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An effective IT Asset Management (“ITAM”) programme uses a systematic approach to focus on managing cost, increasing agility and reducing compliance risks associated with software audits. According to Gartner, a successful execution of ITAM as a discipline, typically achieves 30% cost savings in the first year and at least 5% cost savings in each of the subsequent five years.

What is IT Asset Management?

According to the International Association of IT Asset Managers (“IAITAM”),
“ITAM is a set of business practices that incorporates IT assets across the business units within the organisation. It joins the financial, inventory, contractual and risk management responsibilities to manage the overall life cycle of these assets including tactical and strategic decision making”

IT Assets not only includes the hardware, but also the software that are found in the business environment.

Building a Successful ITAM Programme

It is clear that businesses today cannot function without IT assets – inclusive of hardware, software, network and other technologies – supporting business operations. These assets are not only numerous, but they are also expensive to acquire, configure and maintain. With IT equipment frequently replaced due to the rapid advancement of technology, it’s important that these large numbers of constantly churning, costly assets are effectively managed from beginning to the end, to achieve the highest possible return on investment (“ROI”)
For any organisation planning to embark on an ITAM programme, Gartner Inc. provides some guidance. According to Gartner, there are 4 components to a successful IT asset management programme;

Effective IT Asset management addresses the entire lifecycle of the asset. Most businesses mistakenly believe that IT lifecycle management begins upon receiving the assets and ends when the asset is no longer operational. However, the cycle actually commences during the requisition phase and ends at the disposition/disposal phase. It is important to realise that disposition is not disposal. The former is merely getting rid of the IT assets. The latter is the practice of executing the most efficient, secure, cost-effective and sustainable way to manage its end-of-life equipment.

Increasing benefits accrue as maturity level increases. All organisations start at a low to modest level of ITAM maturity. However, organisations progress towards increasing maturity as a result of (i) process improvement through the adoption of industry best practices, and (ii) adoption of tools that support every process in each phase of the lifecycle.

Adopt good practices which are designed to achieve specific goals and objectives while taking into account corporate policies, standards and procedures. Good practices are modelled on established and proven industry practices.

Using proven tools, build 4 core capabilities to deliver an effective IT asset management programme. Firstly, you need an ITAM repository which serves as the central store for the required financial, contractual and physical data. Secondly, a hardware and software inventory and usage information system to support ITAM processes such as receiving and assigning inventory. Thirdly, build tight integration with adjacent IT and business systems where data is reliant upon each other. Lastly, enable data import to provide capabilities of filtering and transforming source data to either create or update asset records in the repository.

Aligning ITAM Metrics with Business and IT Goals

The key prerequisite for the success of any ITAM programme is to map the priorities of your business to the value expected to be delivered through your ITAM discipline. This should be done for all core functional areas of your business. Gartner’s 2011 ITAM survey results underlined the important benefits expected of an ITAM programme.

It is not uncommon that organisations today are embarking on sustainability and/or green IT programmes. Many such programmes are narrowly focused on reducing the carbon footprint and environmental waste. However, there is a much wider spread of metrics to be considered. The table below highlights some examples of how you can look at ITAM metrics that convey progress towards sustainability goals.

Aligning your ITAM value metrics with critical business initiatives, will allow businesses to maximise the impact of results. The more tightly integrated ITAM practices are with key business goals and objectives, the more indispensable ITAM will undoubtedly be.
Rentwise assists organisations to manage their entire IT asset lifecycle from requisition to disposition. Talk to us to find out how we can help your IT asset management be more effective.

The Advantages of Leasing Equipment for Your Business

One of the key decisions you have to make when running a business is whether you should buy or lease your IT equipment. With technology being a fast evolving industry – risking IT equipment obsolescence – leasing your IT equipment can be a better option compared to purchasing. Leasing provides a level of automation, flexibility and simplicity coupled with a strong IT asset management plan for customers that reduces total cost of ownership.

One of the first questions you should ask whenever you are considering to invest in an asset for your business is: “Do I really need to buy this?”

What is IT Equipment Leasing?

Each business is unique, and the decision to buy or lease business equipment must be made on a case-by-case basis. Even if a business has a healthy cash-flow, leasing can still be a better choice. Here are a number of benefits of leasing IT equipment which makes it a great option for many businesses.

IT equipment leasing allows business owners to rent IT equipment from a third-party leasing company for a specific period of time. The company would then have to make monthly payments for a predetermined number of months according to the agreed lease. At the end of the lease, the company must return the IT equipment, renew the lease, or purchase the equipment.

Leasing enables you to do more with less. Leasing stretches your available budget dollars so you can acquire more equipment and the latest technology on the market. Optimising your investment dollars this way enables you to lower your organisation’s overall cost of ownership while providing your employees with the tools they need to be efficient.

