Asset Vs Configuration Item

Another area that people find it difficult to differentiate is a configuration item and an asset. Some of us feel that both are same. I will focus this post on key differences between the two.

Asset has a financial value along with a depreciation rate attached to it. IT assets are just a sub-set of it. Anything and everything that has a cost and the organization uses it for its asset value calculation and related benefits in tax calculation falls under Asset Management, and such item is called an asset. Asset's life is for duration till its financial value becomes 'Zero', which depends on the associated depreciation rate. There is no relationship between assets.

Configuration Item or CI on the other hand may or may not have financial values assigned to it. It will not have any depreciation linked to it. Thus, its life would not be dependent on its financial value but will depend on the time till that item becomes obsolete for the organization. CI has a relationship. So from a CI all information on subsequent parent and child CIs can easily be obtained. Also, CI is restricted to items specific for use in live IT environment.

Let’s take an example that can easily signify the similarity and differences:

1) Similarity:

Server - It is both an asset as well as a CI.

2) Difference:

Building - It is an asset but not a CI.

Document - It is a CI but not an asset.