Question

Explain the concept of IT assets. Identify some of these assets.

Choose one of the following terms and describe, in detail, what it is and how it affects IT operations and asset management.

-Asset identification

-Asset management tools

-Asset maintenance tools

-Baselines

-End-user support

-Asset documentation

-Licenses

Answer 1

IT Asset are information technology and MIS tools, including both hardware and software that a company owns. IT asset are crucial for proper functioning of the organizations business processes and procedures as well as decision making. IT asset are integrated components of a company’s networking and system infrastructure.

Since IT assets have limited life cycle due to obsolescence, break down, expiry of licenses etc. the management must have dedicated team to look after the IT assets of the company. It assets are important and beneficial for the company at the same time they have considerable cost implications.

Let us understand the Importance of Licenses in context of IT assets and their role in operation and asset management.

Asset management is planning, organizing and controlling IT assets of the company to ensure these assets contribute towards organization efficiency and effectiveness in goal achievement. IT asset management tools can do this with minimum human intervention.

As said IT asset includes Systems, hard ware and software that company has to support its business, all of these IT assets are raely manufactured or developed by the company. Rather these IT assets are procured from specialized firms that manufacture and market them by paying term based fees or upfront cost.

Therefore business organizations have to obtain license of these IT Assets for using them by paying to IT asset supplier companies. The license could be of:

1. One time Usage
2. Fixed Term based usage
3. Number of times usage
4. Life time usage

A company has to procure asset license to fully use its capabilities.

Managing Asset License:

Usually It asset managers has to maintain a repository of all the IT Assets and their licenses. An OMS (Observer Management System) however can do this to the company; it can manage IT assets, and their licenses. An OMS can eliminate need to obtain license for each and every hardware or software, rather it can group and identify collective systems with many sub software and hardware bundled with it. Asset management system can dynamically allocate licenses as and when required.

Effect of license of IT Operations and Asset management

1. A company may have to obtain multiple licenses if it fails to plan its license requirements, adding cost to IT operations.
2. A deprecation of IT asset needs to be factored in IT budgeting.
3. If not managed properly a license our due could bring legal as well as operational challenges to company.
4. New licenses have to be obtained to unlock additional or updated features of an IT asset. Hence a constant vigilance has to be kept by IT department on new releases.
5. Managing licenses can be complex and time consuming task, a specialized personnel needs to be deputed for this in IT department.
6. A well managed license system can reduce cost and improve operating efficiency by maximizing usage of more systems that need license with fewer numbers of licenses by dynamically allocating license to different user as per demand.
7. Any operation using device without proper license may bring legal implications to company and critically affect the operation.
8. It operations has to conduct regular audit of licenses that the company uses to ensure availability of It assets when and where they are required.