IT Hardware Asset Management: Risks, Best Practices, and Tips

Hardware asset management is a basic procedure for all IT departments. However, tracking and maintenance of hardware equipment can be difficult and time-consuming. Many companies are struggling not only to allocate hardware assets and maintain maintenance records but also to grasp current hardware inventory.

Hardware is essentially a physical device or internal component used in all areas of the business. Unlike digital software applications that can be digitally tracked and monitored with automated software asset management solutions, hardware requires more manual procedures to maintain accurate inventory. In this article, we are going to explore IT Hardware asset management, its risks, and best practices for you. Let's get started:

1What is IT Hardware Asset Management?

Hardware asset management is a subset of IT asset management (ITAM). Hardware Asset Management covers the complete process of tracking, monitoring, and maintaining hardware devices and equipment throughout the lifecycle. Hardware refers to physical technical assets such as devices and computer components used to process, transfer, and store information. Hardware is used in almost all areas of the business, but HAM procedures are performed by IT departments. IT hardware asset management has many tasks, most notably record management, inventory management, maintenance, upgrade, and asset utilization optimization.

2What are the different types of IT hardware assets?

IT hardware assets are physical components of computer systems that can be touched or handled. These assets include everything from computers and phones we use, to servers that store data, to printers and scanners. Dive into different types of IT hardware assets and understand their importance in the enterprise.

1End-user device

A personal computing tool used by individuals within an organization. It Includes laptops, desktops, and mobile devices. These devices are essential for day-to-day operations and allow employees to access, create, and manage digital information.

2Network Infrastructure

This category includes hardware that forms the backbone of an organization's IT network. This mainly involves switches that connect devices in the network, routers that route data between networks, and firewalls that protect the network from unauthorized access.

3Data center components

Heavy-duty machines that support your organization are computing capabilities. Servers process and store critical data, storage systems such as SANs (storage area networks) provide large data storage locations, and backup devices ensure data redundancy and recovery.

4Peripherals

Heavy-duty machines that support your organization are computing capabilities. Servers process and store critical data, storage systems such as SANs (storage area networks) provide large data storage locations, and backup devices ensure data redundancy and recovery.

3Why do we need hardware asset management?

Hardware asset management directly affects business factors such as productivity, financial stability, and security. By managing hardware assets properly, organizations can turn resources to where they need them most without making full use of their investments or being overlooked. This improves efficiency and ensures response to changing markets.

HAM also extends the life of assets through proper maintenance, delays costly exchanges, and maximizes the value gained from all equipment. HAM helps reduce expenses associated with unexpected repairs, downtime, and lack of utilization of assets.

Appropriate hardware asset management streamlines processes and reduces hardware problems and bottlenecks while allowing teams to do more work. It also improves asset visibility and security, enabling you to keep an eye on asset performance and users.

4What are the risks of hardware asset management?

Here are some of the most common risks facing companies through the hardware asset management process:

Financial Waste:

Inefficient hardware asset management (HAM) can lead to financial losses for organizations. This occurs by purchasing too much or retaining outdated equipment, not only binding capital but also increasing maintenance costs.

Security Threats:

Untracked or poorly maintained hardware can pose serious security risks. Without periodic updates and maintenance, these devices are more susceptible to cyberattacks and can lead to data leaks and system breaches.

Compliance Issues:

Failure to concede with relevant regulations and standards may result in significant legal and economic consequences. Improper HAM can lead to non-compliance as it becomes difficult to ensure that all hardware meets the required guidelines.

5IT hardware asset management best practices

IT hardware asset management best practices reduce costs, improve software compliance, enhance IT security, and improve customer service. In addition, we will enhance the management of IT assets, improve cross-sectoral communication, reduce governance risks, and improve security. Asset management for it hardware begins by determining important assets. Here the best practices you should follow:

Act aggressively to avoid damage

Consistently following IT management assets procedures, you can prepare for audits and other inventory inspections, avoiding last-minute time and confusion.

Prepare for any situation with a meticulous ITAM plan rather than trying to respond to a specific situation. By doing so, it is possible to avoid rumors and financial impacts from deficiencies and non-existent asset management strategies.

Collaboration and Communication

Other business departments will also participate in the development of the ITAM process. This will promote continuous development and improvement of the entire process as the entire organization develops.

In the long run, ITAM will support disaster recovery preparedness, improve budgeting, and provide strategic decision-making. Set up feedback mechanisms to plan long-term improvements so that we can respond to process evolution and change.

Run a Test

Start with a test run. Do not try to handle everything at the same time. Launching a new system at once does not work with ITAM. Therefore, select a small test, work on it, test it, and strengthen it before expanding to other areas.

Please remember that the introduction of ITAM is a big task, and it is better to take one step at a time. Decide the starting point and make detailed plans. Do not try to process everything at once.

Automation Deployment

Automation is important in IT Hardware asset management. Establish automation in every way.
Automate as many stages of your process as possible, rather than manually managing your assets using outdated Excel spreadsheets. Automated employee onboarding and offboarding, configurable compliance reports, and file repositories.

Avoid over-deployment

Pay attention to software licenses. Track continuously and eliminate excessive deployments. Many companies are subject to fines when auditing due to insufficient proof of rights. Keep all license agreements and receipts and track compliance properly.

In ITAM, it is good to stick to the lifecycle method through trial and error.

6Differences between software and hardware asset management

Both hardware asset management (HAM) and software asset management (SAM) are closely related areas that deal with the maintenance of IT assets within a company. Here we are going to explain the difference between them:

Hardware asset management (HAM)

Hardware asset management (HAM) is one component of IT asset management. HAM allows companies to monitor and manage their entire IT assets. It manages and monitors the physical components of all systems of a company. However, for successful hardware asset management, the entire process must be compatible with other IT processes.

IT Hardware management provides transparency to assets by improving IT hardware. For an organization to make the most of its assets, software and hardware processes must be properly managed. There must be a process of managing assets from purchase request to disposal.

Software Asset Management (SAM)

In Software Asset Management (SAM), we monitor and manage software licenses and inventories within an organization. SAM also tracks usage, ensures compliance with vendors, and optimizes license costs. It creates accurate records of all software applications installed in the computing ecosystem to understand where the software is being used and to report detailed analysis results. By analyzing compared to plan expected usage, organizations can optimize consumption of application and OS entertainment by matching actual usage with expected usage and entertainment.