What is Cloud Asset Management?

Cloud Asset Management (CAM) is the latest ITAM discipline requiring a different approach to managing this new asset type.

While it may be perceived that SAM or FinOps is all that is needed to manage cloud assets, there is a hidden challenge that is only known by a sub-discipline of HAM!

The Challenges of Managing Cloud Assets

Transparency

Cloud services are the outsourcing of an organization's IT operations. Outsourcing means the transparency in IT operations has been sacrificed and is now hidden behind the cloud service provider's (CSP) walls. The organization directly depends on what information the vendor provides to manage the assets.

Complexity

Managing organization-owned IT assets was challenging, but did the cloud make it easier? Or did adopting the cloud swap one complexity for another? SaaS may be the least complex compared to PaaS and IaaS, but the CSPs now have more control over pricing and add-ons. Furthermore, the CSP can move functionality around and package functionality to suit the CSP's revenue and profit goals. The configuration cost may be assumed or unknown until the invoice arrives. The solution to managing complexity is to control change through the process, standards, knowledge, and contractual language.

Cost

Managing runaway costs is well publicized, with FinOps being touted as a viable solution. FinOps is as valuable to the ITAM program as IT and cyber security. But just like security, where we can't secure what we don't know we have, the same can be said for FinOps. IT's budget is distributed to other departments, and shadow IT continues to be challenging. While FinOps should be proactive, the lack of an IT asset acquisition gate limits FinOps to a reactionary tool.

While the costs of cloud services are a valid concern, the price point may be a more significant challenge to the organization. Cloud services can be perceived as low-cost and easy to configure and deploy. This perception has attracted departments and business units to obtain part of IT's budget to fund their own IT initiatives, possibly without the oversight that IT can provide. This shadow-like IT demands ITAM manage all IT assets, not just the assets used by IT. While ITAM should have always been involved in managing assets outside of IT, the cloud has created a tipping point.

The Cloud Asset Manager must expand the ITAM umbrella so that all IT asset owners, including budget transparency and discipline, fall under its protection.

Corporate Governance

Let's face it; corporate governance has always been a challenge. But now, with cyber-attacks being a constant threat, corporate governance is even more at risk, and the board has taken notice. The organization's governance requirements are now in the hands of a third party – the cloud service provider. Corporate governance requires transparency in IT operations, which remains for the cloud service provider. A robust vendor management program is needed, which is part of the Cloud Asset Manager's responsibilities.

The Benefits of Cloud Asset Management

Operational Transparency

IT operations that used to be executed by the organization's employees are now performed by a third party, the CSP. The CSP must directly provide the transparency provided by the IT department. The Cloud Asset Manager represents the interests of all parties that require that same level of transparency from the IT department, including finance, legal, and cyber security.

Vendor Compliance

If software compliance is adhering to the terms and conditions of the license, then vendor compliance can be defined as adhering to the terms and conditions of the cloud contract. The Cloud Asset Manager assists in creating the contract and then manages the vendor to the agreement based on the CSP's performance and user feedback.

In-house Expertise

When HIPAA and the GDPR became law, in-house expertise, knowledge, and awareness were required to meet corporate governance requirements. The cloud asset is unlike any other IT asset and requires well-trained Cloud Asset Managers to protect the investment in cloud services and the organization's reputation.

The Features of Cloud Asset Management

Contracts

The contract is essential to managing cloud assets. The contract is used to manage the CSP's service and product performance and to provide the necessary transparency into the CSP's IT operations. The agreement represents the interests of finance, cyber security, legal, and the users. This emphasis on vendor compliance is quite different from any other IT asset management sub-discipline, except for ITAD and, to a lesser degree, leasing companies.

Data curation

Because of the loss of transparency in IT operations, the organization must depend on the information the CSP can provide. Ideally, this information is detailed in the cloud contract. The information can be delivered from the CSP as raw data or reports. Regardless of how the data is provided, someone needs to curate it into meaningful information for different audiences like IT, cyber security, and finance. Furthermore, the data becomes part of the ITAM repository for retention requirements and quality purposes. ITAM's repository avoids the hoarding of information and duplicate curation of data by each department, with the added benefit of providing broader and deeper views of the data.

Maximize Value

ITAM maximizes the value while minimizing the risk of using IT assets. The Cloud Asset Management sub-discipline of ITAM ensures the organization's investment in cloud services results in greater value for the organization, its customers, and its shareholders. Cloud services and the outsourcing of IT operations should be about more than just saving money. The investment should also be about obtaining best-in-class operations and freeing up IT resources to deliver more excellent business value.

Common Questions

How is ITAD like Cloud Asset Management?

In many countries, the disposal of electronic waste is a shared responsibility between the organization and the ITAD vendor. The HAM must vet the vendor and monitor the vendor's performance throughout the contract term.

How is SAM like Cloud Asset Management?

SAM relies on the contract, the software license, to manage the compliance requirements and entitlements of the software. A poorly written license agreement makes managing compliance more difficult. The same is valid for cloud assets. SAM also monitors compliance and cost usage, similar to managing cloud assets.

How is SAM not like Cloud Asset Management?

SAM's primary focus is managing a product, whereas CAM's primary focus is managing a service and a product delivered as a service. The emphasis on managing a service means managing the service provider throughout the lifecycle of the service asset. While vendor management should be part of the SAM program, vendor management usually occurs during the acquisition of the software asset. Even when there are services that accompany the software, the effort to manage the vendor typically falls short of what is required.

Why is FinOps not enough for managing cloud assets?

FinOps represents only one particular interest in the cloud asset, just as cyber security is another special interest. And, like cyber security, how do you monitor cloud spending if you do not have an accurate IT asset inventory? CAM manages the entire lifecycle of the cloud asset and beyond, starting with the need. CAM ensures that FinOps is involved in all phases of the cloud asset's lifecycle, just as it does for IT, cyber security, legal, and the end users. In short, CAM makes FinOps better.

Why do you need Cloud Asset Management or any type of asset management for cloud assets?

First, one may think while you outsourced IT operations, you also outsourced ITAM, but the opposite is true. Your organization has inherited another ITAM program to manage – the CSP's. Second, cloud services are ubiquitous as smartphones allowing anyone to use them. Easy access and use create significant organizational challenges regarding spending, value, governance, and cyber security. ITAM has always been a horizontal function and a core competency. Cloud Asset Management requires a professional department that can fill the gap between technology and the business.

What makes ITAM IQ's Cloud Asset Management certification courses the best choice for learning how to manage cloud assets?

ITAM IQ's training covers the entire lifecycle of the cloud asset and provides practical knowledge for managing cloud assets. The courses are not theoretical; rather they address:

• The key cloud management activities in every phase of the cloud asset's lifecycle
• How to compare and contrast cloud asset management versus other asset types 
• How to communicate the value of CAM to the organization, including IT and IT cyber security
• How to identify what should be expected from your cloud service providers and how to manage the vendor

Students leave the class with breadth and depth of knowledge of managing cloud assets that can be immediately applied to their organization's ITAM program.

Schedule a call with us to discuss more about this new discipline and check out our video below on Why Cloud Asset Management.