM technology is gaining visibility into the organization’s entire tech stack and being able to monitor asset usage in real time. IT leaders will have to deploy resources toward conducting monitoring tasks — either using in-house employees or outsourced vendors.
• Support. When users run into problems using IT assets, they request support from the IT team. Addressing support requests can be a major part of an IT team’s daily responsibilities, even when the majority of support requests are outsourced to third-party service providers.
• Retirement and disposal. When an IT asset reaches the end of its useful life, it must be disposed of properly. Any sensitive data it contains must be erased, and any user accounts with access to it must be adjusted. Some jurisdictions have strict regulations about how organizations can dispose of hardware IT assets.

Best Practices for Successful IT Asset Management

Most organizations pursue ITAM initiatives when manually managing assets becomes too time-consuming and cumbersome for the team. Effectively transitioning to an IT asset management framework can be challenging, but IT leaders can improve results by adhering to the following best practices.

1. Establish clear IT asset lifecycle policies first

The organization needs a complete set of policies and procedures that outline the IT asset lifecycle from start to finish. These policies will form the basis of ITAM deployment, providing clear insight into the business problems the deployment is meant to solve and ensuring consistency throughout the initiative.

2. Prioritize automated inventory tracking

Most organizations start the IT asset management process by manually updating spreadsheets. There are strict limits on how far the organization can grow before this becomes impractical. Automated inventory tracking and management plays an important role enhancing the overall productivity of the IT team.

3. Conduct regular internal audits

Errors complicate the IT asset management process and increase the organization’s overall exposure to security risks. Conducting internal audits helps catch discrepancies and irregularities before they lead to problems. Consider adopting a proactive approach to verifying the way IT staff put ITAM policies into practice.

4. Train employees to use standard procedures

Employees who aren’t familiar with ITAM policies are likely to find new deployment requirements confusing, or even dismiss them as unnecessary. Effective training should focus on demonstrating the value of ITAM and provide guidance on using it to meet organization-wide security goals.

IT Asset Management and Compliance

IT leaders often pursue ITAM deployments as part of a wider push toward regulatory compliance. Popular frameworks like NIST SP 1800-5 and DORA specify strict IT asset management requirements. Federal agencies like the U.S. Department of Defense have well-defined requirements (DoD 5000.64 and DoD 4140.73), as well.

Many modern ITAM platforms are designed specifically to meet these kinds of requirements. Preconfigured compliance configurations help IT leaders meet compliance goals without having to build an entire asset management structure from scratch.

Benefits of Effective IT Asset Management

Some of the major benefits ITAM offers IT leaders include:

• Efficient asset management processes. Automating the process of deploying assets and provisioning employees gives IT practitioners more time to engage in high-impact strategic initiatives.
• Improved operational efficiency. Transitioning to new technologies often drags down employee performance in the short term. ITAM accelerates integration and reduces the impact of new integrations on overall productivity.
• Visibility into the entire asset lifecycle. Keeping track of complex assets helps IT teams identify shadow IT risks and proactively maintain systems to prevent downtime.
• Optimized asset utilization. Underutilized assets suggest inefficient purchases and IT sprawl. Overutilization might lead to production bottlenecks. In both cases, management will want to act based on the data ITAM collects.
• User accountability. ITAM keeps track of where devices are, who they are assigned to, and what applications are installed on any given device at any given time. This helps establish accountability for employees who are entrusted with sensitive data on mobile phones or other physical hardware.
• Better vendor contract management. Robust asset records help IT leaders communicate with vendors and obtain favorable terms when negotiating contracts. ITAM also helps forecast equipment replacement needs and service contract renewals.
• Increased security. ITAM helps security teams improve incident response, endpoint protection, and vulnerability management performance. These use cases often rely on integrating ITAM with centralized security platforms and visibility controls.

Common Challenges in IT Asset Management

Implementing ITAM in a complex enterprise environment is not always easy. Here are four obstacles to optimal asset management that IT leaders frequently encounter:

• Inadequate visibility into IT assets. Many organizations have difficulty maintaining complete visibility into their IT environment. Ongoing asset discovery and integration is vital for effective IT asset management.
• Tracking remote users effectively. Remote and hybrid employees may use physical devices that the organization doesn’t have visibility into. This can create issues when sensitive business data is stored on an employee-owned device that the IT team doesn’t know about.
• Complex compliance requirements. Regulatory frameworks are often very strict about how organizations should manage IT assets. These requirements are not necessarily designed to scale well, putting pressure on organizations undergoing rapid growth.
• Tech stack fragmentation. When organizations don’t have a single source of truth for IT asset management processes, employees may find contradictory information across multiple tools in the tech stack. 

Future Trends in IT Asset Management

As the number of value-generating IT assets available to organizations grows, the enterprise tech stack is only going to become larger and more complex. Emerging technologies like generative AI are likely to expand the average enterprise asset inventory even wider than it is today.

That means that the enterprise attack surface is also going to expand. Keeping track of rapidly changing IT asset inventories will require highly automated ITAM platforms capable of leveraging the latest technologies to discover, categorize, and manage a variety of devices and applications.

JumpCloud’s approach to all-in-one SaaS, IT security, and asset management gives enterprise IT leaders a comprehensive suite of tools for keeping IT assets well-managed and secure. Schedule a demo to find out how JumpCloud can help you take control of your organization’s expanding fleet of IT assets effectively.