What Is ServiceNow IT Asset Management?
Information Technology Asset Management (ITAM) is a set of business practices and tools for optimally supporting lifecycle management of IT assets and strategic planning for the IT environment. The goal of ITAM is to help organizations manage their hardware and software inventory more effectively and avoid unnecessary asset purchases. ITAM encompasses:
Contract/SLA (Service Level Agreement) management
Asset governance control and compliance
Asset audit management
Why businesses need ITAM
The research firm Gartner has estimated that global spending on enterprise application software will hit $201 billion by 2019. Although advances in cloud-based technology are changing this industry, an organization’s ability to manage these assets is not going away. To the contrary, modern application software is fundamentally changing the definition of a technology asset, requiring ITAM leaders to step up their game:
Businesses will need mature ITAM practices to extract maximum value from their software assets. However, Gartner has estimated that by 2020, only 25% of businesses will be satisfied with the value they’re deriving from their software assets, primarily because they have not created proper alignment between the assets and their pre-purchase expectations for these assets.
As businesses shift to cloud-based software solutions, businesses will increasingly risk paying for unused and underutilized software as a result of having inadequate ITAM controls in place. Gartner has predicted that by 2020, 80% of vendors will offer subscription-based business models, which are common with cloud-based software. Continuous and rigorous ITAM monitoring will be essential to combat over-provisioning of software, as well as lack of visibility and control, according to Gartner’s 2018 analysis.
Individual business units are increasingly making purchases of cloud-based software that are neither sanctioned by IT nor known to IT. Gartner reported in 2016 that these “shadow IT” assets are driving increased risks of data breaches and financial liabilities, and recommended that businesses use ITAM to implement coordinated, consistent data security measures.
A 2016 Gartner study found that organizations can cut spending on software assets by as much as 30% by implementing the following ITAM best practices:
Looking for savings in how software is configured
Identifying all opportunities to recycle software licenses instead of making new purchases
Using an ITAM platform to automate, accelerate, and improve manual processes
Why businesses choose ServiceNow for ITAM
ServiceNow’s ITAM platform provides a single system of record upon which to identify opportunities to reduce costs, eliminate wasted resources, improve compliance, mitigate security risks, and drive standardization. ITAM also is nested with the greater ServiceNow ecosystem, allowing it to integrate optimally with:
ServiceNow IT Service Management (ITSM)
ServiceNow IT Business Management (ITBM)
ServiceNow IT Asset Repository and Configuration Management Database (CMDB)
IT governance, risk, and compliance management
ServiceNow ITAM was reviewed by the independent Silicon Valley B2B review service FinancesOnline. ServiceNow ITAM received a near-perfect score of 9.7 out of 10, making it FinancesOnline’s No. 1 top-ranked ITAM software product. FinancesOnline’s reviewers identified the following as key benefits of ServiceNow ITAM:
Helps companies maximize the use of their resources and completely exhaust a resource until its expiration
Helps companies maximize replacements of resources that are no longer functioning
Helps businesses automate the process of establishing relationships among resources
Informs IT teams where an asset is in its lifecycle
Centralizes asset tracking
Enables IT teams to renew contracts and replace hardware at the exact moment they’re needed
Helps prevent an asset’s serviceability needs from causing workflow problems
Where ITAM is headed
Businesses’ growing need to manage the lifecycle of assets and ensure compliance readiness will drive the growth of the ITAM market in the coming years. The analyst firms MarketsandMarkets, Research and Markets, and ReportLinker have all estimated that software asset management is expected to grow into a $2.3 billion industry by 2022, at a compound annual growth rate of 14.8%.