Software Inventory vs. Hardware Inventory: Which Is More Critical for Cybersecurity Compliance?

When security teams think about asset inventory, they often start with hardware. Laptops, routers, servers, firewalls. These are tangible devices with asset tags, physical locations, and serial numbers. It makes sense—you can touch them, assign them to users, and track them through procurement.

But when it comes to compliance with ISO 27001, the Digital Operational Resilience Act (DORA), and Secure by Design principles, that’s only half the story.

These frameworks call for a comprehensive inventory of information assets. That includes hardware, but also the software and firmware that run on those devices. Unfortunately, many organizations stop at the hardware layer, overlooking a significant portion of their attack surface in the process.

Consider these leading frameworks and regulations now demanding deeper visibility, including:

• CIS Critical Security Controls, which include:

  1. Inventory and Control of Enterprise Assets
  2. Inventory and Control of Software Assets

• NIST Cybersecurity Framework (CSF) 2.0, which emphasizes asset management and software supply chain risk

• Secure by Design (CISA, NIST, DOJ), which calls for proactive management of all software components—especially those within device-level software and connected systems.

• FDA Cybersecurity Guidance (for medical device manufacturers), which explicitly calls for SBOMs and a robust vulnerability management process that includes device firmware.

• DORA (Digital Operational Resilience Act), which expects regulated financial entities to manage ICT (Information and Communication Technology) third-party risks, including those found in software and firmware components
  
  

The message is clear across the board:

You can’t secure what you can’t see.

That includes the firmware and software running on connected devices, IoT systems, and operational technology where vulnerabilities often hide in plain sight.

The Challenge of Software Inventory: Why It’s Critical for Supply Chain Security

Hardware inventory is relatively straightforward. Most asset management systems can track devices via MAC addresses, serial numbers, or endpoint agents. But software inventory, especially at the firmware level, is far more complex.

That’s because:

• Firmware is often opaque, with no access to the source code.

• The software stack on a device can vary by version, build process, and configuration.

• Firmware may contain third-party components, embedded scripts, hard-coded secrets, and misconfigurations that aren’t visible through standard scanning tools.

And yet, firmware is software. It’s code that can contain vulnerabilities. And if you’re not accounting for it in your inventory, you’re exposing your organization to unseen risk.

Binary Analysis: The Key to Complete Software Inventory

How do you get visibility into software when you don’t have access to the source code?

Binary analysis closes that gap.

Unlike traditional Software Composition Analysis (SCA) tools, which rely on source code or build artifacts, binary analysis works directly on compiled firmware binaries. That means you can:

• Create accurate SBOMs based on the actual firmware running in the field

• Detect outdated or vulnerable libraries that weren’t documented upstream

• Surface hard-coded secrets, embedded configuration files, or licensing issues

With binary-level visibility, you can build a classified software asset inventory that mirrors what’s actually in your environment, not just what the vendor or upstream supplier told you was there.

The Security Risks of Ignoring Firmware Inventory

Let’s say your organization has fully implemented ISO 27001. You’ve got strong controls around physical asset management, network segmentation, and user access. But your vulnerability management program doesn’t extend to firmware.

If a router ships with an outdated open-source component, or a medical device includes a hard-coded default password, you might never know. These issues don’t show up in most enterprise security scans.

This is exactly the kind of oversight that attackers exploit.

And regulators are catching on. Recent guidance from the FDA, CISA, and NIST explicitly emphasizes the importance of firmware visibility and software supply chain transparency, particularly in critical infrastructure, healthcare, and high-risk sectors.

These risks aren’t just theoretical. Global regulators are now building firmware visibility into compliance expectations.

Firmware Visibility Is a Global Priority

Many organizations rely on hardware inventories as the foundation of their security program. But as global regulations evolve, it’s clear that hardware alone doesn’t cut it.

The European Union’s Cyber Resilience Act (EU CRA), for example, places a strong emphasis on software security throughout the product lifecycle, including connected devices and firmware. Manufacturers will be required to document software components, monitor for vulnerabilities, and respond quickly to emerging risks. None of that is possible without a comprehensive software inventory.

Also, the NIS2 Directive expands the scope of mandatory risk management across critical infrastructure and digital service providers. NIS2 calls for stronger supply chain controls and ongoing vulnerability management, both of which depend on visibility into firmware and other device-level software.

These global regulations reinforce a central message:
If your inventory ends at the hardware layer, you’re out of step with modern compliance expectations.

How a Unified Hardware and Software Inventory Strengthens Compliance

When you integrate software and firmware visibility into your asset management program, you unlock several key benefits:

• Stronger compliance posture for ISO 27001, NIST CSF, DORA, Secure by Design, FDA guidance, and CIS Controls

• Improved vulnerability management across the full device lifecycle

• Better third-party and supplier risk evaluation, down to the component level

• Support for SBOM-driven risk identification and remediation

You can also build tighter integrations between security, IT, and procurement—ensuring that all stakeholders have the visibility they need to manage risk.

Final Takeaways: Go Beyond the Surface

Hardware inventory is foundational. But without a software inventory to match, you’re working with only half the picture.

By incorporating binary analysis into your workflow, you gain the deep visibility needed to:

• Inventory firmware components accurately

• Detect hidden vulnerabilities and misconfigurations

• Extend your Information Security Management System (ISMS) across your connected product ecosystem

Security starts with knowing what you have.
Make sure your software assets aren’t left in the dark.

Let NetRise help. Request a demo today!