Should the IT asset lifecycle be fixed?
Lifecycle of IT assets is often fixed. Laptops are replaced every four years and phones every three years. From an IT asset management point of view, it is a quite straightforward model. However, there is a downside.
For example, some laptops are still in good condition after four years and employees would love to continue working with them because changing is always extra work. At the same time, there might be someone who is getting annoyed about their unreliable device.
This raises the question, should IT assets have a fixed lifecycle?
Different ways to manage the end of IT asset’s lifecycle
As mentioned in the intro, one of the most common models is a fixed lifecycle. In this model, each device type has basically a predefined lifecycle. This is often something that is already decided in the procurement stage. On paper, this is a good way to manage IT assets. It makes returns easier to forecast, simplifies budgeting, and gives procurement a clear timeline. In a fixed lifecycle model, retired company-owned devices can often still be sold for a good price, as a four-year-old laptop typically have plenty of useful life left.
The biggest downside is that the model does not take the actual condition of each device into account. This can lead to situations where devices are replaced too early or too late. A fixed lifecycle is often also bit more expensive than other models.
Another popular model is condition-based. In this model devices are replaced based on their actual condition and how well they still work. The age of the device still matters, but it is only one part of the decision. The downside of this model is that it is more time-consuming and you will need to have good data to run it smoothly. Without clear rules, decisions can easily become inconsistent, especially when you are managing hundreds of devices.
Then there is of course a hybrid model. This is quite a typical model as well. By default, all devices have a fixed lifecycle, but devices that are in extra good condition or otherwise smart to keep longer can have an expanded lifecycle. This model combines the best of both worlds. You will have a clear process and structure, with the freedom to make individual decisions. However, like a condition-based model, a hybrid model also requires up-to-date data and clear processes to work effectively.
Leasing also shapes lifecycle decisions
Leasing adds another layer to the topic. When devices are leased, the lifecycle is connected to the leasing contract. This makes budgeting, returns, and replacement planning simple as you typically return leased devices when the leasing term ends.
However, leasing does not remove the need for device-specific decisions. A leased device may still be in good condition when the contract ends, or it may become unreliable before that. That is why the contract end date should guide the process, but not be the only factor.
The ideal solution is to integrate leasing information with device health data. This way you can identify which devices should be returned and which should be extended. Because the costs for extended lease periods vary, you need to select the correct leasing model and leasing company. Having an integrated ITAM solution is important as you need to be able to build automations with health and lease data. In other words, you cannot have two separate systems if you want to automate your processes.
Good ITAM software makes better lifecycle decisions easier
No matter which lifecycle model you choose to follow, reliable asset information is key to success. This includes knowing who uses each device, where it is located, when it was purchased, when the warranty ends, whether it is leased or owned, and what condition it is in. Keeping this all up-to-date is almost impossible without the right tools.
If your asset data is spread across spreadsheets, different tools and leasing portals, any process becomes difficult to manage. Modern ITAM software brings asset data into one place and makes it more usable in daily work. Integrations with suppliers, vendors or financing partners ensure that you don't need to jump between systems and data is kept up-to-date without manual copy-paste. When all relevant data lives under your ITAM software, IT teams can also build automations that do work for them.
For example: a device can be flagged for review when it reaches the end of its planned lifecycle. The automated report shows warranty data, condition data, user information, and possible next steps. Human involvement is only needed to make the final call. Will the device be kept in use, reassigned, returned to a leasing partner, sent to buyback, or recycled?
From fixed rules to smarter lifecycle decisions
The IT asset lifecycle does not have to be fixed. Different organisations need different ways to manage their devices. For the organisation, it can be smarter to also look at the device’s condition, use, cost, security and value.
With clear ITAM processes and the right software, organisations can use a more flexible model. This can help reduce unnecessary costs, improve the employee experience and keep devices in use for longer when it makes sense.
IDR helps manage the whole device lifecycle in one place. It connects suppliers, financing partners, UEM tools and recycling partners. Book a demo to see how it works.
Written by Mikko Lehmus
Mikko is the CEO of IDR and has gained a comprehensive understanding about managing the lifecycle of IT devices, all the way from purchasing to recycling. Mikko is on a mission to minimize manual labor by automating as many ITAM processes as possible.