You can’t monitor, protect, or fix what you don’t know. That simple concept helps explain why IT inventory management is the cornerstone of effective IT and security ops. However, given the highly distributed and dynamic nature of modern networks, maintaining an up-to-date inventory can be challenging. Modern IT assets are everywhere, from corporate data centers to third-party clouds to coffee shops where remote workers stop for a snack.
Fortunately, applying the right mix of strategy, process, and tools can help IT departments and MSPs create and maintain comprehensive IT inventories that streamline operations and reduce business risk. In this article, we’ll explore IT inventory management in depth, including key concepts, software, and nine best practices to help teams get it right.
What is IT inventory management?
IT inventory management is the practice of maintaining a centralized repository of IT assets with asset lifecycle data such as serial numbers, software versions, licenses, and warranties.
Organizations use IT inventory management to organize and optimize hardware and software assets in the IT asset lifecycle. A comprehensive IT inventory management strategy accounts for IT assets across the four categories in the table below.
| IT asset category | Description | Examples |
|---|---|---|
| Hardware | Physical IT devices | • Computers • Network switches • Blade servers • Mobile phones • Printers • Uninterruptible power supplies (UPSes) • IP cameras |
| Software | Intangible digital assets | • Operating systems • Applications • Software licenses |
| Cloud | Resources hosted in a cloud platform | • Virtual private servers (e.g., AWS EC2 instances) • SaaS apps • Identity services |
| Data | Information, typically stored in digital formats | • Databases • Reports • Files |
Unpacking IT inventory management terminology
If you’re new to the IT inventory management world, sorting through all the acronyms and concepts that are “similar but different” can be challenging. With that in mind, let’s compare some common terms to help reduce the acronym overload.
IT inventory management vs. IT asset management
IT asset management (ITAM) is an ITIL practice that can help teams structure their IT inventory management strategy.
IT inventory management is a generic term that describes the management of tangible and intangible IT components. The term does not typically imply a specific framework or methodology. ITAM is an Information Technology Information Library v4 (ITILv4) practice. Many IT pros view ITIL v4 as a source of truth for ITAM and IT service management (ITSM) best practices.
CI vs. asset
Configuration items (CIs) and IT assets have significant overlap, with the primary difference being that one focuses on management (CIs) while the other focuses on value (asset).
A configuration item (CI) is a component that requires management as part of delivering an IT service. An IT asset is any tangible or intangible item of value that is part of IT infrastructure or service delivery.
Many components are both IT assets and CIs. For example, a blade server is both a valuable IT asset and a CI that can be tracked in a CMDB. Similarly, a license for a mission-critical database server can be both an asset and a CI. Conversely, a software license for endpoint software that isn’t directly involved in service delivery may be a valuable asset but isn’t typically considered a CI.
CMDB vs. ITAM software
CMDB software tracks CIs while ITAM software tracks IT assets.
CIs are typically tracked in a configuration management database (CMDB). IT assets are typically tracked using ITAM software. A single software platform may provide both CMDB and ITAM capabilities in practice.
ITAM vs. ITSM
ITAM is a practice focused on IT asset management within the broader ITSM domain.
ITIL v4 ITSM practices cover multiple different subcategories of IT service management. For example, the monitoring and event management practice relates to topics such as endpoint monitoring and the event lifecycle. IT asset management is another ITSM practice that deals with IT inventory management concepts.
Why is IT inventory management important?
An IT inventory is a key enabler of many effective IT service management practices. A comprehensive inventory gives teams visibility over all their assets, a centralized source of truth for asset data, and granular information about each component. With that in mind, let’s take a look at four business benefits of IT inventory management.
Makes IT more effective
IT inventory management simplifies IT operations by providing a structured and centralized approach to asset management. As a result, inventory management can help strengthen other aspects of IT operations. Configuration management and the benefits of tying CMDB and ITAM capabilities together are a textbook example, but there are many more cases where inventory management makes IT more efficient.
For example, deploying and implementing endpoint detection and response (EDR) software across all endpoints is significantly easier when IT has a complete device inventory. Similarly, network troubleshooting goes faster when an engineer can quickly drill down to get detailed information on any asset in their inventory. From a strategic perspective, an IT inventory is essential for planning activities such as hardware refreshes and license renewals.
Enables cost optimization
An IT inventory that includes license, warranty, and other asset lifecycle data can significantly reduce costs. For example, a recent report1 indicated that almost half of software licenses go unused. An IT inventory can provide organizations with information they can use to track available licenses and compare it to utilization data to reduce waste and detect if they are at risk of overage penalties.
