Many small and mid-sized IT teams have a lot on their plate. They juggle small budgets, capacity constraints, security gaps, compliance, company policy, artificial intelligence (AI), and more. Surprisingly, there is one part of IT that can support all the abovementioned challenges. It has been here for many years, and many IT professionals have raised awareness of its importance. However, despite all efforts and my personal experiences, IT asset management (ITAM) has been widely neglected.
Real-World IT Asset Management
When I visited an IT service management (ITSM) event in the UK this year, I spoke with IT managers and technicians from local companies. One thing caught me by surprise when I asked what I’d call the million-dollar question: “How do you track all of your assets, such as laptops, monitors, mobile phones, or even software?” Plenty of people blushed and were hesitant to answer: “We still track assets in spreadsheets.”
I realized that ITAM still isn’t a priority for many organizations. If ITAM were a priority, it would change many things for the better, because IT could resolve the tough challenges they face nowadays, such as security gaps, compliance, HR processes, and even tight IT budgets.
An ITAM Tool Will Fix This?
Unfortunately, getting an ITAM tool is not the first step. IT should first instill a so-called ITAM mindset to shift away from a spreadsheet mindset. It’s like any area of your life. When companies offer you a great tool or solution for your issues, it won’t be solved without effort. It’s entirely up to IT to manage, be consistent and maintain discipline to properly manage the entire IT asset lifecycle.
This article covers why spreadsheets aren’t a good solution for IT asset management. You’ll read examples from the IT world based on genuine experiences in the areas where ITAM can help IT teams to finally resolve the million-dollar question that nobody wants to answer – How do you track your IT assets?
The Spreadsheet Problem Still Holding IT Back
One IT manager in the US had 1050 items in his large Microsoft Excel asset list. Due to sorting errors, the file became corrupted, and everything was lost. They also had issues with the handover process for tools, devices, and vehicles. They also struggled with the loss of expensive batteries. Imagine how much money has been wasted.
The point here is that a proper ITAM approach can solve all these issues and reduce not only costs, but also the amount of grey hair on your head.
What ITAM Actually Solves
Let’s dive deeper into why the need for ITAM is so urgent with five real examples:
Security and Visibility: The Foundation Layer
You can’t secure what you can’t see. This motto indicates that security is surprisingly the secondary issue for IT. The first and foremost is visibility over all hardware and software. We talk about access cards, contracts, licenses, notebooks, phones, or, in the case above, expensive batteries. Even smaller companies can have hundreds or thousands of these assets. ITAM tracks it all; you see what you have, where it is and who owns it. The most important fact is that you can see it in real time through an audit log. You see that James from IT made changes to a certain server. That’s something spreadsheets can’t do unless you do it manually.
Compliance Becomes Easier When ITAM Is Mature
Your company can require a specific certification, such as ISO 27001, Cyber Essentials or NIS2. One Australian company decided to obtain ISO 27001 certification, but lacked the necessary ITAM capabilities. ISO 27001 requires the identification of assets, assignment of ownership, valuation based on business criticality, and continuous monitoring with an accurate audit log. If you manage assets in the right tool, all those issues are under control. Did the Australian company obtain ISO 27001? Yes, they did, but without optimized ITAM, they probably wouldn’t.
Transforming Onboarding and Offboarding Processes
An IT manager at a large retail chain operating across several European countries had issues with onboarding and offboarding. With growing hardware and staff numbers, spreadsheets were no longer good enough. An employee would often come asking for a new laptop. The technician forgot to update the hardware owner during the handover, and it was no longer clear where the asset was or with whom. With proper asset and handover protocol management, one person managed to deal with 45 new hires in 60 minutes. That’s a huge time saver.
Smarter IT Budgeting Through Asset Intelligence
One IT manager in Czechia planned their budget. They needed detailed statistics to predict exactly which computers will need replacement and when. He had been relying on spreadsheets that simply couldn’t keep up anymore. ITAM reports gave him a clear overview of whether buying or leasing equipment makes more sense. Such reports can warn of expiring warranties and save hundreds of thousands of dollars on equipment.
This is also where cooperation with other departments begins. For example, when HR requests a new employee onboarding, they already know what hardware to allocate – based on real data, not guesses.
