IT Visibility Is Declining as Pressure on Costs Grows: 2025 State of ITAM Report
Jeremy Boerger
Recognized Thought Leader in IT Asset Management * Creator of the Pragmatic ITAM Method * ITAM & SAM Coach * Bestselling Author * My Motto: Cut your Software Spend without Buying Less Software
IT teams worldwide are facing a familiar yet growing struggle. A new report from Flexera shows that even as budgets tighten and cost pressures mount, our visibility into assets and services is slipping. This makes it harder to optimize, secure, and support technology environments—and the gap is only widening.
But this does not have to be the story of your IT team. Let us dig into the top takeaways from the 2025 State of ITAM Report and show you how to turn shrinking visibility into an opportunity to build stronger ITAM practices.
Visibility Is Shrinking at the Wrong Time
The report highlights a simple yet critical fact: visibility into your technology landscape matters the most when you are trying to reduce costs. Yet, despite this need, overall confidence in complete IT estates has fallen from 47 percent to 43 percent year over year.
Here is a breakdown of where visibility is improving, and where it is not:
These numbers show that physical environments are becoming more transparent while cloud and SaaS assets are increasingly murky. That poses serious risks if you cannot see and manage what you are paying for.
Collaboration Between ITAM, Cloud, and FinOps Is Essential
With cost pressures increasing, organizations see collaboration between ITAM, cloud teams (44 percent), and FinOps (38 percent) rising to fill the visibility gap. This shift has become more than a trend—it is a strategic necessity.
By working together across teams, you can:
This kind of cross-functional teamwork is no longer optional; it sets the foundation for effective cost control and visibility. This is a key component of my book, The Pragmatic ITAM Method.
SaaS Waste and License Complexity Are Eating Budgets
The report shows that unmanaged SaaS subscriptions are wasting money, and the complexity of use rights in cloud apps is causing problems:
Without clarity into usage and licensing terms, organizations pay for what they do not use, risk compliance, and miss opportunities to redirect those funds to high-value projects.
Audit Spend Remains Alarmingly High
The financial strain is real. Nearly half of organizations (45 percent) have spent over $1 million on audit costs in the past three years In 2025 alone, 23 percent of respondents reported spending more than $5 million, up from 22 percent in 2024.
Top auditing vendors continue to be:
These are not anomalies. Without adequate visibility and governance, your company could be next to face costly audits.
Improved Asset Visibility Drives Savings and Security
While total visibility drops, improved coverage for on‑prem assets shows that focused efforts work. Bringing cloud, FinOps, and ITAM teams together provides clarity while enabling:
These outcomes feed directly into stronger financial and operational results.
Actionable Steps to Reclaim Control
Let us be clear: declining visibility should be a red flag, not a caveat. Here is where you can start to turn things around.
1. Conduct an ITAM Visibility Audit
Create a snapshot of your current asset visibility, including hardware, software, cloud, SaaS, and BYOL situations. Understand where you see everything—and where you do not.
2. Align ITAM with Cloud and FinOps Teams
Work with FinOps and cloud engineering teams to map costs, usage, and entitlements. Establish shared dashboards and regular reviews to keep visibility high and costs low.
3. Tame SaaS Sprawl
Track usage, identify redundant or underutilized subscriptions, and negotiate contracts based on what you use. License waste is budget waste.
4. Build Audit Readiness into Processes
Document entitlements and usage in a repeatable, traceable manner. Have your ITAM and SAM tools generate clear audit trails to reduce risk and speed responses.
5. Boost Visibility into Cloud Assets
Cloud instances and BYOL packages are blind spots. Integrate cloud provider APIs and implement discovery tools to capture these environments.
6. Measure and Communicate Outcomes
Show how visibility improvements drive savings, reduce risk, and support strategic objectives. Share dashboards with leadership to keep ITAM funded and visible as a key enabler.
Why You Should Reach Out
Even teams with limited resources can regain control by taking a structured and collaborative approach. I help organizations align ITAM, FinOps, and cloud teams to:
If your visibility feels incomplete or your cost pressures feel overwhelming, let us work together to build a clear path forward.
Schedule a consultation or send a direct message. I will help you build lean, effective asset management that supports your goals rather than holding you back.
About Me
I am an ITAM consultant who guides IT teams in reclaiming visibility over assets, rights, and spend—without adding undue complexity or cost. I specialize in helping organizations align ITAM with cloud and FinOps teams to drive measurable financial and operational impact.
FAQ
How much visibility do most organizations still lack? Only 43 percent feel fully confident in their visibility across on-prem, SaaS, and cloud environments.
What is driving rising licensing costs? Cloud license complexity and unmanaged SaaS usage are key factors, now at the top of concerns for SAM teams.
Can small IT teams handle this? Yes. Visibility can be restored incrementally by focusing on highest-value areas and collaborating across teams. But it will take time and effort, both of which small teams might not be able to spare.
How do we measure ROI on regaining visibility? Track SaaS license recovery and redeployment efforts as cost avoidance, chart SaaS feature-sets with actual usage data to identify license cost reduction, and track the over/under on initial audit penalty projections with the actual, negotiated payout.
Reclaim your visibility and control. It is time to stop losing sight of your IT assets and start realizing their full value.