Every IT asset has a finite lifecycle. IT asset management (ITAM) is about managing an asset’s lifecycle to ensure maximum productivity. While each organization may define unique lifecycle stages, an IT asset lifecycle generally includes the following stages:

Planning: This involves making decisions about assets needed by an organization, their intended use and how to acquire them. Organizations also consider competitive alternatives and carry out cost-benefit and TCO (total cost of ownership) analyses of all possible options while planning for asset acquisition.

Procurement/Acquisition: Assets may be acquired by buying (including Software-as-a-Service), building, licensing or leasing.

Deployment: Asset deployment may involve installation, integration with other tools, providing user access and providing technical support.

Maintenance: Once the assets have been deployed, provisions should be made for regular maintenance, upgrades and repairs to optimize their use and maximize value. This will prolong their lifespan, minimize costs and mitigate risks.

Retirement: An asset is retired when depreciation sets in and maintenance is no longer feasible. That is, an IT asset reaches the end of its lifecycle when maintenance becomes more frequent and the organization spends more resources on it than it used to. An organization can also decide to retire an asset if there are better alternatives in the market. Asset retirement involves disposing of old assets, updating asset information, terminating support and license agreements and making plans to transition to new assets.