Why ITAM Is Essential for AI and Automation
AI is increasingly relevant across all IT disciplines, and ITAM is no exception. But without data quality, AI is practically useless. An IT manager in Czechia carefully records all their assets, along with relevant data such as the date of acquisition, the supplier, and the warranty end date, automatically synchronized from Dell or Lenovo portals. From these records, a report is generated that maps assets whose warranties expire in the next 30 days. This report is then available to technicians daily so they can respond in a timely and effective way. Therefore, trustworthy data about your ITAM assets is the basis and guarantee of success in developing AI and more optimized processes.
Conclusion: ITAM as a Strategic Enabler, Not a Back-Office Task
Overall, ITAM quietly plays a critical role in IT, yet its full potential often still waits for prime time. From budgets to security, it’s crucial to adopt an ITAM mindset, establish the right processes and use the right tools for better visibility and calmer nights.
ITAM FAQs
ITAM is the practice of tracking, managing, and optimizing the entire lifecycle of IT assets, including hardware, software, licenses, and related equipment. Effective ITAM helps organizations improve visibility, reduce costs, strengthen security, and support better business decisions.
Many organizations still view ITAM as an administrative task rather than a strategic capability. As a result, they continue relying on spreadsheets or manual processes instead of implementing disciplined asset management practices that improve security, compliance, and operational efficiency.
Spreadsheets can quickly become outdated, are prone to human error, offer limited audit capabilities, and provide little real-time visibility. As organizations grow, manual tracking makes it difficult to know what assets exist, where they are located, who owns them, and when they need replacing.
No. Technology alone is not enough. Successful ITAM requires an organizational mindset that emphasizes accurate data, consistent processes, regular maintenance, and disciplined lifecycle management. An ITAM tool supports these practices but cannot replace them.
ITAM provides complete visibility into hardware and software assets, making it easier to identify unauthorized devices, track ownership, monitor changes, and ensure systems remain properly maintained. You cannot effectively secure assets you cannot accurately identify and manage.
A mature ITAM practice helps organizations maintain accurate asset inventories, assign ownership, track business-critical systems, and generate audit trails. These capabilities support compliance with frameworks and standards such as ISO 27001, Cyber Essentials, and NIS2.
ITAM streamlines onboarding and offboarding by ensuring devices are available, assigned correctly, tracked throughout their lifecycle, and recovered when employees leave. Accurate asset records reduce delays, prevent equipment loss, and improve the employee experience.
ITAM provides detailed reporting on asset age, warranties, lifecycle status, utilization, and replacement schedules. These insights help IT leaders make better purchasing decisions, forecast budgets more accurately, and avoid unnecessary hardware or software costs.
Yes. HR, finance, procurement, security, and IT all benefit from accurate asset information. For example, HR can initiate onboarding with confidence that the required equipment is available, while finance can use lifecycle data to support budgeting and investment planning.
AI relies on accurate, consistent, and complete data. Well-maintained ITAM records allow AI to generate meaningful insights, automate reporting, identify lifecycle risks, predict warranty expirations, and support more intelligent operational decisions.
ITAM can provide valuable information such as:
Upcoming warranty expirations
Asset utilization
Replacement forecasts
Software license usage
Ownership history
Supplier information
Maintenance trends
These insights help organizations reduce waste and improve planning.
An ITAM mindset means treating asset management as an ongoing operational discipline rather than a one-time inventory exercise. It focuses on maintaining accurate records, following standardized processes, and continually improving data quality throughout the asset lifecycle.
Accurate asset records help prevent lost devices, unsupported hardware, expired warranties, license compliance issues, and ownership confusion. Better visibility enables IT teams to respond more quickly to operational, security, and audit requirements.
Organizations with mature ITAM practices typically benefit from:
Improved security visibility
Easier regulatory compliance
Faster onboarding and offboarding
Better IT budgeting and forecasting
Reduced asset loss
Improved operational efficiency
More reliable data for automation and AI
Digital transformation depends on accurate operational data. ITAM provides the trusted asset information needed to support automation, AI initiatives, cloud migrations, lifecycle planning, and broader IT service management improvements.
As organizations face growing security threats, tighter budgets, increasing compliance requirements, and expanding AI adoption, ITAM has become a strategic capability rather than a back-office function. Investing in mature ITAM practices helps organizations improve visibility, reduce risk, optimize spending, and build a stronger foundation for future IT initiatives.
Jana Mančíková
Jana is a Product Marketing Specialist at ALVAO, focusing on campaigns, graphic design, and brand communication. She raises awareness of current challenges that IT managers face nowadays.
