What is IT Asset Management (ITAM)?

IT asset management (ITAM) is the practice of tracking and managing an organization's IT assets, including hardware, software, cloud resources and licenses, from acquisition through retirement so that their ownership, cost, risk and use are known and controlled.

What is IT asset management?

An IT asset is anything the organization owns, rents or licenses that supports its technology, such as laptops, servers, software subscriptions and cloud accounts. ITAM keeps one record of each asset: what it is, who owns it, what it cost, what its license allows and when it is due for renewal or replacement. ISO/IEC 19770-5:2015, the overview and vocabulary part of the ISO/IEC 19770 series, defines the terms for both IT asset management and software asset management (SAM) (ISO/IEC 19770-5:2015 on SmartSuite's framework page).

What are the stages of the IT asset lifecycle?

Stage	What happens	What the record shows
Acquire	The asset is requested, approved, purchased or subscribed to	Vendor, purchase details, contract and cost
Deploy	The asset is configured and assigned to a person, team or location	Owner, location and status
Use and maintain	The asset is used, repaired, patched or reassigned	Usage, condition, repairs and transfers
Renew or refresh	Licenses are renewed, or aging hardware is planned for replacement	Renewal dates, license allocations and age
Retire	The asset is removed from service, returned or disposed of	Disposal date and final status

What does ISO/IEC 19770-1 require?

ISO/IEC 19770-1:2017 specifies the requirements for an IT asset management system (ITAMS). ISO and IEC published its third edition on 7 December 2017, replacing the 2012 edition, and Amendment 1:2024 applies. The standard adds requirements to ISO 55001:2014 for IT assets, and conformance to it does not imply conformance to ISO 55001:2014. Its introduction names five areas that need control: software changes and distribution, audit trails, licensing compliance, mixed ownership such as cloud and bring-your-own-device, and reconciliation with financial systems. Annex A lists 15 ITAM process areas, grouped in Annex B into three optional tiers: trustworthy data, life cycle integration and optimization (ISO/IEC 19770-1:2017 on SmartSuite's framework page).

How is ITAM different from a CMDB?

ITAM answers "what do we own and what does it cost." A configuration management database (CMDB) answers "what depends on what," by recording configuration items and the relationships between them. Many teams link an asset to its configuration item so both views stay consistent.

Why does IT asset management matter?

• Licensing compliance. ISO/IEC 19770-1 requires controls over underlicensing, overlicensing and compliance with licensing terms.
• Audit evidence. The standard requires traceability of ownership and responsibility and audit trails of authorizations, so an auditor can see who held an asset and who approved a change.
• Cost control. A current record of what is owned and in use shows which licenses and devices are idle before they are renewed or replaced.

Related terms

• CMDB
• Configuration management
• Hardware and software inventory tracking
• License tracking and renewal governance
• Asset refresh planning
• IT cost optimization with asset visibility

In SmartSuite

SmartSuite's IT Asset Management product tracks IT assets across their lifecycle, and the IT asset management solution covers inventory, ownership, lifecycle and cost for hardware, software and licenses.

Frequently asked questions

What is the difference between ITAM and software asset management?

ITAM covers every IT asset, including hardware, cloud resources and software. Software asset management (SAM) is the part that deals with software: what is installed, what it is licensed for and whether the two match. ISO/IEC 19770-5:2015 defines the shared vocabulary for both.

Can an organization be certified to ISO/IEC 19770-1?

Yes. ISO/IEC 19770-1:2017 sets requirements for an IT asset management system, and an organization can be certified against it by an accredited body, although certification is voluntary. Teams that do not need a certificate can still use the standard's requirements and process areas as a framework for their own program.

Who owns IT asset management in an organization?

IT usually runs the process, while finance, procurement and business units share ownership of the assets they pay for and use. ISO/IEC 19770-1 expects ownership and responsibility to be traceable for every asset and recognizes mixed responsibilities, so the record should name one accountable owner for each asset.

Conclusion

ITAM gives IT, finance and audit one answer to what the organization owns, who holds it and what it costs. Start with an accurate inventory of hardware and software, name an owner for every asset, and add lifecycle and license controls as the record proves reliable.