A unified solution to govern your software usage

You're not alone if you're struggling to track devices, software licenses, or cloud management subscriptions across your business. As digital infrastructure expands, managing assets securely, cost-effectively, and without disruption becomes increasingly complex. That’s where IT asset management (ITAM) steps in. It helps you gain visibility and control over your technology usage, from laptops and servers to SaaS tools and mobile apps.

Let’s learn what IT asset management means in 2025, why it’s more important than ever, and how to apply it across your asset lifecycle, from procurement and deployment to retirement. 

What is IT asset management (ITAM)?

IT asset management (ITAM) is the structured process of tracking, maintaining, and optimizing every asset your organization uses to operate, from physical hardware and software to cloud-based services. In other words, it’s about knowing exactly what you own, how it's being used, and how to optimize the usage of those assets. 

Effective ITAM helps your organization monitor asset usage, prevent unnecessary purchases, and reduce waste. It also ensures compliance with software license management and regulatory requirements, lowering the risk of costly audits. 

ITAM helps improve security and minimize vulnerabilities. It also supports smarter budgeting and planning by providing a clear view of the asset lifecycle. Organizations with mature ITAM practices can achieve up to a 25% reduction in IT costs.

ITAM in 2025: What’s changed

A few years ago, IT asset management was quite different from how it is now. Traditional ways of handling assets, such as spreadsheets or separate systems, don't work as well with the rise of remote work, cloud-first strategies, and SaaS sprawl.

What’s changing in 2025:

• Hybrid and remote workforces demand asset visibility beyond office walls.

• SaaS proliferation increases license complexity and shadow IT risk.

• AI and automation are now essential for predictive maintenance and real-time tracking.

• Integrated ITSM tools are breaking down silos between asset, service, and incident management.

By embracing these advancements, you can position your organization to manage its IT assets effectively in an increasingly complex digital environment. However, not all assets are managed the same way. Understanding the different types of IT asset management is the next step toward building a comprehensive ITAM strategy.

Key types of IT asset management

Your IT environment includes various assets, including hardware, software, and cloud services. Each type works differently, serves a different purpose, and needs its specific ITAM strategy. Here’s a list of the various kinds of IT asset management based on asset type:

1. Hardware Asset Management (HAM)

Hardware asset management focuses on managing physical components, such as laptops, desktops, servers, networking equipment, and peripherals. Effective HAM involves tracking these assets from procurement through deployment, usage, maintenance, and eventual disposal.​

The global hardware asset management market is projected to expand from $33.5 billion in 2025 to $98.1 billion by 2035, reflecting a compound annual growth rate (CAGR) of 11.9%.This indicates the increasing need for organizations to embrace a tailored ITAM strategy for their business.

Key benefits of HAM include:

• Preventing asset loss and unauthorized usage.

• Ensuring timely maintenance and warranty tracking.

• Facilitating efficient asset allocation and utilization.

• Supporting compliance with regulatory standards​. 

2. Software Asset Management (SAM)

Software asset management involves overseeing software applications, licenses, and subscriptions to ensure efficient usage and compliance. It helps maintain licensing compliance, streamline software usage, and reduce overall cost.​

Effective SAM practices help:

• Avoid penalties from non-compliance

• Reduce unnecessary software expenditures

• Enhance security by managing software versions and patches

• Provide insights for future software investments​

3. Cloud asset management

Cloud asset management oversees cloud-based resources, including SaaS, IaaS, and PaaS offerings. 

Key aspects of cloud asset management include:

• Monitoring usage to optimize costs.

• Ensuring data security and compliance in cloud environments.

• Managing subscriptions and service levels.

• Integrating cloud assets with existing IT infrastructure​.

Key benefits of effective IT asset management

Strong IT asset management does more than just keep things in order; it also affects costs, compliance, and total performance. When assets are well taken care of, IT stops being reactive and starts planning ahead. 

1. Cost control and optimization

There is less waste when you know exactly what things you have and how they are used. Unexpected renewals, outdated software, and unused gear can all quietly drain budgets. For instance, nearly 50% of installed software and licensed SaaS applications go unused, leading to substantial financial waste. When you maintain visibility into assets, those blind spots disappear, and you can make better choices. 

2. Risk mitigation and compliance

Untracked assets are a liability. They create security risks, compliance gaps, and audit headaches. ITAM provides structure, making sure every device and license is accounted for, regularly updated, and in line with policy. A lack of proper ITAM can lead to substantial costs, including potential fines and revenue losses.

3. Improved productivity and service delivery

When assets are available and functioning as they should, your teams don’t lose time chasing fixes or waiting on replacements. Downtime can cost small businesses up to $427 per minute, emphasizing the need for proactive asset management. This smoothens workflows and lets IT support focus on service quality instead of constant troubleshooting. 

4. Better decision-making through data

Asset data can tell you how long things last, which tools are worth the money, and where resources are being used quickly. ITAM gives you these insights so you can not only deal with problems as they happen, but also plan ahead.

Complete IT asset management lifecycle

Effective IT asset management relies on a clear understanding of the asset lifecycle. Each stage, from planning and procurement to maintenance and retirement, plays a critical role in keeping systems secure, costs under control, and operations running smoothly. Here is how the full lifecycle comes together.

1. Planning and procurement

Planning is the first step in the process, which includes figuring out:

• What assets are needed, 

• how they will be used, and 

• how they fit into the overall IT strategy. 

Strategic asset procurement prevents redundant purchases and ensures each item supports company goals. Consistent purchasing and organized approval processes also set the stage for smoother lifecycle management.

2. Deployment and configuration

Once you’ve procured your assets, whether it's a laptop, a set of mobile devices, or licensed software, the next step is to prepare them for use. That’s what the deployment and configuration stage is all about. Here, you get hardware and software up and running. 

For hardware, you assign devices to the right teams, install necessary applications, apply security settings, and connect everything to internal systems. In terms of software, you ensure proper installation, configure it for the team’s needs, and integrate it into your IT environment. Each asset gets a unique ID, and you log its details, like ownership, location (whether physical or virtual), and key specs such as model, serial number, and warranty, often using IT asset management software.

Managing hardware and software deployment effectively helps businesses eliminate delays, stay compliant with IT policies, and ensure that every asset is primed for maximum value from the start.

3. Maintenance and optimization

The maintenance and optimization stage is where most of an asset’s life is spent, making it a critical part of ITAM. This is when you track performance, apply updates and patches, and ensure everything keeps running smoothly and securely.

Optimization plays a key role here. It helps you identify underused or idle assets, reassign them where they’re needed, and extend their useful life. By shifting from reactive fixes to proactive monitoring, you reduce downtime, avoid surprise costs, and keep your IT environment reliable and efficient.

4. Retirement and disposal

When assets have reached the end of their useful life, they need to be retired safely and responsibly. This includes deleting private information, taking assets out of live inventory, and getting rid of them in a way that follows environmental regulations. 

Proper asset retirement ensures that outdated or unprotected assets are fully removed from the system. This helps keep data safe and lowers risk. Some old assets may be donated or recycled.

Keeping track of the asset lifecycle as a continuous, linked process helps make sure that tech purchases stay in line with company objectives. It gives visibility to a part of the business that works behind the scenes. This makes IT asset management a long-term value driver.

IT asset management (ITAM) best practices for 2025

How businesses handle their IT assets is changing quickly. In 2025, leading IT practices will emphasize leveraging automation and intelligence to efficiently manage growing infrastructure complexity and drive business value. Adopting these practices isn’t just about checking boxes. They’ll help you grow confidently while avoiding costly mistakes.