So many organizations these days just don’t need (or can’t financially justify) an investment in in-house IT departments managing services, devices, and security threats. But you also can’t function today as a business or organization without some technical expertise; the IT environment is complex and always changing. MSPs provide expert support with the ability to quickly scale, adapt, and respond to evolving compliance, cybersecurity needs, user demands, and technology.

Overview of Managed Service Provider Market

The current IT landscape requires expertise in an expanding range of services, and very few smaller organizations have the resources or personnel to handle it effectively. While size is not the only factor that determines use, it generally holds true that the smaller your organization is, the more likely it is to engage with an MSP to handle services you would otherwise be unable (or even unwise) to provide in house.

By outsourcing tasks like cloud and SaaS management, device and user controls, compliance, and security services to an MSP, businesses get the benefit of specialized knowledge, skills, and automated technology that can help fill in their tech gaps and maximize their IT spend.

Definition and Role of MSPs

Managed service providers act like an extension of an IT team — but there’s a big difference in how they operate. While traditional IT services are reactive, responding to user or network issues as they’re notified of them, MSPs are proactive with a focus on preventing issues from happening in the first place.

MSPs provide active network monitoring, data center and services management, security solutions, and keep up to date with the latest compliance regulations. With an MSP, your IT department will gain a lot more flexibility, reduced downtime, and confidence knowing that operations will run smoothly.

Importance of MSPs in Today’s Business Landscape

MSPs are becoming increasingly critical across all industries for organizations of all sizes. Large organizations with complex compliance and security needs like finance and healthcare benefit from an MSP’s active monitoring, advanced cybersecurity, and ability to adapt quickly to new regulations. Small- and medium-sized businesses (SMBs) can take advantage of top-tier IT services and support without the expense of hiring an in-house team.

As the working world continues migrating to the cloud, MSPs ensure that the transition is secure and provides more efficient technology solutions moving forward.

Key Market Statistics and Figures

Recent surveys show that use of MSPs is growing, with security at the top of the list for many organizations.

• Almost 90% of SMBs currently use an MSP to handle some of their IT needs or are considering it.
• 78% of organizations view MSPs as a solution for Internet of Things (IoT) management.
• Roughly 60% of large organizations across the globe use MSPs to streamline IT and cloud services.
• 60% of respondents said cybersecurity was the top challenge, which led them to partner with an MSP.
• 48% cited device management and migration to remote work as areas MSPs could handle better than traditional IT.

Managed Services Market and Growth Trends

The use of MSPs is growing due to cost benefits, more predictable budgeting, and scalability. The latest trends in technology are mirrored in the managed services market, with cybersecurity, AI tools, and cloud services leading the way.

Global Market Size and Projected Growth

The MSP market is growing in 2024 and shows no signs of slowing down anytime soon. The market is expected to reach almost $350 billion globally by the end of the year and soar to over $1 trillion by 2033, at a CAGR of 12.9%.

Key Trends Driving Market Expansion

Security, adoption of cloud technologies, and automation are areas where MSPs excel over traditional IT departments.

MSPs enhance security through continuous network and data monitoring, password management and passwordless login technologies, device management, and improved compliance. Many MSPs provide advanced data backup and disaster recovery solutions that significantly shorten recovery time in the event of a breach.

MSPs utilize automation to streamline operations and manage resources better. They make repetitive tasks more efficient and remove the risk of human error that can lead to security holes or extended outages.

With cloud operations expanding and many organizations relying on multi-cloud environments, MSPs consolidate management and provide infrastructure to deploy multiple services efficiently.

Regional Market Analysis and Differences

These are the key statistics as organizations implement MSPs across the globe:

• With the U.S. driving demand, North America makes up the largest share of the MSP market, expected to grow at a CAGR of 12.2% by 2033.
• Europe is the second-largest region, with a CAGR of 12.5% by 2030.
• Asia is the fastest growing region for MSPs.

Economic Impact of MSPs

Most organizations using MSPs feel a major economic impact.

MSPs increase productivity by making IT operations more efficient and secure, allowing businesses to apply funds that would be spent on internal IT teams to other needs. Advanced single sign-on (SSO) and device management technologies improve the experience for all users and make it more likely that protocols will be followed.

The advanced cybersecurity features of MSPs prevent breaches and can potentially save millions in legal fees, fines, and ransoms.

Cost Savings and Efficiency Improvements

By teaming up with an MSP, organizations can contract for the specific services they need rather than having to hire, build, and train an entire in-house IT team. With technology and compliance changing faster than ever, the use of an MSP makes it much easier to keep up, without the cost of additional personnel or certifications.

