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Ghost Assets Are Costing You 25% of Your IT Budget – The Cost of ITAM Mistrust

Author: Jeremy Boerger, The ITAM Coach​

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A recent survey from WanAware, titled Closing the ITAM Confidence Gap: 2025 Survey Insights for IT Leaders, has a stark message: ghost assets are draining up to a quarter of IT budgets, yet confidence in asset data outside the IT department is abysmal. Nearly every IT leader trusts their asset visibility, but less than half of other teams do. This isn’t a minor audit hiccup. It’s a financial drain and security exposure that could derail operations.

Here’s what’s going on, why it matters, and how you can fix it before the next budget cycle runs dry.


Confidence Gap Is Real, and Costly

The survey results expose a growing divide in how departments perceive IT asset accuracy and governance:

  • 95% of IT leaders trust their asset data

  • Only 35% of business-side teams feel the same ITPro Today

  • 25% of total IT spending goes into managing ghost assets, assets that exist on paper but provide no value

  • Nearly 25% of IT teams still rely on spreadsheets and email to manage assets

  • 50% of IT managers report asset-related disruptions, while only 9% of non-IT staff sense the same level of impact

That kind of disconnect puts budgets, projects, and security at risk.


What Are Ghost Assets, and Why They Stick Around

Ghost assets trap value in systems that are no longer in use. These phantom costs come from various sources:

  • Forgotten cloud instances or inactive VMs still accruing costs

  • Unused SaaS subscriptions with no checks on renewal

  • Devices that were replaced or decommissioned but never removed from inventory

  • Licenses still recognized in contracts even after systems change

When teams don’t trust the data, they skip clean-up and “paper over” the risk. That explains why IT Leaders think their inventory data is so good while IT Practitioners reported they know better.  And that’s how leadership is continually surprised by a 25% budget hit every year.


The Real Risks of Poor Visibility

Lack of visibility doesn’t just cost money. It creates real operational and strategic challenges:

  • Budget waste from unnecessary renewals or infrastructure

  • Increased security threats, since unmanaged assets are rarely patched or monitored

  • Workflow disruption when no one knows who “owns” an untracked device or license

  • Poor alignment between IT, finance, and operations, leading to redundant efforts and misaligned priorities

It is not just a technical problem. It is a problem of communication and shared ownership.


How to Reclaim Control and Reduce Waste

The fix starts with trust and ends with precision. Here are where you can take action now:

Create a Unified Source of Truth

  • Consolidate asset data into a shared system, not just for IT but finance, operations, security, and leadership.

  • Replace spreadsheets with a centralized ITAM platform that integrates with finance and procurement and inventory.

Attack Ghost Assets Directly

  • Run discovery tools to locate unknown cloud instances and unused subscriptions.

  • Decommission hardware and services cleanly, with documented transfers of custody, and with asset owners notified.

Improve Cross-Departmental Trust

  • Host regular syncs between IT, business, and finance teams. Share dashboards and cleanup results.

  • Use simple dashboards, visibility is trust.

Automate Where It Saves the Most

  • Automate alerts for idle SaaS or inactive virtual resources.

  • Establish auto-remediation rules for dormant licenses or instances.


The Value of Expert Help

Fixing ghost assets and building trust isn’t something to scrap together one Friday afternoon. That’s where expert help adds real value.

I help teams:

  • Audit existing ghost asset costs and compute what that 25% drain means in dollars

  • Build clean, automated discovery and decommission workflows, with a focus on documented “chain of custody” and “certification of disposal”

  • Create dashboards that both IT and business teams can rely on

  • Establish governance that keeps the asset regime clean, aligned, and trusted

If your asset spend is slipping away unnoticed, or finance is starting to question why spend keeps rising, it is time for a disciplined approach.

Schedule a consultation or reach out here. Let’s bring your asset data back to life.


About Me

I am an ITAM consultant dedicated to helping teams eliminate waste, build reliability, and restore trust in asset management. My work focuses on making ITAM clear, actionable, and aligned with business outcomes. Let me help your team recapture lost budget and build a reputation for precision.


FAQ

How big is the ghost asset problem?
The survey estimates that up to 25% of IT spending goes to assets that no longer exist or offer no value.

Why do non-IT teams distrust asset data?
Asset tracking is often siloed in IT. Without shared systems or visibility, business teams see gaps, which erodes confidence.

Can automation really help for SMEs?
Yes. Even small teams benefit from discovery and cleanup tools when they eliminate manual tracking and human error.

What’s the first step to solving ghost asset waste?
Start with visibility. Audit what’s in use, and what isn’t, then align stakeholders around cleanup and ongoing governance.

 

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.

Did you miss my exclusive webinar “Future-Proof Your Technology Investments” featuring Kim Master from Netflix?

 

Click here to access the recording.


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Picture of Jeremy Boerger<br><a class="itam-title">The ITAM Coach</a>

Jeremy Boerger
The ITAM Coach

Jeremy Boerger has over two decades of experience within the Information Technology sector. His signature Pragmatic ITAM Method is used by major manufacturing, healthcare, and global financial institutions. It enables them to Spend Less On Software Without Buying Less Software.

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Buy The Book:

Rethinking Technology Asset Management

If you’re a business leader or an IT
executive who is tired of hearing:
This is just the way ITAM is.
Then this book is for you. Buy here:


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Picture of Jeremy Boerger<br><a class="itam-title">The ITAM Coach</a>

Jeremy Boerger
The ITAM Coach

Jeremy Boerger has over two decades of experience within the Information Technology sector. His signature Pragmatic ITAM Method is used by major manufacturing, healthcare, and global financial institutions. It enables them to Spend Less On Software Without Buying Less Software.

Categories

Categories

Recent Posts

Recent Posts

Subscribe to my blog

Buy The Book:

Rethinking Technology Asset Management

If you’re a business leader or an IT
executive who is tired of hearing:
This is just the way ITAM is.
Then this book is for you. Buy here:


Screen Shot 2022-03-31 at 9.31.11 AM

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