A Small Business Owner’s Guide to IT Hardware Lifecycle Management

GetApp surveyed 500 IT professionals about the number of IT hardware assets owned by their companies.* The average response was 300 hardware assets. Surprisingly, two-thirds of these professionals infrequently find that their hardware assets are either missing or not recorded. This highlights the necessity to understand the concept of hardware lifecycle management.

It's likely that your business also has unrecorded hardware assets that need tracking to reduce expenses. Fully understand the IT hardware lifecycle and its stages to maintain a systematic approach to hardware asset management, ensuring that every piece of your company hardware is used to its maximum capacity.

The hardware lifecycle is a process within IT asset management that includes the entire span of a hardware asset's existence, from initial procurement to final disposal. It is managed by hardware or IT asset managers using resources and tools, such as asset tracking software and IT asset management software.

By performing hardware lifecycle management, asset managers aim to maximize the operational efficiency of assets, ensure cost-effective use of technology, and enhance business productivity.

Another purpose behind hardware lifecycle management is to prevent data breaches, financial waste, and environmental harm through the responsible retirement of outdated hardware. Businesses that manage hardware lifecycle optimize their IT investments and maintain technology infrastructures.

Request for IT hardware assets

The first stage of the hardware lifecycle involves the initial request for IT hardware assets. In this phase, department heads or IT managers identify the need for new hardware to support business operations.

The process usually begins with a formal request submission through a ticketing system, detailing the specifications and justifications for the required assets.

The key profiles involved at this stage are IT analysts and procurement officers, who assess the necessity and viability of the requested hardware, often utilizing asset management tools to ensure compatibility with existing infrastructure.

The primary goal is to align hardware procurement with strategic business needs, aiming to enhance productivity and prevent overspending or underutilizing resources.

Approval of hardware acquisitions

Following the request, the approval stage entails the evaluation and sanctioning of the proposed hardware acquisitions.

Decision-makers, often IT directors or financial officers, review the request to verify its alignment with the company's budget and IT strategy. They often conduct existing hardware inventory audits. 

They consider factors such as cost, benefit, and return on investment. The involved parties utilize budgeting software and financial analysis tools to scrutinize the proposed expenditure.

The approval is granted to ensure that the new hardware will serve a vital role in the business's operations, support its objectives, and to prevent unnecessary or redundant asset accumulation.

Check the approval status of your expenses and purchases in real time on your smartphone via NetSuite Budgeting Software (Source)

Procurement of IT hardware

Once approved, the procurement stage involves purchasing or leasing the requested IT hardware.

Procurement specialists and IT asset managers are typically involved, utilizing vendor management systems and procurement software to select suppliers, negotiate contracts, and acquire the hardware.

The objective is to procure the most suitable hardware at the best possible value. This stage is crucial for establishing the foundation of hardware lifecycle management by selecting high-quality, durable, and supportable hardware that meets the company's needs.

Get a bird’s eye view of all your procurement activities in the eBuyerAssist Platform’s dashboard (Source)

Procurement is done thoughtfully to avoid future issues such as incompatibility with existing systems, excessive maintenance costs, or early obsolescence. Renting hardware assets is also an option. However, businesses per our survey* chose to own instead of renting necessary IT hardware equipment.

Storage and provision of IT hardware

In this phase, the newly acquired hardware is inventoried, cataloged, and prepared for deployment.

Inventory managers and IT technicians use fixed asset management software and storage solutions to track and safeguard the hardware until it is ready for use.

They ensure that the hardware is properly configured and that all necessary software and updates are installed.

The goal is to have hardware that is ready to perform as expected from day one, to avoid delays in productivity and prevent potential security vulnerabilities that may arise from improper setup.

Manage asset storage and provision with a detailed view of each asset assigned to your employees in Asset Panda (Source)

Deploy and discover IT hardware

Deployment is the stage where the hardware is installed and integrated into the existing IT environment.

IT support teams and system administrators use specialized deployment tools and management platforms to ensure that the hardware is correctly set up and functioning within the network.

They also ensure that the hardware is “discovered” or recognized by network management systems, which is crucial for ongoing monitoring and maintenance.

The goal here is to make sure the hardware is contributing to the business operations seamlessly and to prevent downtime or disruptions due to deployment issues.

Secure and version control of IT hardware

This stage focuses on the security and version control of the IT hardware.

Security professionals and IT administrators employ security protocols, software updates, and version control systems to protect the hardware from external and internal threats.

They establish security measures that include encryption, password protection, and access controls, and ensure that hardware firmware and software are up-to-date.

This proactive approach is designed to safeguard sensitive data and the integrity of the hardware, preventing security breaches and compliance issues.

Monitor, manage, and audit IT hardware

Monitoring, managing, and auditing are ongoing processes that occur throughout the hardware lifecycle.

IT managers and network administrators use monitoring software and management tools to track hardware performance, manage assets, and conduct regular audits.

They look for signs of hardware issues, ensure compliance with licensing, and verify that asset utilization aligns with the company's policies.

The purpose of this stage is to maintain operational efficiency, anticipate the need for repairs or upgrades, and prevent financial and operational risks associated with hardware failure or inefficiencies.

Retire and dispose of IT hardware

The final stage of the hardware lifecycle is the retirement and disposition of IT hardware. This is when assets that are no longer efficient or needed are removed from active service.

