1. What are IT assets?
IT assets are the most essential components within an IT environment. Simply put, any software, hardware, or information that an organization value is known as the IT assets.
2. What is IT asset management?
The process by which the IT assets are maintained, deployed, upgraded and disposed of at the right time is called IT Asset Management. With the help of IT asset management, IT assets can be tracked for an upgrade, replacement or support including software license management.
3. What are the types of asset management?
IT asset management is a broader term that includes multiple types such as:
Digital Asset Management
Also known as intellectual property management, this type of IT asset management refers to the maintenance and management of digital assets like videos, photos, presentations, files, documents, etc. These assets may be produced by your organization or procured from a third party.
Software Asset Management
Any organization tends to use different software solutions/platforms to conduct their businesses. These are known as software assets. Ensuring seamless software asset management is crucial, given that they form the backbone of many business processes. Hence, you should regularly evaluate its compliance, functionalities, and performance.
With the constant need for more software assets, there are several licenses in your organization. These software licenses must be renewed on time to ensure business continuity. Every time the license is renewed, the agreements must be verified to check for compliance with the latest organizational regulations and policies.
Hardware asset management
In recent years, despite digital transformation, hardware assets continue to be an integral part of executing business processes. But unnecessary maintenance costs should be eliminated by consistently checking the hardware warranties. It can empower you to keep track of warranty type, expiry date, and other covered details.
IT Asset examples
IT ecosystems can be highly complex since they involve various devices, systems, networks, and facilities. Also, many of the assets are obtained from third parties, which makes it difficult to clearly define the IT assets of an organization. Generally, IT assets are defined based on the business type, role, or applications.
A few examples of IT assets are:
Computers, laptops, mobile phones, projectors, and printers are a few of the end-user devices - defined as company-owned or leased IT assets.
In-house developed software products
Any software solution developed internally is an IT asset that belongs to the organization.
Infrastructure hardware assets include data centers, servers, modems, and network devices comprise
Data is one of the most important IT assets in your organization. The data obtained from operational processes and research can be a competitive differentiator in your organization’s growth.
Fixed Asset Management
IT Asset Management
Enterprise Asset Management
Financial Asset Management
4. What is IT Asset lifecycle management?
The IT asset of a company is the essential information and IT components of an organisation. When these assets go through a set of stages in the organisation, it is called the IT asset lifecycle. The IT asset lifecycle management keeps the owner of the organisation informed about the needs, changes and services required for better productivity.
The steps of an IT asset lifecycle include:
The first step is to plan what type of IT assets that your organization should invest in. The planning stage includes calculating the total asset costs involved.
The second step is to procure the assets.
The third stage involves the installation and integration of the IT asset tool with the existing system.
The fourth step involves maintenance, repairs, upgrades, and updates.
When an asset is no longer required for the organization or when it no longer serves its purpose, it needs to be retired.
5. What are the goals of IT asset management?
6. HAM (Hardware asset management) & SAM (software asset management) are similar to each other?
Hardware Asset Management tracks and manages the physical components of IT that are laptops, desktops, servers, etc.
On the other hand, Software Asset Management manages and optimizes the purchases, deployment, maintenance and disposal of software components of IT.
7. What is the difference between Fixed Asset Management and Asset Management Software?
The process by which an organization’s physical assets are maintained and tracked is known as Fixed Asset Management system.
IT Asset Management Software on the other hand is software that manages all the IT practices of an organization. It is a dedicated application that simplifies the entire asset management procedure.
8. Who uses Asset Management Software?
Any business organisation may need an Asset Management system in order to keep IT / Non-IT assets maintained and track them with a systematic approach.
9. What are the types of IT assessment tools?
Some of the IT assessment tools include:
License management tool - Monitor and track software licenses, expiry date, and renewal date while ensuring regulatory compliance.
Automated inventory tool - Identify all the IT assets in your organization
Product/Service catalog tool - Create a list of all the approved products/services with a fixed assets management software tool and track software details like name, version, license agreement, etc.
Database management tool – Build a central repository of your IT assets – along with configurations, versions, and other details for easy checking and verification.
