ServiceNow: Common Misconceptions

Misconception #1 – Hardware Asset Management (HAM)

By far the most common area we see companies buying more ServiceNow than they need is related to Hardware Asset Management (HAM). ?Here is a recent post on the ServiceNow Community page that demonstrates this misconception.

While HAM may seem like a required license for IT Asset Management (ITAM), most businesses can achieve their desired outcomes without purchasing the additional licensing. Here’s why.

1. Core CMDB and IT Asset Management Features Are Sufficient

ServiceNow’s Configuration Management Database (CMDB) and IT Asset Management (ITAM) capabilities included in the ITSM license, already provide many of the essential functions required for tracking hardware assets including:

• Asset and Configuration Item (CI) tracking
• Asset lifecycle management (procurement, deployment, retirement). Includes Stockrooms, Transfers, Purchase Orders, Contracts and Mobile Asset Receiving.
• Integration with IT Service Management (ITSM) for incident and change tracking
• Customizable workflows to automate asset processes
• Ability to integrate with 3rd party tools such as Microsoft Intune + WorkspaceONE

For most organizations, these out-of-the-box features are more than enough to mature their existing processes and effectively manage all hardware assets without the added cost of HAM licensing.

2. HAM Licensing Offers Limited Additional Value

HAM licensing includes the following additions beyond the standard ITAM functionality including in ITSM licensing.

1. Hardware Normalization – scheduled jobs to update fields with normalized Product, Manufacturer, Model, etc.
2. Preconfigured Asset Lifecycle Workflows – Included workflows for RMA, Loaner, Restock, etc.
3. Improved Mobile App Features – My Locker feature.

Many of these capabilities can be replicated with standard CMDB and ITAM functionality or through simple ServiceNow configurations.

The primary benefit of HAM licensing is the pre-configured workflows for Asset Lifecycle.? However, most organization still require customization or modification to the preconfigured workflows to align with their business process.? Why pay for a license in perpetuity that simply provides a jumpstart to your ITAM journey? ?

3. Cost Considerations and Return on Investment

HAM licensing comes with a significant price tag, and the return on investment (ROI) is often difficult to justify for organizations that do not require its niche functionalities. Instead of investing in HAM, companies can allocate their IT budgets toward higher-impact areas such as:

• Enhanced automation and workflow design
• Expanding IT Service Management (ITSM) capabilities
• Integrating 3rd party asset management tools

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The bottom-line is that the features included in HAM are really only useful for highly complex asset environments, making it an unnecessary expenditure for most businesses.

Before investing in ServiceNow HAM licensing, organizations should conduct a thorough assessment of their actual needs. In many cases, they can achieve the same outcomes without purchasing additional licenses by optimizing their existing ITAM and CMDB capabilities, leveraging custom workflows, and integrating third-party tools.? By taking a cost-conscious and strategic approach, companies can ensure they are making the most of their ServiceNow investment without unnecessary spending.

Are you considering whether HAM licensing is the right fit for your organization? Let’s discuss how to maximize your ServiceNow capabilities without the additional costs!