The tools used by MSPs are leveraged across their client base, making it more cost-effective to develop advanced technology that makes systems more efficient and secure.

Research shows that organizations using MSPs experienced significant savings.

• Organizations that contract MSPs can reduce overall IT costs by 20-30%.
• MSPs increase productivity by 15-25% through improved efficiency and reduced downtime.
• MSPs reduce the risk of cyberattacks by up to 50%.

Revenue Generation Areas for MSPs

MSPs create value by providing advanced technology solutions for business.

Many of the services they provide wouldn’t be financially or logistically feasible with an in-house IT team. With highly trained specialists dedicated to areas like network and user management, cloud services, data protection, and cybersecurity MSPs can devote more time and resources to developing technology that makes online environments more productive and secure.

Because MSPs work at scale they can partner with a wide variety of clients, opening up revenue streams to build and maintain their own services more efficiently than any individual in-house IT team.

Comparison of In-House IT vs. Managed Services

In-house IT teams and MSPs vary in a few key ways. By understanding the differences, you can see how to leverage both to get the most out of your IT services.

In-house IT teams tend to be better at daily operational tasks and supporting unique environments and requests. They can be faster to respond to some issues that are specific to the organization, but overall their response times are slower to systematic issues like breaches or misconfigurations. Generally, they’re also slower to adapt to emerging cyberthreats and compliance changes. Some of the biggest challenges in-house IT departments face are scaling, budgets, and skills shortages.

MSPs excel when it comes to security and scalability. Technologies like continuous monitoring save on salaries and unexpected costs like breaches or compliance management. They can also detect and manage misconfigurations faster. All of this reduces downtime and leads to faster fixes, for a more secure and productive work environment. Most MSPs offer flexible payment structures so that organizations can take advantage of advanced services without breaking their budgets. While MSPs do provide a lot of economic advantages, it can be more challenging for them to handle one-off projects or unique requests.

Market Segmentation and Services Offered

Some MSPs specialize in a specific service, while some offer a full range of combined services. Some MSPs offer a suite of services in a customized package to address specific client needs like compliance, network management, or device management.

Breakdown by Service Type

There are three main services that MSPs provide. Managed network services (MNS) focus on maintenance and management of network systems and hardware, as well as providing IT support to keep technology current and services operating steadily. Managed cloud services (MCS) manage and optimize cloud services, which could include user management and security, deployment, and unification. Managed security services (MSS) detect threats, manage firewalls, and handle endpoint security and data encryption. They also make sure systems are compliant with the latest regulations and privacy laws. Managed security is currently the most in-demand service due to increasing threats in the cybersecurity space.

Deployment Models: On-Premises vs. Cloud

When working with an MSP, you’ll need to know the best way to deploy services for your organization.

On-premises solutions give your organization the most control over your IT infrastructure. With this approach, sensitive data is stored and managed on-site at the company. This can be a great model for organizations that have strict security and compliance needs. However, on-premises deployment can take a lot of investment and can be costlier to update and maintain.

Cloud deployment is extremely flexible and scalable, providing your organization with a much greater degree of adaptability at a lower cost. Cloud providers host data and services remotely, which reduces the need for in-house staff, hardware, and maintenance. Some organizations might be hesitant to use cloud deployment due to their security needs.

For some organizations, hybrid models are the most effective model of deployment. In a hybrid environment, sensitive data is administered on-site, while less critical functions like SaaS management are handled by the MSP remotely. Though hybrids can provide the best of both worlds, they’re more complex to manage and require specialized IT skills.

Industry-Specific Solutions and Verticals Served

There are MSPs for every type of organization. Fields like finance, government, and healthcare benefit from MSPs that focus on cybersecurity, compliance, automation, and monitoring. Retail and manufacturing use MSPs to optimize supply chain management, IoT integration, and analytics.

Future Outlook for Managed Service Providers

MSPs will continue to play a major part in IT moving forward. As technology evolves, regulators issue new laws to protect consumers, and cybercriminals deploy AI and advanced tools, MSPs will be critical to ensuring organizations maintain their systems and data. MSPs will develop new ways to maximize efficiency and safety that influence IT protocols across the industry — and to do that they’ll also need to find new ways to support their own business.

Emerging Trends and Technologies

MSPs have already started to expand into new technologies like AI, blockchain, and IoT to enhance the services they provide.

AI automates processes that help tighten security by detecting threats faster and making fixes more effectively. MSPs also improve predictive analytics to identify issues earlier and reduce downtime.

