Building vs Buying in IoT

In the rapidly evolving world of IoT, companies often face a critical decision: should they build their solutions in-house or buy existing ones? This question is at the heart of the “building vs buying in IoT” debate, and it’s one that Chris Desnoyers, Director of Business Development for IoT at Amotus, a seasoned professional with nearly 30 years in the tech industry, has encountered numerous times throughout his career.

You can see the complete interview in this video.

Let’s analyze each of the points mentioned by Chris.

The Partnership Economy in IoT

Chris emphasizes the importance of partnerships in IoT, highlighting that companies should focus on their core competencies rather than trying to do everything in-house. This approach is particularly crucial in IoT, where expertise is required across multiple domains:

• Hardware
• Electronics
• Firmware
• Cloud infrastructure
• Connectivity

Unless a company’s core business is IoT itself, attempting to develop all these competencies internally can be a costly and time-consuming endeavor.

If you need help with your project, please contact me by filling out this form. I will answer you as soon as possible.

The Build vs Buy Decision

When considering the “building vs buying in IoT” dilemma, Chris recommends evaluating several key factors:

1. Core competency: Is the technology central to your business?
2. Existing solutions: Are there off-the-shelf products that meet your needs?
3. Long-term costs: Consider maintenance and scalability
4. Required expertise: Assess if you have the necessary skills in-house

Chris warns against becoming a “tech company by accident” when a business’s core focus lies elsewhere.

Real-World Examples

To illustrate the challenges of the “building vs buying in IoT” decision, Chris shared two compelling examples:

1. A company that couldn’t deploy bug fixes for over a year due to an overly customized codebase built entirely in-house.
2. A telematics device manufacturer that benefited from outsourcing hardware production, allowing them to focus on their core business.

Balancing Technical Oversight and Partnerships

Chris advocates for a balanced approach when it comes to “building vs buying in IoT”:

• Regular meetings between operations, sales, and development teams.
• Being the voice of the customer in technical discussions.
• Building trust through effective communication across departments.

This approach ensures that companies can leverage partnerships effectively while maintaining control over their core competencies.

Key Takeaways for “Building vs Buying in IoT”

Summing up, Chris recommends to consider the following points:

• Have open conversations with potential partners before making decisions.
• Consider hybrid approaches (build critical components, use standard tools, partner for expertise).
• Evaluate the long-term implications of build vs. buy decisions.
• Focus on your core business and leverage partnerships for non-core competencies.

Conclusions

In conclusion, the “building vs buying in IoT” decision is not always black and white. Companies should carefully evaluate their needs, resources, and long-term goals before deciding whether to build in-house or leverage existing solutions and partnerships. By doing so, they can position themselves for success in the complex and rapidly evolving IoT landscape.