Gartner values worldwide software and IT services at US$3 trillion in 2025, representing a 12% increase from 2024, with strong growth also predicted in datacenter systems (15%), devices (10%), and communications services (9%). We are seeing vendors increase costs by 200-300% (Broadcom as a recent example), which is leading to an explosion of IT costs that is only expected to increase as other vendors follow suit.

This major investment in IT and increase in vendor costs means that IT spend is a key topic in the boardroom, and ITAM is now at the forefront of C-suite discussions due to its ability to significantly reduce and control software and hardware spend. Organisations are seeking to rationalise their IT asset portfolios to consolidate vendor spend, and leverage previously overlooked areas, such as tail spend, to bring costs down.

Organisations have been consistently seen to achieve up to 15x ROI on software cost-out initiatives, and ITAM’s role has been lifted to a strategic business partner as companies push for IT asset cost governance and strive for spend transparency. The rise of AI and new IT asset classes (IaaS, PaaS, SaaS, XaaS) has resulted in an even greater need to control IT asset costs and overlap with FinOps/cloud costs, and major SAM tools are rapidly evolving to support this.

The best ITAM software does more than track inventory. It provides unified visibility across all assets, automates lifecycle processes, and integrates tightly with IT service management so asset data drives operational decisions. The right platform depends on asset scale, regulatory requirements, and ITSM maturity. CIOs should prioritise solutions that turn asset data into actionable intelligence rather than static records.

At a minimum, leading ITAM platforms should deliver:

IT leaders need access to reliable data to remove EOL assets that could be highly vulnerable, and to know where they have unpatched apps that pose the biggest threats.

“In a hybrid world, organisations must know what hardware, software, SaaS and cloud inventory they have, where it is installed, who has access to it and how it is being consumed so they can make better business decisions,” says Kevin Miller, director of product marketing at hybrid IT asset management specialists, Flexera.

The future of IT asset management is likely driven by innovation and collaboration. Integrating AI and machine learning will continue transforming how organisations manage their assets, predict future needs, and optimise expenditures intelligently. Enhanced data analysis capabilities will enable companies to derive deeper insights from their IT assets, driving informed strategic decisions. Moreover, collaboration across departments will become increasingly essential. ITAM will no longer function in isolation; instead, it will require joint efforts between IT, finance, legal, and procurement teams to create a holistic view of asset utilisation.

This collaborative approach will foster shared responsibility and a culture of accountability, further enhancing the effectiveness of ITAM programs. As sustainability becomes a core business priority, ITAM will play a pivotal role in helping organisations achieve their environmental goals. By focusing on responsible asset management and lifecycle practices, companies can mitigate risks and position themselves as leaders in sustainability within their respective industries.

The state of IT asset management is one of constant evolution and adaptation. As organisations continue to embrace new technologies and face increasingly complex challenges, investing in effective ITAM practices will be paramount. By prioritising transparency, integration, and sustainability, businesses can unlock the full potential of their IT assets, driving operational excellence and achieving strategic success in an ever-changing landscape.