MSPs are exploring blockchain technologies to enhance cybersecurity and data integrity. Using decentralized technology like blockchain can make networks more secure against attacks by eliminating single breach points.

MSPs help integrate IoT devices across existing networks, and are using AI to find new ways to manage and analyze the data created by the influx of devices.

Now that hybrid and remote work models are the new normal, MSPs will need to keep building new tools that support remote environments. Cloud integration, unification, Zero Trust frameworks, and device management are all areas we can expect to see continued advances. Shadow IT is becoming a persistent threat and is often difficult for in-house teams to get in check.

Hyperconverged infrastructure (HCI) is a new development that uses intelligent software to bring storage, computing, and networking together under one umbrella and replaces legacy data management systems.

Challenges and Opportunities in the MSP Market

While MSPs continue to grow rapidly, there are a few challenges on the road ahead. As the market grows, the field will get more crowded with new players. This will create more competition among MSPs but could drive further innovations, but it also means MSPs will need to increase marketing efforts to stand out.

With cybercriminals using new technologies MSPs need to move fast to stay ahead of emerging threats to their clients and their own networks. Investing in cyberinsurance, new security tools, and hiring experts could drive up costs for MSPs.

Supplying new technologies like AI and blockchain will also require more investment and resources from MSPs. But with both SMBs and large organizations facing many of these same challenges, plenty of opportunities remain for MSPs to take on the increasingly complex tasks that other organizations can’t handle. As MSPs bring on additional clients, managing all of them together could pose its own challenge.

Strategic Recommendations for MSPs

If you’re an MSP, it’s all about filling in the technology gaps that other organizations don’t have the time or the resources for.

Identifying industry needs hones focus on the areas organizations are concerned about taking on. Cybersecurity is a huge concern for organizations across the board right now, and many are counting on MSPs to provide a solution. Monitoring and automation technologies are areas that can give businesses a big boost in efficiency. Migration to cloud services is an area that creates a lot of challenges for in-house IT teams.

MSPs can build stronger relationships with clients by providing solutions to the problems traditional IT can’t deal with effectively.

By partnering with cloud-based platforms or other providers, MSPs can expand their services and streamline their own operations to provide cost-friendly options for all of their clients.

By keeping current to take advantage of trends and staying ahead of emerging cyberthreats, MSPs will continue to be a valued component of every organization’s IT infrastructure.

Learn More About JumpCloud for MSPs

See how JumpCloud for MSPs enables you to give your customers a seamless, secure IT experience from a single open directory platform.

Digital platforms make work more productive, collaboration and communication easier, and user experiences more intuitive and interactive. But as our lives get more concentrated online, technology also makes it a lot easier for hackers and scammers to find new targets.

Cybersecurity pros and cybercriminals are pitted against each other in a constant race to see who can deploy emerging technology faster. Business leaders, workers, and individuals are often unaware of new threats or technologies that can be turned against them — making it even more important for cybersecurity teams to retain an advantage.

Knowing the trends is a key first step to keeping your data secure. Let’s take a look at the cybersecurity statistics and trends shaping 2024, including persistent threats and evolving dangers.

Editor’s Picks: Cybersecurity Statistics

• The cybersecurity market is expected to grow to $300 billion this year.
• Cloud environment attacks increased by 75% between 2023 and 2024.
• 70% of cybersecurity pros say their organization is affected by a shortage of skilled IT employees.
• Over 90% of successful breaches utilize known vulnerabilities that are left unpatched.
• Identifying and containing a data breach takes an average of 277 days.
• The average security budget of small businesses is $500, while the average cost of a data breach is almost $5 million.
• Hackers find new vulnerabilities every 17 minutes.

Common Cybersecurity Threats in 2024

Cyberattacks are on the rise in 2024 with the increasing use of cloud platforms and AI opening up new ways for bad actors to exploit systems. Many organizations, especially small businesses, are slow to implement security enhancements like multi-factor authentication and passwordless authentication. Cybercriminals continued to rely on methods like phishing, ransomware, and malware. New weaknesses were exposed by attacking IoT devices and hackers using deepfakes to gain an advantage over users.

Types of Cyberattacks

Hackers are always looking for new vulnerabilities, but human error is still the number one way for them to gain access to systems — either through social engineering or poor security habits.

• Over 75% of attacks start with a phishing email.
• Over 90% of malware is delivered via email.
• 17% of attacks are launched on web applications.
• Up to 88% of data breaches are caused by human error.
• In tests conducted by IBM X-Force, security misconfigurations make up 30% of web application vulnerabilities.
• 85% of cybersecurity pros identify generative AI as the cause behind the increase in attacks in 2024.

