Why Developing a Strategy for IT Asset Management Is a Must for Today’s Businesses

All businesses should have a strategy for IT asset management. This strategy protects companies against compliance audits that software vendors carry out now and then. By constantly keeping tabs on the software and systems in use within your business organization, it gets easy to make purchase decisions of business assets. But, perhaps more than anything else, ITAM tools help businesses to avoid the fines and other problems that can result from issues with your company software licenses.

Software companies have been known to penalize users heavily when they catch them using software that does not comply with their licensing agreement that you agreed to when you purchased the software.

 

IT Asset Management

Sometimes the software companies can fine you up to $30,000 every time they find the non-compliant software in a computer within your organization. Imagine the software has been installed in 10 computers with none having complied with the licensing agreement.

It would result to a fine of $300,000. What’s more, when the tech company finds your organization is noncompliant, other companies often quickly make their way to your facility to audit compliance with their licenses.

Consequences of an audit that returns a licensing noncompliance verdict

Noncompliance is seen as fraud: Often when an audit returns a noncompliance verdict, lawyers representing that company sit down with lawyers from the software company and try to agree on how much the company should pay in fines. Noncompliance is a crime as is seen in the same light as fraud.

That is why most companies would rather come to an out of court agreement. Sadly, most businesses do not fail to comply knowingly.

Because of not having IT asset tools that can remind them to comply, they find themselves on the wrong side of the law. Given that ignorance has no defense, they will struggle to explain why their licenses are not up to date.

The cost of not having IT asset tools far outweighs the cost of using ITAM software: ITAM tools have many benefits to a business enterprise, yet some business leaders insist they cannot afford it. The problem with this argument is that over time, the same company will painfully spend money paying off fines to prevent software companies from suing them for stealing their intellectual property.

When a company installs ITAM tools in its internal network, it becomes easy for it to answer compliance questions that software companies often ask before making the decision to do a full audit of your business. If your business is able to adequately respond to all the queries that the software company sends, it is unlikely that the software company will pursue the issue further.