IT asset managers and disposal specialists ensure that the hardware is decommissioned in a secure manner, with all data properly erased to prevent data leaks.

They also manage the recycling or resale of the hardware in an environmentally responsible way, adhering to electronic waste regulations.

Tools such as data destruction software and decommissioning checklists are typically employed. 

The goal of this stage is to mitigate the environmental impact of IT waste, recover value from old assets if possible, and ensure data security even after the hardware has ceased to be in use. 

This careful approach to disposal helps to prevent legal and environmental repercussions and supports corporate sustainability initiatives.

But, do properly check before disposing of your assets. More than half (54%) of businesses typically store retired hardware assets for 2 years to less than 3 years per our survey.* Ensure that the reasons to replace, upgrade, or retire assets are considerable.

In our 2023 IT management survey*, we also asked those 500 IT professionals about the tools their companies use to track and manage their IT hardware assets. A whopping 96% of them said they use IT asset management (ITAM) software for hardware lifecycle management.

1. Enhances cyber security and risk management

Cybersecurity and risk management are important in hardware lifecycle management. Without tight security, you're looking at serious risks like data breaches or compliance issues. Picture this: If hardware isn't properly tracked or updated, it can become a backdoor for cyber threats.

Untracked or outdated systems can lack the latest security patches, making them easy targets for hackers to exploit and gain unauthorized access to your network. That's where ITAM (IT Asset Management) software helps asset managers stay on top of things with features like real-time asset tracking and automated alerts for outdated systems.

This means they can quickly spot any vulnerabilities and take action before it's too late. Essentially, ITAM software doesn't just track assets; it also keeps a watchful eye on your IT hardware to keep the bad actors out.

2. Increases asset utilization efficiency

Every piece of hardware is an investment, and you want to squeeze every bit of value out of that investment. ITAM software is like the coach that helps you do just that. It gives a clear picture of what's being used, how much, and where.

This way, IT asset managers can make smart decisions, like reallocating underused resources instead of buying new ones. It's all about being smart with what you've got. In short, ITAM software helps turn them into MVPs, ensuring you're getting the most bang for your buck.

3. Enables better decision-making regarding IT investments

Making the right calls in IT investments can really make or break things. It's like playing chess with your resources—you need to be strategic. ITAM software offers a complete, up-to-date view of all your IT assets, their performance, and how much they're costing you.

This information is gold for IT asset managers to see what's working well and what's not, which helps big time in deciding where to invest next. Should you upgrade that server, or can it wait? Do you really need more laptops?

ITAM software takes the guesswork out of these decisions, making sure every move counts and your IT budget is spent wisely. It's not just about tracking assets; it's about making smart, informed choices that pay off.

4. Improves asset tracking and visibility

Keeping track of your IT gear is a big deal in hardware lifecycle management—it's like knowing exactly where all your tools are in a huge workshop. ITAM software gives you a real-time map of every piece of hardware you have—where it is, who's using it and its current condition.

IT asset managers can practically see everything at a glance, with no more guesswork or time wasted searching for assets. This means they can respond faster to issues, plan better for future needs, and avoid the costly mistakes of misplacing or underutilizing assets.

Think of ITAM software as an organizer, making sure every piece of hardware is exactly where it should be and doing what it’s supposed to. It’s not just tracking; it's giving you a bird's-eye view of your entire IT landscape.

5. Streamlines procurement and asset disposal process

Streamlining the procurement and disposal of IT assets in the hardware lifecycle can be challenging without the right tools. For procurement, ITAM software helps keep track of what you need, and when you need it, and even suggests the best deals. It helps IT asset managers make smarter buying decisions, ensuring you get the right gear at the right time and price.

When it comes to disposal, the software tracks the end-of-life of assets, so you know exactly when to retire them. It helps manage the disposal process, making sure you're compliant with IT regulations and environmentally friendly practices. No more risks of hanging onto outdated tech. It’s not just managing assets; it's optimizing your entire IT hardware lifecycle process.

Now that you're equipped with a solid understanding of hardware lifecycle and its management, the real journey begins with practical application. You can't truly master hardware lifecycle management until you dive in and experience it firsthand. Here’s how you can start:

• Build a team of key stakeholders. Assemble a diverse team including IT managers, procurement specialists, financial officers, and security experts. Each of these profiles brings a unique perspective to the table, ensuring a well-rounded approach to hardware lifecycle management.

• Explore ITAM software vendors on GetApp. Time to research. Visit our site and look for top ITAM software vendors. About 18.31% of businesses visited GetApp in the past 12-18 months to learn about software per our 2024 software buyer’s remorse survey.**

When exploring their offerings, focus on qualities like user-friendliness, comprehensive asset tracking capabilities, robust security features, and reliable customer support. Make a list of vendors that seem to align well with your business needs. 

• Enter your details below, and download GetApp's vendor evaluation template for free. It includes a software comparison chart. Use it to score up to three vendors based on your interactions and product demos.

List down the features you need, check if the vendors offer them, and add any notes. The template uses score filters ranging from "Very Poor" to "Excellent." If a vendor lacks a feature, leave that score blank.

The total scores at the top will help you objectively assess which vendor meets most of your requirements. It's an incredibly useful tool for your team to collaboratively select the right software vendor for managing your hardware lifecycle.