The Next Generation of IT Asset Management: Insights for 2024

The IT asset management (ITAM) sector is still reeling from the challenges of the pandemic, and it already faces immense pressure to optimise costs, resources, and infrastructure. At the same time, the velocity of enterprise innovation is growing, and ITAM needs to keep pace. As enterprises and managed service providers (MSPs) aim to strengthen their asset management and governance capabilities, a few trends need urgent attention. These include:

1. Prepare to reimagine in-office ITAM needs

In 2020, many organisations faced the inevitable challenge of transitioning to highly flexible working models without an end-to-end, comprehensive technology asset inventory. In 2023, organisations are gearing up to return to office-based operations either fully or partially, but a return to the pre-pandemic normal is unlikely.

Previously homogeneous IT landscapes have transformed into highly mixed environments and will continue to remain so for the near future, despite a return to office-based working. For example, the increased reliance on gig workers during the pandemic will continue to accrue rich dividends for organisations in 2024, necessitating flexible ITAM processes and policies and renewed support from MSPs.

2. Look out for opportunities for reduced spending across the IT estate

Despite severe cost-cutting measures across the technology industry, IT leaders are confident that new cost-saving opportunities remain intact.

On average, IT leaders report that at least a third of their expenditure on desktop software, data centre software, SaaS, and IaaS/PaaS remains under-utilised. In 2024, decision-makers will double down on strategies for lean operations and cloud optimisation tools and processes like FinOps. We can expect a slowdown in hiring and an uptick in automation spending to reduce redundancies and make ITAM more efficient.

3. Anticipate a shift in focus towards SAM

Software asset management or SAM programs are seeing renewed interest and investments in the post-pandemic world, and it will be an essential category for IT asset management leaders in the next few months. SAM programs can unlock millions of dollars in cost savings and cost avoidance as enterprises’ software footprints grow and operations rapidly move to the cloud.

Also, managed service providers (MSPs) will need to harness the power of SAM in 2024 to help enterprises navigate the complex labyrinth of SaaS vendor management, interdependencies and integrations, licensing and SLAs, and infrastructure constraints. Another area where SAM programs will be helpful is in audits and regulatory compliance, as accelerating digital transformation also increases the compliance burden for enterprises.

4. Identify artificial intelligence interventions

As AI technology becomes more sophisticated, it will play an increasing role in the future of asset management. For example, AI can automatically update asset inventories, executing 24/7 real-time asset discovery without human guidance. It can continually monitor asset utilisation patterns to flag anomalies and opportunities. These are relatively low-hanging fruits, and organisations should be able to configure business rules and train AI models for their specific ITAM needs.

Artificial intelligence could play a more strategic part in steering the future of asset management through not only tactical assistance but also proactive insights. For example, AI features in business intelligence combined with process mapping data can help forecast future ITAM requirements and challenges. AI could help run accurate cost-benefit simulations that ensure optimal enterprise asset decisions.

5. Reimagine ITAM as a cross-disciplinary function

As technology becomes hardwired into nearly every enterprise process, asset management will gradually become a collective responsibility, co-owned by cross-disciplinary functions such as IT, human resources, and finance. These teams must work together to optimise the asset inventory for productive end-user experiences, cost savings, and technology efficiency.

This also means that enterprise ITAM leaders must break down the silos within which they traditionally operated and adopt a co-ownership mindset that also includes external vendors and MSPs.

In the last five years, IT asset management has gradually come out of the shadows from being a routine back-office function to an obvious value generator. As emerging technologies like generative AI, the Internet of Things, and immersive experiences add to already complex heterogeneous IT landscapes, ITAM leaders have a challenging task ahead.

There are several critical challenges in IT Asset Management (ITAM) that organisations need to pay attention to:

- Data Privacy: AI in ITAM requires handling large amounts of sensitive data. Ensuring data privacy and compliance with regulations like GDPR is a crucial challenge.

- Complex Environments: Organisations often use a mix of on-premises and cloud-based solutions, making keeping track of assets across various platforms challenging. Poor cloud facilities can pose a challenge. Even though cloud applications reduce some stress associated with ITAM, you still need to ensure appropriate licensing.

- Rapid Changes: Software updates, hardware replacements, and changing user needs mean that IT assets are constantly in flux. Managing IT assets involves many facets of business workflows requiring advanced technologies to meet demands.

- Compliance Risks: Dealing with new environments like cloud, containers, and SaaS and the complex nature of software vendors’ use rights can lead to compliance risks. Failing to manage licenses and compliance properly can lead to costly legal and financial consequences.

- Cost Overruns: Companies may overspend on licenses and underutilise hardware without precise insights into asset usage. Expenses pose a threat as companies may overspend on licenses and underutilise hardware without precise insights into asset usage.

- Skill Gap: Implementing AI in ITAM may require specialised skills and training for staff. Lack of resources on SAM teams is a common challenge.

The above challenges require mitigation with careful planning, training, and appropriate AI tools.

They must keep up the pace of innovation and prepare their workforce for near-constant change while managing risk, controlling costs, staying sustainable, and strengthening security. To discuss these insights and other aspects of IT asset management with me, please email me at Arvind@AM-PMAssociates.com.