Breaking down ITAM: Hardware and software asset management

What's the first thing that pops into your head when you think of the term IT assets? Laptops, phones, other electronic devices maybe? Well, that's right. Those are your company's IT assets. But what about the software applications installed onto those devices, the licenses purchased by the company, which are ultimately the tools the end-user uses to do their work? They are also considered to be IT assets. In a way, it's similar to a band making music. The instruments can be considered the hardware, while the artists' musical mind or music theory at play can be seen as the software.

Looking at these two examples, there is a clear divide between two types of IT assets: hardware assets and software assets. Let's look a bit more into each category and its management.

Hardware asset management:

Hardware asset management refers to the tracking and managing of the physical or tangible aspects of IT assets, i.e. laptops, computers, keyboards, and more. Hardware asset management covers the asset life cycle process for hardware assets, from procurement up until disposal or retirement.

The main goal of hardware asset management is to hold account of all the hardware assets in an organisation's IT infrastructure and provide accurate visibility into the organisation's assets.

Hardware asset management also keeps a close tab on all hardware details and specifications. This information is needed to assess and revise IT asset resource utilisation and make informed budgeting decisions as well.

Software asset management:

Software asset management, similar to hardware asset management, refers to the tracking and managing of intangible software assets such as software applications, product licenses and versions, contracts, and more.

Software asset management is generally carried out to maximise an organisation's productivity, through the end-users. And also, to ensure that an organisation stays compliant and helps with license management.

Keeping track of license renewal dates or expiry periods can help companies cut down on unnecessary costs they might have to pay in the form of fines for non-compliance or unused software licenses.

These two sub categories make up what are considered to be IT assets. Using an IT asset management platform, organisations can look to easily implement and accomplish the goals of both hardware and software asset management processes.