Buy vs. Build: Choose The Right Path for IoT Adoption in Your Digitization Journey

The digital transformation is no longer a buzzword, it is a reality. Every business is looking for ways to leverage new technologies to gain a competitive edge, reduce costs, and enhance customer experience. The Internet of Things (IoT) is one such technology that is enabling organizations to achieve their digital transformation goals. By connecting devices, machines, and people, IoT is creating new opportunities for businesses to generate insights, automate processes, and improve decision-making.

To realize the full potential of IoT, organizations need an IoT platform - a central hub that brings together devices, data, and applications. However, there are two paths to achieving an IoT platform: buying an off-the-shelf platform or building one from scratch. Each approach has its own advantages and disadvantages, and the decision to buy or build an IoT platform depends on several factors such as the organization's size, budget, resources, and technical expertise.

In this article, we will explore the pros and cons of buying vs. building an IoT platform. We will also look at different types of IoT platforms based on deployment models & applications and the key considerations that organizations need to keep in mind when choosing an IoT platform. Whether you are a small business just starting your digital transformation journey, or a large enterprise looking to scale up your IoT operations, this article will provide valuable insights to help you make an informed decision. In our previous article, we have understood the building blocks of an IoT platform. Based on the deployment models of the IoT platforms these can be classified into three types, such as cloud-based, on-premise, and hybrid solutions. Each type has its own advantages and disadvantages, and choosing the right platform depends on the specific needs and requirements of the application.

Cloud-based platforms are highly scalable and can handle large amounts of data. They are also generally cost-effective and require minimal upfront investment. However, they can be susceptible to data security breaches, and users may have limited control over their data. While choosing a cloud platform, you need to check the security aspect of it in order to ensure the security standards are maintained.?

On-premise platforms, on the other hand, offer greater control over data and security as many times these are not connected to the Internet but rather restrict the access over it's private network. This may limit many fundamental needs of digital transformation, accessing the data from anywhere. They can be customized to meet specific requirements and can be integrated with existing systems. However, they can be costly to set up and maintain, and may not be as scalable as cloud-based solutions.

Hybrid solutions combine the benefits of both cloud-based and on-premise platforms, offering greater flexibility and scalability while also providing greater control over data and security. However, they can be more complex to set up and manage, and may require a higher level of expertise.?

It's important to evaluate the pros carefully and cons of each type of platform and consider the specific needs of the application before making a decision. Additionally, there are numerous major players in the IoT platform space, such as Microsoft (Azure), Amazon (AWS), Google and IBM (Watson), each with their own offerings and features. Comparing these offerings and selecting the right platform is crucial for building a successful IoT solution. On the basis of functionality the IoT platform can be classified as Horizontal (Generic Services), Vertical (Industry Specific) and Hybrid (Combining both features). As we have understood, the general building blocks and the types of IoT Platform, let's deep dive into the framework to choose while making an implementation decision. The following table gives you a set of categories which can be used to evaluate your decision by putting real numbers.

When it comes to choosing between buying or building an IoT platform, there is no one-size-fits-all answer. Deciding whether to buy or build an IoT platform is a crucial decision that requires careful consideration of various factors. For large enterprises with ample resources and technical expertise, building a custom IoT platform may be a feasible option. But, Large enterprises must consider the timeframe needed to build such a complex product. However, for smaller businesses or those with limited technical expertise, buying an off-the-shelf IoT platform may be a better choice. It is also worth noting that the decision to buy or build may also depend on the specific use case and requirements of the organization. Ultimately, the goal should be to select a solution that meets the organization's needs, is scalable, and provides a good return on investment.

In this article, we discussed the different types of IoT platforms, their pros and cons, and the factors to consider when making a decision. In the upcoming articles, we will dive deeper into each block of IoT and provide more detailed information on the key considerations to keep in mind when making a buying decision. The objective of this article was to provide a high-level overview of the buy vs build decision-making process for IoT platforms and we hope it has been helpful in guiding you towards the right decision for your organisation.

Please let us know in the comments section what topics/use-cases you would like us to cover in our upcoming articles on IoT. You can write to us for any feedback/inputs or requests to [email protected]