More and more companies are turning to IoT solutions to optimize their processes. This is leading to an increasing demand for solutions in a wide range of industries and use cases. This article deals with the differences between a ready-to-use IoT solution and a customized solution. The advantages and disadvantages of each will be considered in order to be able to make the clearest possible decision at the end.
Advantages of ready-made IoT solutions
Ready-to-use IoT solutions can usually be used directly in the practice after a one-off payment or via a subscription. The application has been developed for the broad market or a specific sector, which makes implementation very quick and easy. At the same time, the costs are lower. The aim of a company that develops software for IoT applications, for example, is to sell it multiple times.
This can be very lucrative and at the same time reduces the costs for any company that wants to buy this software. At the same time, this allows a wide range of information to be collected, which means that the software can be constantly improved and becomes increasingly less risky due to the many different applications and corresponding adjustments. In addition, the buyer already knows before the purchase what he can expect and what not.
Disadvantages of ready-made IoT solutions
In addition to the numerous and very valuable advantages of the ready-to-use IoT solutions, there are also disadvantages. Sometimes all it takes is a change of perspective to turn an advantage into a disadvantage. In particular, the ease of implementation and the design of the IoT application, which could deliberately be suitable for many different companies, means that there is a lack of flexibility in special use cases. Individual customization could also prove difficult.
Providers may not even offer such a service. The individual customization could be added internally at a later date if the provider of the IoT applications allows this. Even if such access is permitted, this would involve a great deal of effort as the software, to stick with the same example, was written by an external company and therefore lacks comments or understanding of the code.
A lack of customization options can therefore impair compatibility, which in turn makes scalability more difficult compared to tailor-made IoT applications. Another disadvantage of ready-made IoT products is that they are tied to the provider. Once you have decided on a provider, it would be difficult to change it for various reasons.
If, for example, a smart home system has been purchased and you want to change providers, this is only possible by purchasing a new system, which represents a high cost barrier. This can also mean that another provider on the market offers new features for its smart home system. You do not have access to these at this time, as you are tied to your own provider. Once again, the same cost blockade arises that you would have to overcome for these features. This shows the lack of control due to ready-made IoT solutions.
Advantages of individual IoT solutions
The advantages of customized IoT solutions are, as you can imagine, very extensive. Therefore, there will certainly be some advantages that are not listed in this section. Or the benefits relate to specific use cases and are therefore not generally understandable.
Individual IoT products are, as the name suggests, developed for a specific company or for a specific task in a business unit. This means that the product meets the exact requirements and is therefore more effective than a ready-made IoT application. This ensures an optimal transition for the integration of the product and cooperation with existing systems in the company. In addition, the IoT application can be adapted as required and optimized over time. The result is complete control over the hardware and software used.
The opportunity to stand out from the competition is particularly relevant for companies. This can be achieved through individual IoT solutions in order to gain a market advantage. In particular, if competitor companies are not technically up to date, the company can gain an advantage much more easily and quickly by implementing individually developed IoT solutions and their scalability.
Disadvantages of individual IoT solutions
The aforementioned advantages of individual IoT solutions are offset by a corresponding price. The purchase price in particular is significantly more expensive, as a customized product can only be sold exactly once and therefore incurs immense costs for the company producing the IoT application, which must be paid by the buyer.
In addition, such individual development takes a lot of time, as the product concept often has to be started from scratch. This is particularly problematic if the desired product is to be available as soon as possible, which quickly creates a conflict between quality and time. Especially when the need for an individual IoT application arises and you would like to have implemented it already. It also makes sense to work very closely together to ensure that the end product meets the requirements as closely as possible.
This means that not only the purchase price must be charged, but also the internal employee hours required. Particularly high risks arise with such individual products due to vendor lock-in, as it is almost impossible to change providers and this is associated with higher costs. The selection should therefore be made very carefully, bearing in mind that a low-cost provider can cost significantly more time and money if the end product does not meet the requirements.
Basically, it can be said that when deciding whether to use a ready-to-use application or to develop an individual IoT application, the time and cost factor in particular must be taken into account and what the application should look like in the end.
Both models definitely have their raison d'être. Both individual and ready-made IoT products have advantages and disadvantages. Which is the right choice should be assessed on a case-by-case basis. For simple issues, and especially if there are enough suitable products on the market, ready-to-use IoT products can be a quick and easy solution. For highly complex topics and problems that require a great deal of time and money, individual development may be the more suitable choice in the long term.
In general, it is important to know the advantages and disadvantages and to consider each situation individually in order to be able to make a differentiated decision as to which option is the better choice in each individual case. Let us find out in a joint demo which solution is best suited for you and your processes.