Now let’s break down the numbers for the most common attacks.

Phishing

Internet users are more aware of phishing than they’ve ever been, but criminals keep finding ways to make phony emails look more realistic, especially by exploiting new tools like AI. 

• 96% of phishing attacks are carried out using email.
• 30% of small businesses identify phishing as the biggest threat to their data.
• Phishing attacks have increased by over 1,000% as a result of generative AI.
• Almost 60% of organizations report daily and weekly phishing attacks.
• 50% of people who were tricked by a phishing attack say it was because they were distracted or tired.
• Hackers faked emails from Microsoft in over 40% of phishing attempts.

Ransomware

Incidents of ransomware hit an all-time high in 2024, with the trend of Ransomware as a Service (RaaS) platforms enabling new wave of criminals with minimal technical skills.

• Over 60% of attacks on government agencies involve ransomware.
• Ransomware is deployed in 80% of cyberattacks on retail companies.
• Almost 50% of organizations have a ransomware payment policy in place.
• Less than 10% of businesses who met the demands of hackers and paid a ransom got all of their data back.
• Paying a ransom makes it up to 80% more likely of additional attacks in the future.
• 25% of consumers will stop using a product that has been a victim of ransomware.

Distributed Denial-of-Service (DDoS)

DDoS attacks reached fierce new levels this year, as the most powerful offensives reached speeds of almost 2 Tbps. Computer software, IT service providers, gaming, gambling, and casinos, and media companies were the top five industries targeted by DDoS attacks.

• DDoS incidents rose 46% in the first half of 2024 compared to the same period in 2023.
• Russia led the way in blocked IP addresses with over 8.2 million.
• The U.S. was next in line with over 3 million IP blocked addresses.
• China finished third with 1.4 million blocked IP addresses.
• Attacks that lasted over three hours surged 103% this year.
• DDoS attacks against cryptocurrency firms soared over 600%, compared to a rise of 15% over all other organizations.
• The 911 S5 botnet was dismantled by the FBI in 2024, after it infected over 19 million devices globally over the course of its lifetime.

Malware

Advances in AI helped hackers create more sophisticated malware that evolves on the fly to evade security systems. AI also aided in creating more realistic phishing bait to lure users into launching malware programs.

• 560,000 new malware programs are exposed daily.
• There are over 1 billion malware programs that exist globally.
• Between 2023 and 2024 malware attacks increased by 30%.
• 48% of organizations have had data stolen by malware.
• Android devices are 50 times more likely to be vulnerable to malware than iOS devices.
• Word, Excel, and PDF files are the most common vectors to spread malware via email.
• 58% of malware infections are launched by Trojans.
• China has the highest number of computers infected with malware.
• The U.S. is the top target for malware attackers, getting hit with 900% greater frequency than the number two target U.K.

Advanced Persistent Threats (APTs) 

APTs use the most advanced tools to avoid detection and remain inside systems to steal information and sabotage long-term operations. They’re often deployed in high-stakes attacks against governments or major organizations. 

• Attacks against the supply chain increased significantly in 2024, making up 17% of APT incidents.
• AI models like WormGPT and FraudGPT are increasingly being used by bad actors to launch APT spear-phishing attacks.
• In 2024 hacktivists are estimated to have been responsible for up to 10% of APT attacks, compared to only about 2% historically. The increase is connected to the rise of geopolitical conflicts.
• It’s estimated that 60-70% of APT attacks are focused on espionage.

Man-in-the-Middle (MITM)

In a man-in-the-middle (MITM) attack, hackers intercept data as it’s exchanged between two parties. This type of breach is usually done over an unsecured Wi-Fi network or through spoofing IP addresses, login pages, or other legitimate access points. 

• MITM attacks are responsible for 19% of successful cyberattacks this year.
• MITM compromised emails have increased by 35% since 2021.
• Internet of Things (IoT) environments and smart devices are being targeted more frequently by MITM attacks. 

Insider Threats

An organization is only as secure as the people inside of it. Some insiders make honest mistakes, some are negligent, and others intentionally defy rules. To combat individual vulnerabilities more companies have looked to IT unification strategies turned to Zero Trust policies.

• Insider threats are responsible for almost 43% of all breaches.
• Roughly 50% of insider threats are considered accidental, and the other 50% intentional.
• 80% of employees admit to using shadow IT SaaS applications without approval.
• 65% of organizations have implemented Zero Trust models to improve access management and compliance.
• Companies using conditional access strategies save $1 million or more on costs related to data breaches than companies without Zero Trust policies in place.

