IT asset management (ITAM) is the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. Assets include all elements of software and hardware that are found in the business environment.

IT asset management (also called IT inventory management) is an important part of an organization's strategy. It usually involves gathering detailed hardware and software inventory information which is then used to make decisions about hardware and software purchases and redistribution. IT inventory management helps organizations manage their systems more effectively and saves time and money by eliminating unnecessary purchases and wasted resources.

It is vital that a business controls it's assets both hardware, software and licensing.

With a quality Software Asset Management system in place you can control the risks associated with improper licensing. Good licensing practices help you to minimise risks and keep your software and employees running as they should be.

Hardware Inventory Management is necessary for asset cycle, change management and asset tracking.

Improved security and preparedness

Disorganized, outdated software that lacks the proper security updates can leave you wide open for viruses and other security breaches. With a good software asset management plan in place, you will always have the latest applications with the most recent security updates and service packs.

Minimizing legal risks

Properly implementing Software Asset Management helps limit your legal and financial exposure if problems with your software licenses arise. Proactively maintaining a solid Software Asset Management program can help you prepare for external licensing audits and avoid legal issues and associated financial penalties. Becoming compliant, and staying that way, also helps eliminate the potential damage to your reputation that could arise from a legal dispute.