Leasing allows businesses to make regular monthly payments to use the IT equipment for a fixed term rather than paying a high upfront cost. This releases more money for the business to invest in other revenue generating initiatives. The assumption is that the company is expected to generate cash flows with this investment, hence increasing the present value of money.

The implementation of MFRS16 allows a lessee to claim tax deductions based on lease rental expenses. Where the lessee is deemed to have purchased the IT equipment, the lessee is eligible to claim interest expense as a deduction and capital allowances on the principal portion of the assets.

Leasing provides 100% financing on the equipment hardware and software you need. Service contracts, training, freight and installation charges are incorporated into the lease structure, reducing initial cash outlay.

When you lease a computer, you receive technical and maintenance support. Business owners who rely heavily on their computers may not have the time or the skills to troubleshoot if something goes wrong. If a computer is in need of service, the lessor covers the costs. This also makes it easier and cheaper to upgrade technology as leasing takes the maintenance responsibility off your hands.

When you lease a computer, you get the most up-to-date technology. The advantage to having updated equipment is that it often works faster and smarter. New hardware and software means your business avoid dealing with outdated technology which puts you at risk of malware and other online threats.

Cost is a major factor in sourcing assets and often businesses feel that they only have two options: either spend a fortune to buy it or go without it.

Want To Know More About Leasing?

Being sure about the decisions you’re making for your business can be tricky. You would want to be convinced you have considered all the angles and know the details of each option. When selecting a lessor, vet all aspects of the agreement including up-front negotiations, delivery, and installation; midterm support for upgrades; and end-of-lease return and disposal policies. Rentwise is a reliable and experienced lessor and data disposal specialist that provides a range of services and expertise to help ensure you get the absolute best out of your lease agreements. Our mixed approach of right-fit technology and effectively priced solutions will allow you to enjoy the best cost-effective services. Talk to us now and we’ll be happy to answer any of your questions.

Mounting Challenge – The Throw Culture

E-waste is a popular and informal label for electronic products nearing the end of their “useful life.” Such electronic products include computers, televisions, VCRs, stereos, copiers, and fax machines. What is perhaps not top-of-mind as an alternative to simply discarding them is reusing, refurbishing and recycling them. Awareness that e-waste contains substances that pose significant environmental and health risks has widen – especially if inadequately treated or improperly disposed. What is under emphasised is the fact that e-waste results in unnecessary loss of scarce and valuable natural materials such as gold, platinum, and cobalt. This exerts further pressure on availability of limited natural resources. Latest estimates from The Global E-waste Monitor 2017 show that the world now discards approximately 50 million tonnes of e-waste per year.

Latest estimates from The Global E-waste Monitor 2017 show that the world now discards approximately 50 million tonnes of e-waste per year but only 20 per cent is recycled while the remainder is often incinerated or dumped in landfills.

According to the regional e-waste monitor, 2012 witnessed an estimated 56.56 million tonnes of Electrical and Electronic Equipment (“EEE”) introduced to the global market. Asia is both the world’s largest manufacturer of and market for EEE, consuming 26.69 million tonnes of what was put on the global market, or about half the global amount. In 2014, Asia generated 16 million tonnes of e-waste, which equals 3.7 kg per inhabitant compared to 15.6 kg per inhabitant in Europe. As Asian countries rapidly industrialise and their citizens enjoy higher income and living standards, the consumption and disposal of EEE is anticipated to increase.

PROJECTION OF E-WASTE IN MALAYSIA FOR THE YEAR 2010 TO 2020

Rising to the Challenge – Rentwise’s Double Prong Strategy

Malaysia is currently generating an estimated 280 kilotonnes of e-waste per year according to The Global E-Waste Statistics Partnership. In order to reduce the impact of e-waste in Malaysia, the government wants to make it mandatory for consumers to send certain unwanted electrical and electronic items to places licensed to handle e-waste. The proposed change in the law aims to lessen harm to the environment and public health when such waste is not disposed of properly.

Rentwise’s 2-prong e-waste solution to the country emphasizes on (i) making IT lifecycles more sustainable and (ii) ensuring companies meet strict environmental standards. The latter focuses on proper handling of end-of-life products. This brings with it not only an environmental benefit, but also protects the public’s health, from emission of hazardous substances from careless e-waste disposal.

Rentwise’s approach of remanufacturing and repurposing ICT equipment, notably personal computers (“PCs”), has positively impacted the environmental and society at large.

Rentwise strives to transform what’s seen as an e-waste into a resource benefiting organisations, communities and the environment. With more than 18 years of experience as the leading Green IT infrastructure services in Malaysia, Rentwise is the only provider in Malaysia offering end-to-end IT Infrastructure and Asset Lifecycle Management Solutions, providing unparalleled solutions to our clients, and liberating them from non-core tasks so they can focus on their bottom line. Talk to us on how we can take your business to the next level.