The table below breaks down 3 common cost optimization use cases IT inventory management enables.
| Use case | How IT inventory management helps |
|---|---|
| Software license management | Provides a central repository of licenses, utilization, and expiration. |
| Hardware refresh planning | Tracks hardware asset data such as warranty and installation date |
| Capacity management | Gives teams visibility into current capacity to avoid under or over-provisioning resources |
Supports cybersecurity and GRC programs
Many popular cybersecurity frameworks and compliance requirements depend on a robust IT inventory. The NIST Cybersecurity Framework (CSF) “identify” function is an excellent example. The CSF’s identify function focuses on ensuring cybersecurity risks are understood and includes a dedicated “asset management” category with objectives such as “Inventories of hardware managed by the organization are maintained” (ID.AM-01) and “Inventories of software, services, and systems managed by the organization are maintained” (ID.AM-02)2.
The reason for the emphasis on IT inventories is simple: security begins with a scope and blindspots are risky. If you’re unaware an asset exists, it’s more likely to be missed as security policies are enforced. That cybersecurity truth explains why IT inventory management is a key aspect of cybersecurity and governance, risk, and compliance (GRC) programs.
What is IT inventory management software?
IT inventory management software is a category of software tools that help organizations catalog, track, and manage IT assets throughout the asset lifecycle.
In practice, software with labels such as ITAM, CMDB, and network management system (NMS) can provide IT inventory management functionality. The basic functionality to look for in IT inventory management software is:
- Asset repository– A detailed asset repository that centralizes information about an organization’s IT assets is the bread and butter of inventory management.
- Asset lifecycle management– Tracking assets from acquisition to disposal helps teams improve visibility and maintain an up-to-date inventory.
- License management- Tracking, renewing, and optimizing software licenses is an important IT inventory management capability.
- Integration capabilities– Integrating an IT inventory management platform with other tools can reduce silos and simplify IT ops. For example, an integration with EDR software can help quantify which endpoints are missing protection.
- Reporting and analytics– IT inventory management software should provide reporting and analytics capabilities so teams can make data-driven decisions about their assets.
IT inventory software for MSPs
Managed service providers (MSPs) face several unique asset management challenges. For example, corporate IT teams typically only have to worry about inventorying assets for a single organization. However, MSPs need to account for assets distributed across all of their clients, often while providing clients some level of visibility as well.
MSPs in the market for IT inventory software should look for solutions that include capabilities such as multi-tenant or multi-client support and remote monitoring and management (RMM) integrations.
While MSPs face additional inventory complexity, they also have additional upside opportunities.
MSPs that get inventory and asset management right can streamline operations and grow revenue.
9 Best practices for IT inventory management
Now that we’ve covered what IT inventory management is, let’s jump into 9 best practices that can help teams implement it effectively.
- Start where you are– There are different IT and MSP maturity levels and no one-size-fits-all tactics that will work for everyone. If you’re just getting started with inventory management, focus on the basics like discovery. If you’re part of a mature organization, you have the luxury of focusing more energy on refining your strategy.
- Aim to inventory “everything”– If you have to choose between going “broad” (finding many assets) or “deep” (getting many details on a few assets) early on, it’s typically better to go broad. The more complete your IT inventory is, the better positioned you’ll be to manage and secure dispersed assets.
- Automate discovery- In some cases — such as offline devices — manual inventory entries are necessary. However, manual processes are a recipe for stale and incomplete data. Automated network device discovery can help keep your inventory up-to-date and reduce maintenance workload.
- Categorize IT assets– IT assets should be categorized by type (e.g., hardware, software, data, cloud, etc.) to streamline reporting, searching, and access controls. Where practical, include additional classifications and metadata such as data sensitivity, cost center, and location to further enrich the data in the inventory system.
- Record key asset roles- Asset roles such as asset owner (accountable for the asset), asset custodian (responsible for the asset), and license manager (responsible for license management) help make asset roles and responsibilities clear.
- Begin monitoring assets early– Monitoring assets helps IT ensure they’re in a healthy state and take corrective action if they’re not. In general, aim to begin monitoring assets as soon as practical once they are provisioned or discovered.
- Track license utilization– License optimization is one of the areas where organizations can achieve the most bang for their buck from IT inventory management. Teams should track licenses available and utilized to identify savings opportunities.
- Account for SaaS apps and shadow IT– SaaS apps are easy for anyone to provision. That also makes them a common source of shadow IT and governance blindspots. Teams should ensure that their IT inventory management strategy accounts for detecting SaaS usage and addressing shadow IT.
- Address all stages of the IT asset lifecycle– It’s easy to focus on the operational portions of the IT asset lifecycle because that’s where an asset spends most of its useful life. Organizations should account for each stage of the IT asset lifecycle — planning, acquisition, deployment, maintenance, and disposal — to get the most out of their IT inventory management strategy.
How Auvik enables IT inventory management
Auvik Network Management helps IT and MSPs automate many IT inventory management tasks including asset discovery, creating an inventory, and lifecycle management. Auvik Network Management even automates network asset documentation so teams can track exactly what’s connected to their network in real time. Additionally, Auvik SaaS Management enables teams to discover, inventory, and manage their SaaS ecosystems to help provide SaaS visibility.
If you’d like to try Auvik for yourself, sign up for a free (no credit card required) trial today!
1 https://www.techrepublic.com/article/half-software-licenses-unused/
