White Paper

Build Vs. Buy: Key Questions To Ask To Make The Right IoT Endpoint Decision


Choosing the Right Edge Device Strategy for Your IoT Application

Across industries and across use cases and business processes, organizations are increasingly implementing Internet of Things (IoT) applications to improve operational efficiencies, enhance existing offerings, and bring new offerings to market.

At the heart of each IoT deployment is the connected device, or endpoint, (the “thing” in Internet of Things) that is directly related to the underlying technology of the solution as it must support the desired network technology, application capabilities, security requirements, etc. Once it has been determined what functionalities, device standards, and other technologies an IoT endpoint must support, organizations must make the critical, fundamental decision: should we build the endpoint from scratch or buy an off-the-shelf option?

The Consideration of Scale

Both sides of the “Build vs. Buy” ledger carry distinct benefits, which are magnified depending on the unique nature of each organization and their IoT strategy. Understanding which decision best positions an IoT solution for success is an important first step.

A critically important consideration in the Build vs. Buy debate is scale, as the number of devices you expect to deploy has a significant impact on your decision. Very often, the economic “sweet spot” for building begins at around 2,000- 5,000 connected assets. Below that threshold, the cost points associated with building are too high to generate return on IoT investments.