ITAM and Cloud optimization
Mart Dufifie
Introduction
Today’s rapidly evolving IT landscapes present unique opportunities, but also new risks. This calls for an integrated approach to IT Asset Management (ITAM) and cloud optimization. The ITAM-Unit and CloudXcellence are joining forces to help organizations maximize the value of their IT investments while mitigating risks and avoiding unnecessary costs. This whitepaper highlights the strategic intersections between ITAM and cloud optimization and outlines how a combined approach leads to improved IT governance, cost reduction, and effective risk management.
IT Asset Management from a strategic perspective
ITAM is a mature discipline within IT (with an emphasis on IT governance) that focuses on managing IT assets throughout their entire lifecycle. This includes, among others, software, hardware, licenses, cloud resources, and Software as a Service (SaaS). ITAM plays a crucial role in cost control, risk management, regulatory compliance, and contractual obligations.
An effective ITAM policy begins with a current, complete, and centrally maintained overview of all IT assets within an organization. This enables organizations to determine which resources are actively in use, which are redundant, and where optimizations are possible. By centralizing the entire lifecycle management of IT assets – from procurement to decommissioning – organizations can make strategic decisions that reduce both costs and risks.
In addition, license management is an essential component of ITAM. Organizations must ensure compliance with often complex licensing terms while keeping the risk of audits in mind, and at the same time avoid unnecessary spending on software that is not (fully) utilized. Through the integrated approach of ITAM and other disciplines such as contract, security, and financial management, organizations can generate valuable insights that directly contribute to a more efficient IT strategy.
Risk management also plays an important role within ITAM. By setting up IT governance properly – with clear ITAM policies and processes – and by following international standards such as ISO/IEC 19770, organizations can protect themselves against compliance and financial risks.
Cloud optimization from a strategic perspective
Cloud optimization focuses on maximizing efficiency and reducing the costs associated with cloud usage within an organization. With the dynamic nature of modern IT environments and the rise of hybrid and multi-cloud architectures, reducing waste and improving the return on investment (ROI) of cloud initiatives has become increasingly complex. Although cloud usage delivers immediate value, it also brings challenges in managing resources, idle time, errors, and inefficiencies.
One of the biggest challenges – and a distinct area of attention in cloud usage – is cost management. Organizations often deal with unused or underutilized resources that generate unnecessary expenses, often without being aware of them. Through scaling up and down, continuous monitoring, and the use of mechanisms such as reserved instances (which allow for flexible instance sizing), organizations can achieve significant savings without compromising performance.
Beyond cost optimization, performance management is also essential. By continuously monitoring usage and applying techniques like automated scaling and shutting down of resources (such as virtual machines and databases), organizations can ensure optimal workload performance. This not only reduces costs but also enhances the user experience, increases efficiency, and lowers CO₂ emissions.
Security and compliance in the cloud form another critical focus area. With increasing regulations around data protection, it is essential that cloud environments comply with standards such as the GDPR and ISO/IEC 27001. By combining access controls, encryption, and automated checks, organizations can strengthen their cloud security posture and minimize risks.
Governance is also playing an increasingly important role in cloud optimization. By leveraging principles such as FinOps and performing detailed analytics, organizations can not only reduce costs but also better anticipate future demands on their cloud resources. Cloud usage and consumption patterns are evolving so rapidly that only automation can enable continuous improvement and support real-time decision-making based on actionable data.
Synergy between ITAM and Cloud Optimization
Although ITAM and cloud optimization are often viewed as separate disciplines, they share many strategic touchpoints. Both focus on cost management, IT governance, and operational efficiency. Traditionally, ITAM is centered around on-premise IT assets, while cloud optimization targets cloud-based assets. By combining these approaches, organizations can implement a strategy that covers both traditional IT assets and cloud instances. In practice, these two domains are still too often siloed, resulting in unnecessary costs.
From a financial perspective, ITAM supports the management of licensing costs and cost allocation within the organization, while cloud optimization focuses on resource allocation and the predictability of cloud usage and expenses. Together, these perspectives increase cost awareness throughout the organization, enable chargebacks, and help minimize overall spend.
In terms of governance and compliance, ITAM and cloud optimization are highly complementary. While ITAM ensures adherence to contractual obligations, cloud optimization helps meet the demands of IT security within dynamic cloud environments. Combining these disciplines allows organizations to reduce compliance risks and be better prepared for audits.
Looking at operational efficiency, ITAM and cloud optimization also reinforce each other. By integrating insights from both on-premise IT assets and cloud instances, organizations can make more informed decisions about migrations and resource allocation. Strategic ITAM frameworks provide a broader view of IT assets, and cloud is increasingly recognized within standards such as ISO/IEC 19770.
The relationship with SaaS
SaaS is an integral part of modern IT environments and brings both opportunities and challenges for ITAM. The rapid growth of SaaS usage calls for an approach that effectively manages the associated costs and risks, while also aligning with the organization’s long-term (IT) strategy.