Emerging Cyberthreats

New threats that surfaced in 2024 were driven by a rise in geopolitical tensions, hackers weaponizing AI tools, and new technologies providing novel attack vectors for thieves to exploit. 

State-Sponsored Attacks

Specific events like the Paris Olympics and U.S. elections contribute to the rise of state-sponsored attacks. With the recent surge in armed conflict, expect cyber operations by enemies and allies to expand across the globe.

• China, Russia, North Korea, and Iran have all been identified as a cause of cyberattacks on the U.S. and its allies.
• Online attacks in Ukraine have increased over 300% since the start of the war with Russia in 2022.
• During the Israel-Hamas conflict DDoS attacks against Israeli websites have increased by 400%, while DDoS attacks against Palestine increased 60% within the first two days of the conflict.

Unsecured Internet of Things (IoT) Devices

Increasing adoption of smart devices, medical devices, and home systems give cybercriminals new targets to aim for every day. This year, security researchers demonstrated how MITM attacks could be used to unlock, start, and steal Tesla vehicles through the Tesla phone app.

• Organizations are expected to invest up to $15 trillion in IoT by 2025.
• IoT devices are usually attacked five minutes after getting online.
• 48% of businesses say they are unable to detect IoT security breaches on their network.
• Routers are the point of entry in almost 75% of IoT attacks.
• 98% of IoT traffic is not encrypted.

Deepfake and Emerging Technologies

Cybercriminals are using deepfakes to make scams more effective, even against the savviest users — making it one of the fastest-growing facets in online crime.

• 64% of surveyed IT pros predict an increase in deepfake attacks over the next 18 months.
• 75% of organizations reported at least one deepfake-related security issue during the past year.
• Deepfake fraud skyrocketed over 1,700% in North America last year.
• 73% of organizations plan to invest in training to identify deepfakes.
• 52% of employees who fell prey to a phishing link believed the email came from a C-suite executive at their organization.

Cryptojacking

Bad actors hijack business and personal devices, then configure them in a network to mine cryptocurrencies. 

• Cryptojacking attempts increased almost 400% in the last year.
• Healthcare and education were the hardest hit by cryptojacking. Healthcare experienced an almost 700% rise. Education organizations were hit with 320 times the number of attacks as the previous year.
• It’s expected 13.5 million users will be compromised by cryptojacking this year.

Incidence Rate Statistics

New technologies and motivations lead bad actors to launch attacks against all types of institutions and individuals. 2024 is expected to be the costliest year for cybercrimes yet as incidents continue to rise.

• Data breaches exposed over 7 billion records in the first half of 2024.
• In 2023 over 7 trillion intrusion attempts were reported, 20% more than 2022.
• There was a 71% year-over-year increase in attacks that used stolen credentials.
• 50% of all known vulnerabilities have been published in the last five years.
• The National Vulnerability Database reported over 30,000 new intrusion points were discovered last year.

The Cost of Cybercrime

The worldwide cost of cybercrime is expected to hit $9.5 trillion in 2024 and rise an additional $1 trillion through 2025. In addition to the high price of attacks, ransoms, and lost revenue, affected organizations also face recovery expenses, regulatory fines, and reputational damage that leads to a loss of customers.

Financial Impact on Businesses

It’s well documented that cyberattacks cost businesses millions per incident. Defenses are never foolproof, but strong security policies and mitigation plans can limit damage and save organizations a significant amount of money in the event of a breach.

• In 2024, recovery from ransomware attack costs an average of $2.73 million.
• $17,700 is lost every minute due to phishing attacks.
• Enterprise organizations spend $2700 per full time employee per year on cybersecurity.
• Hospitals spend 64% more on advertising after being exposed in data breaches.
• In 2024, cybersecurity spending is expected to increase 8% to $87 billion in the U.S.
• Cyber insurance premiums cost U.S. organizations over $12 billion this year.

Economic Consequences

To protect consumers and promote cybersecurity, governments are creating stricter privacy and data laws that come along with major consequences for business. The EU’s General Data Protection Regulation (GDPR) is seen as the model legislation for many countries moving forward.

• Meta was fined $1.3 billion for violating GDPR regulations in 2023.
• TikTok was fined $379 million for failing to protect the data of minors.
• 94% of U.S. companies are not prepared to comply with GDPR requirements.
• 78% of organizations expect increases in regulatory compliance.

Notable Cybercrime Cases

Data breaches are on the rise since 2022. Here are some of the cyberattacks that have made headlines so far in 2024.

