What is the ROI of ITAM?

In short, IT asset management software (ITAM) helps companies manage their IT devices more effectively, and depending on the features, it can also improve procurement processes and help with device recycling and/or leasing return processes. As we all know, nothing good comes without a price.

This leads to an important question: What is the ROI of ITAM? In this blog, we’ll explore the real benefits of ITAM and examine its return on investment. Is ITAM a worthy investment for your business? Let’s find out.

How much does ITAM software cost?

The cost of ITAM software typically correlates with the number of devices being managed. Additionally, the price may increase depending on the additional features and/or integrations you need. It’s also important to consider potential onboarding fees, which can add to the initial investment.

Example for 500 devices (250 employees, all have laptop and phone):

500 x 0,50 €/device/month = 250,00 €/month

Total cost per year: 3 000,00 €

Increasing Productivity

Let’s start with the most obvious one. Modern ITAM solutions can reduce hassle and save work time for your IT team. In the best case, you can automate almost 80% of manual asset management processes with the help of ITAM, such as device ordering, inventory management, and recycling.

Manually managing IT assets typically adds 5-8 extra hours of work per week for a mid-sized company with 250 employees. Assuming an average hourly wage of 30 €/hour, automating manual processes leads to annual savings of 12 480€. With the software cost of 3 000€ per year, the ROI is already 300% not considering other benefits.

Reducing overspending

Something that is often forgotten is that proper tracking of our device prevents overbuying. Consider this: if the average laptop costs 1 000€ and you avoid purchasing five unnecessary laptops a year, you save 5 000€.

Knowing what devices you already own, how old they are and who is using them, allows you to reallocate underused devices easily, potentially saving thousands. With ITAM software automation, you can for example get automatic alerts whenever a device is left unused for over 30 days. No need to manually follow every device.

Timely recycling and better resale value

ITAM software helps you to spot old devices that can be recycled. When done right, selling old devices for reuse can recover an average of 10-15% of the original purchase cost. For example, recycling 50 used laptops can recoup around 7 500€, considering an average resale value of 150€ per device.

It is also worth noting that without a ITAM solution in place, it is very common that old devices are left on the storage shelves where their value depreciates at an average of 5% per month.

Enhancing Security

Losing a device or recycling it the wrong way can be very expensive. In the worst case, you can end up with a huge security threat that results in a company data breach. This might cause damages that are counted in millions. Automated ITAM software tracks each device, making sure that your IT assets are secure, and automatically informs of any security issues that need attention.

If your company is ISO 27001 or SOC 2 certified, proper IT asset management software is something that cannot be overlooked. Having all IT asset data in one place with automation considerably lowers security risks.

Conclusion

Investing in ITAM isn’t just about keeping track of your devices; it’s also about ensuring your money is well spent and supporting your company’s growth. The small cost of monitoring each device is a smart investment that keeps giving big returns.