From an ITAM perspective, SaaS presents specific challenges in license management. Unlike traditional licensing models, SaaS typically operates on subscription-based structures, which can lead to Shadow IT and unnecessary expenditures. Centralized management and monitoring of SaaS usage enable organizations to identify and optimize unused licenses (in the form of subscriptions). By gaining insight into the actual use of SaaS applications, organizations can assess which subscriptions are cost-effective and which can be cancelled or downgraded. This helps minimize waste and maximize the value of SaaS investments.
From a cloud perspective, SaaS also introduces challenges in capacity management. Rightsizing SaaS assets is often overlooked, resulting in avoidable costs. Compliance is another critical factor in SaaS management. Many SaaS services process sensitive data, making adherence to regulations such as the GDPR and ISO/IEC 27001 essential. Establishing mature ITAM practices with proper IT governance supports organizations in managing access, ensuring security, and meeting contractual obligations.
The rise of ESG and its impact on ITAM and IT Governance
With the growing global reliance on cloud services and their associated data centers, ESG (Environmental, Social & Governance) is playing an increasingly significant role. Organizations are facing rising pressure to identify, reduce, and report on the environmental impact of their IT infrastructures. This shift not only influences IT strategy – or even broader, business strategy – but also has a considerable impact on ITAM and IT governance within the organization.
Cloud providers and data centers are major consumers of energy. By gaining insight into the ESG implications of cloud usage, organizations can make informed decisions when selecting cloud services. It also opens the door to reducing the environmental costs of cloud operations. By optimizing cloud resources – such as minimizing unused capacity, adopting efficient cloud models, and using “green” data centers – organizations can reduce their own CO₂ emissions and contribute to more sustainable business practices.
From an ITAM perspective, integrating ESG helps manage the environmental impact of software and hardware assets. By optimizing IT assets or choosing alternatives from sustainable manufacturers, organizations can not only save costs but also demonstrate their contribution to environmentally responsible operations. This is especially valuable for organizations that report on their sustainability goals or prefer working with vendors committed to sustainable practices.
Governance plays a key role in integrating ESG criteria into IT strategies. By embedding ESG principles into IT policies and setting up reporting mechanisms, organizations can ensure regulatory compliance while becoming more future-proof. This approach not only supports compliance and cost-efficiency but also strengthens the organization’s sustainable brand image.
ESG legislation in the EU and the Netherlands
Attention to sustainability is rapidly increasing, as reflected in legislation within the European Union and the Netherlands. Organizations are increasingly required to integrate ESG measures into their strategies and report on them.
A significant milestone was the introduction of the Non-Financial Reporting Directive (NFRD). This directive obliges organizations with more than one thousand employees to disclose non-financial information, such as their environmental impact, social engagement, and governance structures. This reporting requirement enhances transparency regarding how organizations address sustainability and social responsibility.
The NFRD has since been succeeded by a stricter directive: the Corporate Sustainability Reporting Directive (CSRD). A broader range of organizations, including smaller publicly listed companies, are now subject to this directive. Moreover, the CSRD imposes more rigorous standards on how ESG information is collected and reported. Reports must comply with specific guidelines and are required to undergo external audits.
In addition, the wider EU Green Deal and the Fit for 55 package set ambitious targets for a climate-neutral economy by 2050 and a 55% reduction in CO₂ emissions by 2030. These policies encourage organizations to pursue sustainability initiatives, energy savings, and the use of green energy.
Within the Netherlands, ESG is also increasingly embedded in laws and regulations. Organizations are encouraged to invest in green technologies and sustainable solutions. Reporting obligations aligned with European legislation, such as those under the Dutch Annual Reporting Act (Wet op de Jaarrekening), now explicitly include sustainability.
For organizations, this means that understanding their ESG impact – such as that of IT assets or cloud usage – is not only essential for regulatory compliance but also presents opportunities. It contributes to more sustainable operations and strengthens the reputation as a responsible and socially accountable organization.
Collaboration between The ITAM-Unit and CloudXcellence
The ITAM-Unit is a consultancy firm offering a range of services in the field of ITAM, including training, assessments, policy and process development, audit support, and secondment. CloudXcellence is a leading monitoring software that provides unique insights and optimization recommendations regarding overall cloud usage, including performance and efficiency.
Through a joint approach combining ITAM governance, contract management, and license optimization with advanced cloud analytics and optimization capabilities, we deliver the right insights and advice to reduce IT expenditures and the environmental impact of cloud usage. We also assist in maximizing the utilization of IT assets, improving compliance and risk management, and overall advancing organizational maturity in IT.
Conclusion
The value of combining ITAM and cloud optimization highlights the importance of the collaboration between The ITAM-Unit and CloudXcellence for you as a customer. By merging two seemingly separate disciplines, a smart and future-proof approach emerges for organizations that want to design their IT landscape for maximum efficiency while minimizing costs and risks.
This delivers tangible benefits such as lower costs, improved efficiency, better control over IT governance, and an IT strategy aligned with the organization’s needs. Connecting traditional ITAM and cloud optimization is essential to be prepared for the future. For organizations aiming to make their IT infrastructure sustainable and agile, our approach offers simplicity and results within just a few days!
June, 2025