The new Flexera State of IT Asset Management Report 2025 paints a clear picture of where ITAM programs stand and where they are falling short. The results are mixed. On one hand, organizations are investing more in ITAM to manage rising costs, hybrid environments, and compliance pressure. On the other hand, visibility is slipping in critical areas, audits remain expensive, and collaboration across ITAM, cloud, and finance is inconsistent.
For businesses trying to balance budgets, compliance, and operational efficiency, this report offers valuable lessons. Let’s walk through the key takeaways and what you can do to stay ahead.
Visibility Is Declining When It Matters Most
One of the most concerning findings is that visibility into IT environments is getting worse. Confidence in having a complete, accurate view of IT estates fell again this year.
On-premises hardware and software tracking showed improvements
Cloud instance visibility sits at a lower level and SaaS tracking is still patchy
Bring-your-own-license (BYOL) remains a major blind spot, with less than one-third of organizations confident in their visibility
This lack of clarity is risky when cost control and compliance are under more scrutiny than ever.
SaaS Waste and License Complexity Keep Growing
Flexera’s research highlights that many organizations are spending too much on SaaS. Without proper tracking, costs balloon and usage is inconsistent.
35% of organizations report increased SaaS waste year over year
59% track SaaS usage, but far fewer actively reclaim unused licenses
Licensing complexity is the top challenge for software asset managers
Cloud and SaaS subscriptions continue to expand, yet governance and optimization are not keeping pace.
Audits Are Draining Budgets
Audit activity is not slowing down. Large vendors like Microsoft, IBM, and SAP continue to lead the way in enforcement. The report found:
Nearly half of organizations spent over $1 million on audit costs within the last three years
Some spent more than $5 million in a single year
Audit responses often require pulling resources from multiple departments, taking months to resolve
For many businesses, audits are now a recurring cost center rather than an occasional disruption.
Collaboration With FinOps and Cloud Teams Is Essential
The study makes it clear: ITAM cannot succeed in isolation. Organizations that align ITAM, cloud teams, and FinOps report stronger visibility and better financial outcomes.
44% of respondents say ITAM now works more closely with cloud teams
38% report increasing collaboration with FinOps
Unified reporting helps avoid duplication and improves accountability
When these groups work together, organizations reduce overspend, improve compliance, and manage costs more effectively.
Sustainability and ESG Reporting Are Rising Priorities
For the first time, sustainability appeared as a growing ITAM responsibility. Organizations are beginning to track energy use, emissions, and asset lifecycle impact.
Key points include:
Asset reuse and responsible disposal are now part of ITAM discussions
Regulatory frameworks such as CSRD in Europe are pushing organizations to report environmental metrics
Sustainability goals are aligning with cost savings, as extending asset lifecycles reduces both expense and waste
This creates an opportunity for ITAM to demonstrate value beyond compliance and cost control.
Actionable Steps to Strengthen Your ITAM Program
Here are some steps you can take from the 2025 findings:
Conduct a Visibility Review
Audit your ability to see assets across hardware, software, SaaS, cloud, and BYOL. Identify blind spots and close them with discovery tools or integrations.
Focus on SaaS Optimization
Reclaim unused licenses, consolidate redundant apps, and negotiate vendor terms based on actual usage.
Build Audit Readiness
Keep entitlement records organized, usage logs accessible, and audit response workflows documented. This reduces both cost and disruption.
Collaborate Across Teams
Set up recurring meetings and dashboards with FinOps and cloud teams. Shared accountability creates faster wins.
Integrate Sustainability
Track lifecycle data, extend device use, and report environmental impact. ITAM can drive both ESG progress and financial savings.
Why Work With an ITAM Consultant
The Flexera report shows that organizations are investing more in ITAM, but results are uneven. Many teams lack the time, expertise, or tools to close the visibility gap and reduce waste. That is where outside expertise makes the difference.
I help businesses:
Strengthen ITAM processes with practical, right-sized strategies
Prepare for and defend against costly vendor audits
Integrate ITAM with FinOps and cloud cost management
Turn ITAM data into financial and operational value
If your ITAM program feels stuck or underdelivering, now is the time to get expert support.
Schedule a call or reach out here. Together, we can build a program that saves money, improves compliance, and reduces risk.
About Me
I am an ITAM consultant dedicated to helping organizations gain clarity, reduce risk, and maximize value from their technology investments. From SaaS tracking to audit defense, I partner with clients to turn ITAM into a business advantage.
FAQ
How much are companies spending on audits?
Nearly half report spending over $1 million in the last three years, with some exceeding $5 million.
Where is visibility weakest?
SaaS and BYOL are the most common blind spots. Many organizations still lack consistent tracking in these areas.
Is sustainability really part of ITAM now?
Yes. With new regulations and ESG reporting requirements, ITAM is becoming a tool to track environmental impact alongside cost.
What is the biggest ITAM challenge in 2025?
License complexity and SaaS waste are the top concerns, followed closely by lack of visibility into cloud environments.
