A component is considered a configuration item (CI) as opposed to an IT asset when you want to:

The primary distinction between an IT asset and a Configuration Item (CI) lies in their purpose. An asset is tracked for its financial and contractual value throughout its lifecycle. A CI is tracked for its operational role in delivering IT services. Therefore, a component is specifically considered a CI when you need to track its relationships and dependencies with other CIs in the Configuration Management Database (CMDB). This information is critical for impact analysis, change management, and root cause analysis for incidents.

A. Track its incurred costs: This is a core function of asset management, focusing on the financial aspects of the component.
B. Manage its retirement: This is a lifecycle stage managed by asset management, though the CI record is also updated.
D. Manage its license contracts: Contract and license management are fundamental responsibilities of IT asset management.
E. Know who is using it: This information is tracked for both assets (Assigned to) and CIs (Used by), but relationship tracking is unique to CIs.

- ServiceNow Product Documentation, "IT Asset Management," Overview. This documentation distinguishes between ITAM (financial focus) and CMDB (operational/relationship focus). It states, "A CI is any component that needs to be managed in order to deliver an IT Service."

- ServiceNow Product Documentation, "CMDB fundamentals," Courseware. Module: CMDB Overview. This course explains that the power of the CMDB comes from understanding the relationships between CIs to support ITSM processes.