• A ransomware attack disrupted operations in the Change Healthcare system for weeks. The company is said to have paid a $22 million ransom, and congressional testimony revealed the attack may have affected up to one-third of all Americans.
• X (formerly known as Twitter) was hit with an attack that exposed the personal information of 235 million users.
• MGM Resorts suffered a data breach that compromised over 140 million records, including sensitive customer information. The estimated cost of the breach was $15 million.
• LoanDepot fell to a ransomware attack that exposed the data of 16.6 million customers and resulted in a class action lawsuit. In total, the incident cost the company almost $27 million.

Cybersecurity Jobs and Career Outlook

With cybercriminals getting bolder and expanding operations every year, cybersecurity is one of the fastest-growing fields. Currently it’s estimated there are 4.7 million security pros, but nearly two-thirds of industry leaders believe their security teams are understaffed. Education and hands-on experience are key to staying ahead of malicious actors.

Demand for Cybersecurity Professionals

Organizations from small businesses to enterprise companies to government institutions are making it a priority to expand their cybersecurity operations.

• 93% of organizations expect to increase cybersecurity spending in the next year.
• 70% of organizations say their IT teams are understaffed.
• According to Cybersecurity Ventures, there will be over 3 million unfilled cybersecurity positions globally in 2025.
• In 2023 the unemployment rate for cybersecurity professionals was near 0%.
• The growth rate for tech jobs is almost double the rate for all jobs during the next decade.

Career Opportunities and Salary Trends

Cybersecurity offers skilled professionals plenty of opportunity. 

• Information security analyst positions are expected to grow 33% from 2023 to 2033.
• Chief Information Security Officer (CISO) salaries averaged over $170,000 per year in 2022.
• The median salary for security analysts is over $100,000 in 2024.
• Salaries for entry-level roles in cybersecurity average over $60,000.

Secure Your Environment With JumpCloud

JumpCloud deploys multiple strategies to help secure your environment. Explore more to see how JumpCloud can be part of your cybersecurity solution with SSO, password management, and system insights that keep you informed of everything going on with your network. 

Sign up for a free JumpCloud account to see how we can get you to your cybersecurity goals. By teaming up against bad actors, we can make a positive impact on cybersecurity trends.

Maintaining an organized set of IT assets is a continuous challenge. If users can’t easily find the assets they need, production bottlenecks may occur. If your IT team can’t keep track of what the organization is paying for, cost inefficiencies pile up. And if you don’t know what’s on your network, you can’t ensure that your network is secure. All of these unknowns make it hard to optimize your resources and make good decisions.

To manage your IT asset inventory effectively, you must first identify all the assets your organization has. This process is called discovery, and it’s the first step toward optimizing IT asset management (ITAM) for security and scalability.

IT Asset Discovery Definition and Importance

IT asset discovery is the process of identifying and organizing all the IT assets an organization uses. The result is a full inventory of software applications, databases, physical devices, cloud services, and more. This crucial first step is vital for pursuing a successful ITAM strategy.

Key Components of IT Asset Discovery

The process of IT asset discovery typically relies on a purpose-built software tool. The tool scans your network looking for individual assets and their specifications. Then it categorizes them according to those characteristics.

Some of the basic categories you may sort IT assets into during the discovery process include:

• What assets need management. Assets should be categorized according to their type. For example, mobile devices and endpoints may be in a separate category than software licenses.
• Where assets are located. Knowing where assets reside is a key goal of IT asset management. The question of “where” applies equally to physical geography, business function, and software environments.
• How assets function. This important component lets you define interdependencies between assets. For instance, you may group software licenses with the drivers necessary to run the software.

Examples of IT Assets

Anything that has value to your organization is an asset. IT assets are a subcategory focusing on how you process and communicate information through technology. This can include a broad range of items in a modern enterprise context.

Hardware Assets

Desktop workstations, laptops, servers, and smartphones are all examples of hardware assets. Peripheral devices like printers and smart displays are also part of this category. 

These are all physical devices that occupy a unique place in your network. Practically every device with a MAC address can be treated as a hardware asset.

Software Assets

Software assets include mobile, desktop, and cloud-based applications. This category also includes things like browser extensions and digital certificates. When it comes to Software-as-a-Service applications, both the SaaS solution and your licenses to use it are software assets, as well. 

Depending on the specifics of your organization, you may also treat intellectual properties as software assets. For example, the codebase of an application under development is a high-value IT asset distinct from most other types of software.

Virtual and Cloud Assets

Virtual machines, cloud instances, and serverless functions are all examples of cloud assets. These are similar to software assets, except that they exist independently of your in-house IT infrastructure. That gives them unique characteristics that merit special categorization.

