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IT Asset Management, or ITAM, is now a familiar concept to organizations worldwide. It is widely acknowledged that a good ITAM system can bring numerous benefits, including improved asset lifecycle management and increased efficiency. However, if you think that ITAM is solely about these benefits, you are missing out on one of its most significant advantages – IT cost optimization.

When implementing a new cost-effective strategy, it is common to incur initial costs. But the reason for these costs is that the strategy can ultimately save more money than it costs. This is where ITAM comes in – as an effective cost optimization system that doesn’t require any upfront investment to save money.

To implement a cost-effective IT strategy, it’s important to recognize that initial costs may be required to ultimately save money. This is where IT Asset Management (ITAM) can be particularly useful. By adopting ITAM best practices, you can optimize your IT costs and requirements, and save money in the long run. Here are some simple steps to get started:

  1. Plan the purchase of all your IT assets.
  2. Keep an active lifecycle track of every IT asset purchased.
  3. Record the efficiency of the IT assets put in use.
  4. Identify the Total Cost of Ownership of IT assets.
  5. Create an analytical dataset that will provide insight into your IT environment.
  6. Look for double purchases and get rid of unnecessary ones, also implement methods to avoid such situations in the future.

By employing an effective ITAM system in your organization, you can combine all of these steps into a cohesive approach to cost optimization. If you find it challenging to monitor every single IT asset, an efficient ITAM tool like Teqtivity can help. It can take care of all your IT asset requirements, from tracking assignments to identifying when upgrades or replacements are needed.

Adopting an ITAM system is an excellent way to optimize your IT costs and requirements. By keeping track of your IT assets and using data analysis to identify areas for improvement, you can save money and streamline your operations.

Let us take a deeper dive into the cost optimization benefit of an effective ITAM tool.

How an effective ITAM tool can help in IT cost optimization

Not to be confused with cost reduction, cost optimization refers to using your resources in the best possible way to get the work done more efficiently and produce better results without requiring additional financial resources. It is a long-term solution that is more reliable and efficient than cost reduction, which is usually a short-term solution.

With IT becoming an essential part of any business, optimizing or reducing costs in the IT department can lead to overall cost optimization for the entire organization. An ITAM tool can automatically track IT assets, including hardware, software, and licenses, providing better insights and control over the IT environment. This enables you to make data-driven decisions and identify areas for cost optimization, ultimately leading to a more efficient and cost-effective IT operation.

To put it simply, IT cost optimization involves implementing strategies or methods to ensure that IT operations are effectively carried out within the allocated budget without exceeding it.

In today’s global scenario, IT has become an essential part of any business, regardless of technical expertise. Therefore, optimizing or reducing costs in the IT department can lead to overall cost optimization for the entire organization.

By employing an ITAM tool, you can eliminate the guesswork involved in managing your IT infrastructure. An ITAM tool can automatically track and manage all IT assets, providing detailed insights and control over the IT environment. This can help you make data-driven decisions, identify areas for cost optimization, and ultimately achieve a more efficient and cost-effective IT operation.

Here’s to give you a better understanding of how an ITAM tool like Teqtivity can help in your IT cost optimization:

Remove redundancy

Active and close monitoring of asset usage, licensing, and current life status can identify outdated technology, unused or unwanted software licenses, and accidental cases of double purchases. Rectifying these issues can help avoid unnecessary expenses and optimize IT costs.

Manage your spending

By conducting an active and accurate cycle count, and keeping track of which asset is assigned to whom, as well as updates on new hires and terminations, you can determine where and how much to spend. Without an organized method of tracking asset usage, there is a risk of overspending on assets by purchasing more than what is needed. An ITAM tool can also assist in identifying asset damage trends, which in turn can help with planning and budgeting.

Stay ahead of Security Risks

With many Cyberattacks on the rise, data breaches can be disastrous for a company. Therefore, cybercrime prevention is a major responsibility of the IT department. To protect your IT infrastructure, it is crucial to have visibility into all the technological assets connected to your network. This knowledge can help you spot security flaws or vulnerabilities that need to be fixed, and prevent potential breaches. By having a comprehensive understanding of your hardware and software assets, you can proactively identify and address security risks before they become a major issue.

Final Thoughts

In summary, implementing an efficient ITAM tool like Teqtivity can bring numerous benefits to an organization. It not only helps to effectively manage IT assets and closely monitor their lifecycle but also enables cost optimization in IT operations. By staying ahead of security risks, managing spending, and removing redundancy, organizations can streamline their IT operations and achieve their business goals more efficiently.