What is IT Asset Management?: An Ultimate Guide for 2025

What is IT Asset Management (ITAM)?

IT asset management (ITAM) is the process of systematically tracking, managing, and optimizing an organization’s IT assets throughout their lifecycle. ITAM ensures that every asset is accounted for, properly maintained, and aligned with the organization’s strategic goals. It goes beyond simple inventory tracking by enabling businesses to monitor asset performance, ensure compliance with licensing agreements, and make data-driven decisions to control costs and improve efficiency.

What are the types of IT asset management?

IT assets can be categorised into three types : software, hardware, and cloud. Each element plays a vital role in ensuring organizations maintain control over their technology investments, streamline operations, and meet compliance requirements. Together, these assets provide a comprehensive view of assets throughout their lifecycle–helping businesses optimize costs, reduce risks, and align IT resources with strategic goals.

Software Asset Management (SAM):

This type monitors and governs software licenses, usage, and costs. It guarantees compliance, strengthens security, and curbs costs. SAM uncovers "shadow IT" and adjusts to the evolving world of IoT devices. Continuous oversight aligns software assets with business goals, regulations, and market shifts.

Hardware Asset Management (HAM):

Hardware asset management orchestrates the entire lifecycle of physical hardware within an organization. It spans PCs, laptops, printers, servers, and mobile devices. HAM tracks inventory, directs procurement and deployment, manages repairs, and ensures proper disposal when assets reach the end of their life.

Cloud Asset Management:

This type tracks and analyzes the consumption of cloud resources like SaaS, IaaS, and PaaS. It uncovers opportunities for cost reduction and fine-tunes resource allocation. Continuous tracking ensures compliance with service agreements and helps organizations refine their cloud infrastructure.

Hardware Asset Management vs. Software Asset Management

Hardware Asset Management (HAM) focuses on tracking, managing, and optimizing physical IT assets such as computers, servers, networking equipment, and peripherals. With a hardware asset management system, organizations can monitor the full lifecycle of assets from procurement to retirement, ensuring efficient utilization and cost savings. HAM often involves barcode scanning or RFID tagging for accurate tracking of physical assets.

Software Asset Management (SAM) is concerned with acquiring, deploying, and tracking software licenses and applications across an organization. SAM ensures license compliance, optimizes software expenditure, and helps manage installations and usage patterns. A software asset management solution tracks license usage and identifies issues like over-licensing or underutilization.

While hardware asset management typically uses physical tracking methods, such as barcodes or RFID, software asset management relies on tools and platforms that track software usage and manage licenses effectively.

The Advantages of IT Asset Management in 2025

1. Centralized asset information

• Centralized asset information consulates data across hardware, software, licenses, and cloud subscriptions, providing complete visibility in one place.

• With better visibility, businesses can reduce the time spent on asset tracking and improve decision-making by relying on accurate, real-time data. 

2. Software Asset Management (SAM)

• Tracks software licenses, usage, and costs to ensure compliance, optimize spending, and avoid legal and financial risks.

• Essential for companies to control software costs, ensure they have the right licenses for their needs, and avoid potential legal issues like software piracy.

3. Hardware Asset Management (HAM)

• Manages the lifecycle of hardware assets, including procurement, deployment, maintenance, and disposal.

• Helps organizations optimize hardware spending, reduce downtime, improve asset utilization, and ensure data security.

4. Enterprise Asset Management (EAM)

• Integrates the management of both software and hardware assets across the entire organization.

• Provides a holistic view of all assets, enabling better decision-making, improved resource allocation, and reduced operational costs.

5. SaaS License Management

• Tracks and manages subscriptions for Software as a Service (SaaS) applications.

• Helps organizations optimize SaaS spending, ensure compliance with licensing terms, and improve visibility into SaaS usage.

6. Asset Onboarding and Offboarding

• Automates the processes of adding new assets to the inventory and removing old ones.

• Streamlines asset management processes, reduces manual effort, and improves accuracy.

7. Contract and Renewal Management

• Manages software and hardware contracts, including renewals, upgrades, and maintenance agreements.

• Helps organizations negotiate better deals, avoid unexpected costs, and ensure they have the necessary support for their assets.

5. Proactive Risk Management 

• Effective IT asset management minimizes the risks by providing complete visibility into an organization’s technology landscape.

• By tracking assets in real-time, businesses can identify vulnerabilities– such as outdated software, unpatched systems, or missing licenses–before they lead to security breaches or compliance issues.

ISO Standards for IT Asset Management

The International Standards Organization (ISO) has established the ISO 19770 family of standards for IT Asset Management (ITAM), which is divided into five parts. These standards help organizations implement and improve their ITAM practices to align with governance and operational needs. Here's an overview of each part:

1. ISO/IEC 19770-1: This part outlines best practices for ITAM within organizations. It helps companies meet governance requirements and ensure ITAM procedures align with industry standards.

2. ISO/IEC 19770-2: Focuses on identifying software on a device. It provides a standard for software identification tags, enabling companies to track software deployed on devices accurately.

3. ISO/IEC 19770-3: Details the entitlements associated with software and the methods for measuring its consumption. This standard ensures proper tracking of software usage and compliance with licensing terms.

4. ISO/IEC 19770-4: Provides a standardized approach for reporting resource usage, particularly for managing complex software licenses and cloud-based resources. This helps organizations accurately measure and report their resource utilization.

5. ISO/IEC 19770-5: This part offers an overview of all the ISO ITAM standards and the vocabulary associated with them. It serves as a reference for understanding the full scope of ISO’s ITAM framework.