Network Devices

All of the equipment your organization uses to maintain its network infrastructure — like routers, switches, and firewalls — also count as IT assets. These devices operate on your network and play an important role in ITAM, especially from a security perspective. 

IT Asset Inventory List

Creating an inventory list of your organization’s IT assets is the first step toward managing those assets effectively. This list can take many forms. Startups and small businesses may start by tracking assets in a document or spreadsheet; however, as they mature their ITAM program, they should look for a more sophisticated and robust asset management solution. Large enterprises must also use a dedicated database augmented with robust synchronization features.

Importance of an Inventory List

Your IT asset inventory list plays a major role in compliance. If your organization faces a financial or IT audit, it will have to access data on its entire inventory of IT assets. This applies both to organizations pursuing voluntary compliance frameworks and to those required to keep track of IT assets by law.

Beyond compliance, having comprehensive, up-to-date information on your organization’s IT assets also helps optimize operations and security. Good management boosts productivity and prevents loss. It empowers management to make better decisions and avoid business disruption.

How to Create an Effective IT Asset Inventory List

It’s important to create your IT asset inventory list according to a detailed plan. Take time to define your scope and objectives before looking for asset discovery tools. The ideal solution for your organization may be different from other organizations in your field. 

While startups and small businesses may create IT asset inventory lists manually, the needs of the modern enterprise require automatic discovery. Even a modestly growing organization will quickly find that manual processes can’t keep up.

There are two basic types of automated asset discovery tools:

• Agentless discovery tools rely on network protocols to discover IT assets. This tool sends out polls that interrogate connected assets about their identity and configuration. This is an active technique that requires pre-configured assets. For example, you may need to activate SNMP on newly connected devices so the agentless tool can recognize it.
• Agent-based discovery tools use a passive approach. You start by installing a client agent on every IT asset in your network. This agent sends data to your ITAM platform. This offers more information then the agentless approach, but it comes with higher maintenance costs and overhead.

Your preferred method of building an IT asset inventory list will influence your ability to tag and label assets effectively. Ideally, your organization will implement an automated system for issuing asset tags. Otherwise, you may manually have to complete that task. In either case, your team will need extensive training on your new asset management policies.

Features of IT Asset Discovery Tools

Both agentless and agent-based IT asset discovery tools work to achieve the same results. Both simplify the process of gaining visibility into IT infrastructure. They often go about it in similar ways, too. Here are three main features that your IT asset discovery tool should have:

Automated Scans and Updates

Automatically detecting connected devices and software is the main goal of asset discovery. To do that, your asset discovery tool must scan your entire network looking for devices and software. It can then identify these assets and report on their configuration.

Updates are also an important factor of IT asset discovery. These tools need to accommodate new devices and software as it hits the market. That means receiving updates showing how to identify new assets. High-quality scanners from reputable vendors generally take care of the update process autonomously.

Real-Time Monitoring

IT asset discovery is not a one-time task. Your organization will continue growing and changing over time. It will provision new assets, onboard new users, and deploy new technologies. You should not have to manually run IT asset discovery on a regular basis to accommodate these changes.

Instead, your scanning tool will run automatically in real time. When new devices are connected to your network, it will detect and gather data on them. This gives your IT team real-time visibility into your IT infrastructure and helps you maintain a robust security posture. If unauthorized devices or rogue assets are connected to your network, you should know about it quickly.

Comprehensive Reporting

Many organizations pursue IT asset management for compliance purposes. Your asset discovery tool should issue compliance reports that serve this goal. These reports demonstrate that your organization adheres to specific compliance requirements and consistent internal policies.

To generate these reports, your IT asset discovery scanner will need to create an audit trail as it scans your network. This allows you to compile documentation that shows how you detect and manage assets. Organizations pursuing GDPR, HIPAA, or SOX compliance must adhere to strict IT asset discovery regulations.

Benefits of IT Asset Discovery

The ability to track and categorize assets automatically provides a significant boost to efficiency and productivity. The larger and more complex your organization’s IT environment is, the greater these benefits will be. And if your organization plans to grow, establishing an asset discovery program as early as possible will help ensure your IT scales smoothly.

Enhanced Security

IT asset discovery can have a transformative impact on endpoint security. Without automated discovery, your security team can only detect newly connected assets through manual processes and proactive threat hunting. Gaining real-time visibility into your IT asset inventory enables faster, more accurate detection and response.

You can leverage the data generated by your asset discovery tool to improve operational security. For example, your insider risk team may wish to know how long a device under investigation has been in use in the organization. That data may not be available anywhere else. Your asset discovery scanner will tell you exactly when that device first appeared on your network — and where.

