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The Importance Of Taking Inventory

In November of 2004, the Department of the Navy announced an ambitious plan to inventory the Navy's plethora of IT networks, servers, and applications. As of June 2005, the Navy catalogued over 250,000 hardware and software systems worldwide!

Most businesses, especially small and medium-sized enterprises, don't have to worry about keeping tabs on hundreds of thousands of systems scattered worldwide. Then again, SMEs don't have multibillion-dollar operating budgets either.

It's absolutely necessary for businesses to know the various IT assets they own and operate. So IT staffs must perform periodic inventories of hardware and software assets. The key to a successful inventory is developing a method that accomplishes the goal without busting the budget.

 Why Inventory?

Beyond the obvious fact that knowing your assets makes good business sense, a few reasons specify why it's a necessary task.

Regulatory initiatives, such as Sarbanes-Oxley, HIPAA, and others, require that businesses keep close tabs on the data their IT systems generate. Backup and archival strategies must ensure data is easy to retrieve when it's needed.

Managing the life cycle of data from generation to archival begins with a thorough understanding of the IT assets that generate the data. Hardware and software asset inventories are absolutely essential for gaining this knowledge and for prioritizing the efforts required to protect important business systems and the data they generate.

Another reason for conducting IT asset inventories is to discover areas of your IT infrastructure that require attention. For example, an asset inventory might reveal that various servers in your data center need upgrades. Without taking stock of what you have, purchasing new technology is a crapshoot that may result in wasted money, time, and effort.

Finally, inventorying your IT assets is especially important to ensure that you maintain compliance with the various software licenses your business needs to operate. If you don't know about a server a branch office purchased that suddenly puts you out of compliance with a software licensing agreement, your business runs a substantial risk of violating its licensing agreement. Plus, conducting an inventory can help you quickly ferret out illegally installed, unlicensed copies of software in your business.

 Timing

One of the first questions that comes up regarding IT inventories is frequency. How often should you inventory your business IT assets?

While there is no definite rule for the timing of inventories, the frequency of change of your IT infrastructure should be the determining factor here. If your business is growing and you are constantly purchasing new software and/or hardware, you may need to conduct inventories more frequently, perhaps every quarter. Conversely, if your IT infrastructure does not change very often, you can get away with more time between inventories, for instance, once a year or once every two years.

 What To Track

What specific items should be at the top of your inventory list? What items can you safely exclude?

Most hardware items in your business, such as servers, desktops, laptops, and networking equipment and appliances, should be part of your inventory. This is especially true for hardware operated under the terms of a contractual agreement, such as a lease or a maintenance service contract.

In fact, many asset management applications let you combine various properties of an asset into one database application. For example, Peregrine Systems' AssetCenter Portfolio lets you enter various financial, contractual, and physical properties of an asset into a single, integrated data management system.

In terms of prioritization, the more mission-critical assets should receive the closest scrutiny. The same goes for software. For example, you want to be sure that your business ERP system software stays fully compliant with the terms of your licensing agreement with the vendor.

In fact, software inventories and protection from damaging liability go hand in hand. Software companies take an active interest in protecting their intellectual property and in most cases (especially giants such as Microsoft and Oracle) have the financial resources to go the distance in a legal dispute. The last thing you need is a looming lawsuit because employees in your business installed unlicensed copies of software applications.

 Tools For Inventory Control

IT asset management tools are available to help you manage your data center infrastructure with ease. These applications are specifically designed for asset management of servers, network equipment, desktops, and software. Items you can track with these applications include software licenses, OS update status, patches and updates, and the various financial, contractual, and physical properties of hardware and software assets.

Examples of asset management applications that won't break an SME budget include Altiris Inventory Solution and Executive Software's Sitekeeper (primarily for inventory and tracking of software licenses). Peregrine Systems' AssetCenter and IBM's Tivoli are examples of products aimed at the larger-enterprise marketplace, but keep your eye on these companies because they are making a concerted effort to reach SMEs. See the “Inventory Control Programs & Tools” sidebar below for more information on inventory tools.

Another technology that may eventually play a role in IT asset management and inventory control is RFID. RFID systems use small chips called tags to store information about a product or a piece of equipment. The chips are attached to a product or equipment; a business can then use an RFID reader to retrieve information from tags and manage inventory, track product shipments as they move down the supply chain, prevent theft, etc.

By its very nature, RFID is ideal for situations where inventory control is a requirement. RFID tags that store IT asset information could eventually let the vital properties of an asset such as a server or router stay with the equipment throughout its service life. For example, extracting details about a maintenance or service contract for a server may be as simple as downloading the information stored in an RFID tag on the server.

 Humming Along

IT asset inventories and overall management are a crucial part of keeping your data center infrastructure humming along smoothly. The advent of new regulatory requirements that impose strict data control requirements on businesses will force many IT staffs to improve the way they manage their hardware and software assets. After all, you can't manage critical data if you don't even know what equipment and applications generate it, so compliance begins with good inventory and asset management controls.