10. What is the difference between Asset Management Software and Asset Tracking?
Asset Management Software is software that manages all the IT practices of an organization. It is a dedicated application that simplifies the entire asset management procedure.
Asset Tracking tracks all the assets that keep the business operations running. It can monitor the conditions of the assets, schedule maintenance, improve lifecycle management and lots more.
11. Why is IT asset management important?
IT Asset Management can be said as the backbone of an organisation. It accounts and tracks incoming assets, aids in financial, contractual and risk management's responsibilities that manage the lifecycle of each asset.
12. Importance of Asset Management
Hardware, software, and network are the most important assets for an IT company, but they are also expensive and difficult to maintain or improve. But poor asset management can disrupt the smooth functioning of your critical business processes.
12. How much does IT asset management cost?
IT Asset Management tools or software cost varies depending on the functionality and type of business organisation. For small to medium-sized businesses the asset management software can cost $20 to $50 a month. For larger organisations, the cost is mostly above $100.
13. What are the Common Features of Software Asset Management (SAM) Software?
- Asset Lifecycle Management.
- IT Asset Inventory Management.
- Tracking Assets.
- Maintenance Management.
- Work Order Management.
- One Centralized System.
- Asset Discovery.
- Software License Management
- Asset Spend Analysis
- Current True up cost, etc
14. What are the Benefits of Software Asset Management (SAM) Software?
- Saves your time, effort and money.
- Saves you from getting a penalty in terms of financial risk.
- Keeps you informed about all the assets.
- Helps you with budgeting.
- Mitigates the security risk.
- Reduces liability risks.
14. What are the Benefits of IT Asset Management?
There’s no denying that having an efficient IT asset inventory and management system can lead to tremendous business benefits. Some of them include:
Ownership cost management
The cost of ownership of IT assets includes the costs of purchasing the assets, acquiring the licenses, and renewing the subscriptions. It also includes the expenses incurred in managing and maintaining the assets. It is why monitoring the assets leads to extracting more ROI. A state-of-the-art IT asset management software helps keep track of all the assets and maximize the ROI.
IT asset management tools help manage and track all your assets to ensure a secure backup in case of system crashes or network outages. You also have all the necessary information on the assets involved in the business process.
Informed purchase and deployment
An IT asset lifecycle management software system helps you have a clear understanding of your IT assets. You are equipped with the right information while purchasing a new software system or deploying a product. It also aids in optimizing your business functions – unlocking more value from IT assets.
15. How is depreciation of Asset Calculated?
There are four methods for depreciation: straight line, declining balance, sum-of-the-years' digits, and units of production.
- Straight-Line Depreciationis a very common, and the simplest, method of calculating depreciation expense. In straight-line depreciation, the expense amount is the same every year over the useful life of the asset.
- Declining Balance DepreciationCompared to other depreciation methods, double-declining-balance depreciation results in a larger amount expensed in the earlier years as opposed to the later years of an asset’s useful life. The method reflects the fact that assets are typically more productive in their early years than in their later years. With the double-declining-balance method, the depreciation factor is 2x that of the straight-line expense method.
- Sum-of-the-Years' Digits Depreciationmethod is one of the accelerated depreciation methods. A higher expense is incurred in the early years and a lower expense in the latter years of the asset’s useful life.In the sum-of-the-years digits depreciation method, the remaining life of an asset is divided by the sum of the years and then multiplied by the depreciating base to determine the depreciation expense.
- Units of Production Depreciation method depreciates assets based on the total number of hours used or the total number of units to be produced by using the asset, over its useful life.
16. What is the difference between an agent and non-agent-based software asset management?
The installation of agent software for monitoring IT assets on each computerto be managed is called agent-based software asset management. They can collect a huge range of data of an IT assets.
Non-agent-based software asset management requires no agent to be installed. One does not need to install anything on the target systems. The non-agent system is faster and easier to implement, and it can collect a good amount of data.
17. How does software license compliance work?
Software license compliance allows identification and auditing of the software and software license of an organisation. This ensures that everything remains genuine according to the current policyand wasteful usage of unused licenses.Track overflow usage of licenses that have been activated but need to be legally purchased from the vendor.