Improved Resource Management

The ability to easily map asset dependencies helps reduce the time and cost of asset maintenance. This improves your organization’s ability to manage resources that may otherwise be used wastefully. 

When configured correctly, your asset discovery tool can help you identify high-value assets nearing the end of their lifecycle. If your IT team prioritizes preventative maintenance for these assets, you can mitigate the risk of costly disruption when they fail. If the asset can’t be repaired, you may choose to proactively replace it.

Compliance and Risk Management

Many regulatory frameworks include IT asset discovery in their requirements. Others avoid specifically calling for automated discovery. Nevertheless, achieving compliance with these frameworks is often much easier with a full-featured asset discovery tool.

That’s because manual IT asset discovery processes are time-consuming and error-prone. Compliance frameworks generally want to reduce the risk associated with these kinds of activities. Implementing a robust, automated solution makes it far less likely that your team overlooks an important IT asset.

Cost Savings

Tracking your IT assets and understanding the relationships between them improves efficiency across the board. When leaders and managers have accurate information about their assets, they are better equipped to keep up with the organization’s changing needs.

This translates directly to increased cost savings. Investing in IT asset management reduces the risk of asset underutilization and feature duplication. It helps decision-makers accurately predict costs and identify ways to reduce them over time.

This is especially true when supported by a strong IT asset management strategy and combined with IT service management (ITSM) processes. These two concepts provide ample opportunity to reduce costs without compromising on quality or productivity.

How to Choose an IT Asset Discovery Solution

Before you can choose the right IT asset discovery solution, you must carefully assess your broader ITAM strategy. Understanding your short-term and long-term goals is key to finding the solution that delivers value.

Evaluating Your Needs

No two organizations have the same security risk profile, asset inventory, or growth strategy. Your choice of IT asset discovery solution is a reflection of your organization’s needs.

For example, your growth goals will determine how scalable you need your solution to be. If your organization has a large number of unregulated, outdated, or duplicate assets, you’ll need a robust, automation-ready solution built for visibility and policy enforcement. Organizations pursuing regulatory compliance may need specific features stipulated by regulators.

Key Criteria to Consider

When looking for an IT asset discovery tool, prioritize integrated solutions that provide a single source of truth for your entire tech stack. Conducting ad hoc integrations for unsupported devices and applications can quickly slow down the IT asset discovery process. It can introduce user experience friction and may even impact your security posture.

Discovering unmanaged applications and IT resources is vital to asset management and security. Simplify the process with a full-featured IT asset discovery and management platform with streamlined user provisioning, utilization monitoring, and access request management. JumpCloud can help you consolidate IT management and security through its simple and powerful open directory platform. Sign up for a 30-day free trial to find out more.

There is a lot to keep track of these days. Organizations face an array of challenges that can hit anywhere on the spectrum from the mundane to the existential. Heightened security concerns affect how tightly you control user access. The proliferation of devices adds complexity and bloat to your management stack. And almost every organization, regardless of size, is expanding its distributed workforce across global time zones and native languages. Getting this right falls to you as well.

Navigating these issues becomes even more daunting when the tools IT admins and managed service providers (MSPs) spread out among many point solutions. This tool sprawl adds extra time, effort, and complexity to your day, and it makes delivering consistent, valuable IT services to end users much more difficult. 

And if that wasn’t hard enough, breaks in service create friction in employees’ experiences. This further complicates how you handle device, identity, and user access management.

If you’re starting to ask yourself, “how do I even start?,” this is where organizations like G2 become such an important tool. G2 provides a platform for peers and colleagues to shine a spotlight on the companies that excel in overcoming these hurdles. Their reviews and shared experiences help others in search of a viable solution to their own individual challenges.

The Fall 2024 Grid® Reports by G2 

The Fall 2024 Grid® Reports are a comprehensive evaluation of cloud security solutions, based on real-world user feedback and experiences. The reports cover a wide range of security categories, including device management and protection, network security, compliance and governance, and identity and access management.

What I like best about JumpCloud is its seamless integration with a wide range of systems and applications, making user management a breeze for our business. The flexibility and security it offers are truly impressive, and the exceptional support ensures we have peace of mind while using the platform.

Juan D. on G2

With over 2,700 reviews and ratings, verified G2 users found JumpCloud to be a leader across several categories, including mobile device management (MDM), single sign-on (SSO), user provisioning and governance tools, identity and access management (IAM), privileged access management (PAM), password policy enforcement, cloud directory services, remote support, and unified endpoint management (UEM).

Awards and Appearances

In these reports JumpCloud is ranked as the #1 solution in 65 different reports including: