CMDB vs. asset management - what’s the difference?

Configuration management databases (CMDBs) and asset management systems can serve as integral elements of any business in any industry, but only continue to grow in importance as an organization expands. As companies acquire more resources and IT services, it becomes increasingly necessary to possess a unified platform that provides a comprehensive overview of all assets and technical configurations across multiple locations or departments. 

But which approach is best for you? A CMDB? Asset management? Both? There’s no one-size-fits all answer to this question; you’ll need to evaluate your organization’s unique requirements and IT environment to determine which strategy is most appropriate.

Today, we’ll dive into the differences between CMDBs and asset management, how both systems can optimize particular business processes, and how to ascertain which is right for your organization.

What is asset management?

Asset management is a systematic approach to administering the assets owned by a business. It typically involves a wide range of activities such as acquiring, maintaining, and eventually disposing of resources in an efficient and effective manner. The goal of asset management is to ensure that these assets continue to generate the highest possible return on investment (ROI) throughout their lifecycles. This can include physical resources like machinery and infrastructure, as well as financial assets such as stocks and bonds.

What is CMDB?

Conversely, a CMDB acts as a centralized repository used in IT service management (ITSM) to store information about a company’s hardware and software components. The CMDB records details on the attributes of these items and the relationships between them, enabling better management of IT services. By maintaining an extensive inventory of all technical assets and their configurations, a CMDB allows organizations to comprehend how different components work together and how changes made in one area might affect others.

A CMDB differs from asset management in that it’s specifically focused on IT assets within the context of ITSM. It emphasizes understanding how technical components interact and depend on each other to deliver services, rather than covering all of a business’s assets throughout their entire life cycles.

Key differences between asset management and CMDB

Breaking down the specific differences in these systems’ key areas of operations can provide a better understanding of their differences as a whole. That being said, let’s dive into some of the main distinctions in scope, value, tools, and the use of asset management and CMDBs.

Focus areas

A CMDB’s main purpose is to provide a comprehensive understanding of how various configuration items (CIs) such as servers, applications, and software interact with and depend on each other. By mapping the interdependencies between these assets, CMDBs help in predicting the impact of change initiatives and maintaining the stability of IT services.

Alternatively, asset management emphasizes the broader lifecycle of an organization's resources, both IT and non-IT. It involves monitoring every phase of an asset’s lifespan, ensuring that they’re always used effectively and not being underutilized or overutilized.

As it stands now, technical professionals estimate that, on average, 36% of their desktop software spend is underused or wasted, suggesting a need for competent asset management systems to ensure that these resources are being employed optimally.

Value propositions

CMDBs’ unique value proposition (UVP) centers around their ability to assist in overseeing ITSM practices. The core value of a CMDB lies in its capacity to provide a unified view of IT assets and their relationships, thus enabling businesses to better manage changes and mitigate potential risks.

As for asset management, its UVP lies in enhancing financial accountability, improving resource allocation, and ensuring regulatory compliance. 46% of asset managers currently consider compliance a top challenge; a robust software can assist in monitoring these efforts in real time, distributing automated notifications to relevant team members when it identifies a potential violation.

Tooling

Specialized software is often utilized to capture and manage detailed information abouts CIs in a CMDB. These tools are focused on maintaining a comprehensive inventory of IT assets, their relationships, and dependencies. Many CMDB systems also feature capabilities for automated discovery of IT assets, configuration management, and integration with ITSM processes such as incident and change management. 

Conversely, asset management tools are designed to track assets across their entire lifecycles. They typically provide functionalities for financial tracking, contract management, and compliance reporting. Businesses might integrate these tools with procurement software and enterprise resource planning (ERP) systems to provide a consolidated view of all organizational resources.

Use cases

Suppose that an enterprise-level IT department wants to implement IT infrastructure library (ITIL) best practices to enhance its service management. In this scenario, the organization uses a CMDB to maintain a comprehensive and up-to-date repository of all CIs, including servers, network devices, applications, and their interdependencies. By leveraging the CMDB, the department gains visibility into the relationships between technical resources, empowering them to conduct impact assessments for adjustments, quickly resolve incidents, and effectively manage configuration drift. 

On the other hand, imagine a manufacturing company that introduces an asset management system to optimize the lifecycle of its production equipment. Leveraging specialized tools, the organization tracks each piece of machinery from acquisition through eventual disposal, verifying that they’re maintained at peak efficiency. The platform monitors equipment performance metrics and forecasts replacement needs based on usage patterns and asset condition. This proactive approach aids in reducing operational costs associated with unexpected repairs and extending the lifespan of critical production resources.

Why are CMDB and asset management important?

By dynamically managing assets from acquisition through retirement, organizations verify that their resources are always used optimally and maintained properly. Effective asset management ensures that every asset contributes to a company’s overarching objectives, while also providing the best possible ROI.

CMDBs, on the other hand, provide a holistic understanding that helps manage IT environments efficiently, allowing technical teams to see how various components interact with each other. Leveraging this knowledge, organizations can better plan and execute changes, verifying that modifications to one component don’t inadvertently disrupt others. 

CMDB and asset management: Which should you use?

If your primary focus lies in managing the lifecycle of both IT and non-IT assets, then an asset management system is essential. These practices are particularly important for companies with a diverse range of physical assets and those looking to optimize their ROIs.

In contrast, if your main concern is ITSM and the relationships between technical components, a CMDB is more appropriate. Organizations with complex technical infrastructures often benefit significantly from a CMDB.

Better yet, if your budget allows for it, employ a synergistic approach that leverages both for a dynamic overview of all resources and their relationships to one another. Connecting these two systems empowers companies to comprehensively manage all of their assets, both in terms of lifecycle management and configuration management.

Boost your CMBD and asset management capabilities today with Freshservice!

Freshworks’ Freshservice acts as a full-feature, cloud-based service management solution, offering a plethora of useful features designed to enhance asset management and IT configuration efforts.

Freshservice can auto-capture both cloud and on-premises asset details to promote improved visibility, while also providing unified lifecycle management to track resources from procurement to retirement. With inventory management, SaaS management, and contract management tools to boot, Freshservice ensures that all areas of your operations are thoroughly monitored.

Even more, Freshservice offers a multi-source, 360-degree CMDB that delivers effective root cause analyses, efficient change deployments, and much more.