Complete Lifecycle of the IT Asset Management Process

An Overview of the Different ISO Standards for ITAM and IT Asset Management Processes

ITAM processes are essential for organizations to track the complete IT asset lifecycle. This lifecycle includes a series of steps, each designed to ensure that IT assets are managed effectively, from initial request to final retirement. Below are the key stages involved in IT asset management:

1. Create a detailed asset inventory: The ITAM process starts with registering all IT assets within your organization. This includes hardware like computers and servers, as well as software licenses and other technology-related items. Each asset is given a unique identifier, which is crucial for easy tracking and efficient asset management throughout its lifecycle.

2. Checking Assets as a Whole: Once registered, the organization should assess the entire inventory of assets. This involves reviewing each asset’s quantity, condition, and usage to ensure that resources are allocated optimally and assets are performing at their best. This assessment is a critical part of managing the IT asset lifecycle effectively.

3. Calculate lifecycle costs: The next step is to calculate the lifecycle costs for each asset in your inventory. Throughout an asset’s lifespan, various costs can arise, including maintenance, capital, and disposal expenses. By calculating these lifecycle costs, you ensure your asset inventory is both accurate and actionable.

4. Track your IT assets: The fourth step is to track assets using an asset management tool. The goal is to monitor IT assets throughout their lifecycle, focusing on key details like contract, license, and warranty expiration. Effective tracking also prepares you for the next step, maintenance.

5. Asset Maintenance Processes: Regular maintenance is crucial to keep IT assets running smoothly. This includes software updates, hardware repairs, and system optimizations. Proactive maintenance can prevent costly downtime and extend the lifespan of assets, ensuring that they continue to meet the organization's needs over time.

6. Financial Planning: The sixth and final step is financial planning. With a clear view of your IT assets, their lifecycle stages, and associated costs, you can plan effectively for the future. One key objective is to determine the budget required to maintain or enhance the "levels of service" for your most critical assets. Assets that were well-managed with high service levels, such as a service desk with a dedicated team, will need similar support going forward. Conversely, assets that underperformed may require increased service levels in the future, leading to higher costs.

By following these comprehensive steps in the IT asset lifecycle, organizations can optimize their ITAM processes. These steps help ensure that assets are effectively tracked, maintained, and managed throughout their lifecycle, ensuring maximum value, cost savings, and compliance.

Learn IT asset management best practices

Here are some best practices to help you streamline your ITAM processes and maximize the value of your IT assets:

• Comprehensive Asset Inventory: Make IT asset discovery easier by creating a comprehensive inventory of all IT assets across your organization. This includes hardware assets such as computers, servers, networking devices, and mobile devices, as well as software assets like licenses, applications, databases, and digital content. 

• Asset Lifecycle Management: Implement a structured approach to managing the lifecycle of IT assets from acquisition to disposal. This includes asset identification, procurement, deployment, maintenance, upgrades, tracking, retirement, and disposal. 

• Asset Tracking and Monitoring: Use asset tracking tools and systems to monitor asset usage, track asset movement, and status changes, and ensure compliance with licensing agreements and regulatory requirements. Conduct regular audits and assessments to verify asset data accuracy, identify discrepancies, and address any issues proactively.

• Optimized Asset Utilization: Monitor usage patterns, identify underutilized or overutilized assets, and make informed decisions about asset allocation, upgrades, maintenance, and retirement. 

• Software License Management: Track software licenses, monitor license usage, manage license agreements, and ensure compliance with licensing terms and conditions. 

• Security and Compliance: Ensure IT assets are secure, protected against cyber threats, and compliant with security policies, standards, and regulations. Implement security measures such as encryption, access controls, patch management, and regular vulnerability assessments to mitigate security risks and vulnerabilities.

• Documentation and Reporting: Maintain detailed documentation of IT assets, asset-related activities, changes, incidents, and issues. Generate regular reports and analytics to track asset performance, costs, usage trends, compliance status, and ROI.

Choosing the right IT asset management software in 2025

Choosing the right IT asset management software in 2025 requires evaluating solutions that align with your organization’s specific needs and future growth. Look for software that offers real-time tracking, automated workflows, and seamless integration with existing tools like IT service management (ITSM) platforms and CMDBs. Features such as cloud compatibility, advanced analytics, and customizable reporting are essential for gaining actionable insights and ensuring compliance. Scalability is also crucial, as businesses need software that can grow with their operations. Ultimately, selecting the right ITAM solution ensures smoother asset management, cost control, and better strategic decision-making.

Streamline your IT Asset Management with a Suitable Solution

This guide provides a comprehensive introduction to getting started with IT asset management (ITAM) using Freshservice, helping organizations effectively manage their IT assets from acquisition to disposal. By centralizing asset data in a single platform, Freshservice’s ITAM module offers tools to track, maintain, and optimize assets throughout their lifecycle. The guide walks you through the essential components of ITAM, including asset inventory, lifecycle costs, maintaining scheduling, and financial planning, all while demonstrating how Freshservice streamlines each process for better control and cost management. For businesses just beginning with ITAM, Freshservice streamlines each process for better control and cost management. For businesses just beginning with ITAM, Freshservice provides an intuitive starting point, integrating with existing IT service management (ITSM) processes to ensure smooth operations and immediate value. With a focus on automation, compliance, and integration, Freshservice’s ITAM module empowered teams to make informed decisions, eliminate redundant purchases, and maintain regulatory adherence. This guide also highlights key features in Freshservice, such as real-time tracking, reporting, and easy access to a Configuration Management Database (CMDB) for mapping asset relationships. Additionally, it offers insights into choosing the right ITAM software and leveraging Freshservice’s unique capabilities to optimize IT resources. Whether you’re aiming to reduce costs, enhance productivity, or improve asset lifecycle management, this guide equips you with everything needed to establish an efficient ITAM process using Freshservice.