Importance of Hardware Asset Management

Importance of Hardware Asset Management

Nowadays, there are huge savings made on Software within an organization through the Software Asset Management program. But what about the hardware aspect? Are there cost savings to be made on desktops, laptops, physical servers, etc.? Thus, with an efficient hardware management strategy, large savings are made on hardware assets.

MarketandResearch.biz provides you with incredible industry-related details about Hardware Asset Management that have a significant impact on your growth.

Now the question that arises in the mind of the reader is

What is Hardware Asset Management?

Hardware Asset Management (HAM) is the process of maintaining all kinds of physical components of a computer and a laptop as a whole. HAM also needs to be part of a particular company’s overall scope and processes need to be aligned with other IT processes to ensure HAM is a big part of IT, and just like software, hardware needs to be efficiently managed in order to ensure the organization is making the most out of the assets. Thus, the processes need to be in place to manage the asset from the point of request, to the moment the asset is retired. As a result, efficiently managing hardware assets can also have an impact on the amount of time it takes to fix the hardware problems, and with the correct HAM processes in place, and a good education and understanding of said processes and hardware asset management in general, end users will see the time it takes to fix, request or procure hardware dramatically reduced. This in turn leaves the ITSM team to concentrate on other areas.

Let us take a look at the lifecycle of Hardware Asset Management as a whole

Lifecycle of Hardware Asset Management:

Hardware assets believed to have a complex lifecycle, just like its software counterpart, but it needs to be managed in a slightly different way. However, in USA and Canada there are various methods of money making and legal ways to dispose of old hardware assets, and there are organizations that avail this old hardware from the organization, and then sell them as a ‘refurbished’ hardware component. Thus, the main stages of a hardware assets lifecycle are as follows:

  • Hardware Request
  • Procurement
  • Installation of company image/software
  • Deployment
  • Use ( Needs upgrading? )
  • Storage/Not in use
  • End of warranty or maintenance
  • Retirement
  • Disposal

Lifecycle of hardware asset management

The Inter Relation Between Hardware Asset Management (HAM) and Software Asset Management (SAM)

On the other hand, Hardware Asset Management and Software Asset Management does go hand-in-hand, and SAM project will not work as effectively or successfully without having HAM processes in place, or some form of HAM management structure.

Thus, it is key to remember that with any projects that relate to new software, hardware considerations must also be addressed. This is especially true for any new software that is requested that isn’t on the approved software list. Technical software, or high-end graphics software, can require specialist hardware equipment to run correctly, as a result, SAM processes need to incorporate HAM, and vice versa.

Thus, interrelating the two disciplines and having an overall ITAM process that considers both hardware and software matters is the best way of effectively managing IT assets, whilst ensuring compliance is met for both hardware and software as a whole.

Cost Savings

Generally, HAM processes can save an organization’s fortune, both on the basis of hardware and subsequent software. Thus, actively and correctly managing hardware assets throughout its lifecycle can quickly enable significant reduction in the amount spent on the hardware, mainly during its lifecycle within a particular organization.

Thus, Hardware Asset Management (HAM) enables you to reduce

  • Maintenance costs
  • Hardware budgets
  • Software spends
  • Potential to save money through disposal processes

On the other hand, the most vital aspect is capturing the financial information about the life cycle of a particular computer hardware components, and which helps your organization in making quick business decisions based on meaningful and measurable financial objectives as a whole. However, this also helps companies to save cost for the next years IT budgets in both software and hardware assets, thus giving a justification for HAM and also giving transparency to the IT stakeholders within a blink of an eye.

Furthermore, managing hardware assets also helps on the yearly spend on hardware, and having a process in place to manage existing assets reduces the time and money spent on identifying the need for new pieces of hardware. Thus, knowing the specification, location and department of where the hardware asset is allows the service desk to recoup any machines that are no longer needed, or from a user that has since left. It also helps to keep a record of those hardware assets that are ‘in stock’ and ready for deployment, and having these processes in place helps save not only money, but also a lot of time on the service desks SLA’s (service level agreements) as a whole.

Return on Investment (ROI)

Successful implementation of the HAM process enables an organization to gain a quick return on investment from the financial standpoint and from a time aspect as a whole.

Finance:

Financial ROI on HAM is a more lot like software asset management, and there may be big savings and cost cuts at the beginning, but as time goes on those savings will be minimal. However, with appropriate strategy, and the right tools and data, ROI on HAM long-term will be a steady reduction in money spent on hardware, and also a reduction on the IT budget for hardware. Thus, the money can then be spent elsewhere within IT, or another department altogether to help with the overall success of the organization as a whole.

Time:

An efficient Hardware Asset Management (HAM) program in place, thus, the organization will save a lot of time on managing hardware asset and HAM processes will speed up SLA’s (Service Level Agreements) for hardware requests or incidents, and will generally make the hardware management a lot more seamless. At the same time, it also reduces the time impacts on the end user who has a hardware related incident problem, thus reducing any ‘downtime’ they might experience as a whole.

In conclusion we can say that a strong Hardware Asset Management program can save an organization time and money as a standalone process, but it is far more effective when incorporated with SAM processes and policies, and if you are focusing on implementing SAM, then now is the time to start considering the hardware management aspects if you haven’t already done so. The HAM Processes need to be updated within every six to nine months, to make sure you marry your hardware and software asset management processes together.

Learn more about ngDesk Hardware Asset Management processes today!