How Custom-Built IoT Gateway Far Outweighs an Off-the-Shelf Solution?

Business decision makers are usually of the opinion that it is more cost-effective to buy software than build it. But that may not be true in all cases. 

In the case of an IoT gateway solution, the most important aspects to consider are your business goals, budget and timeline. 

However, custom designing and developing an IoT gateway can offer a bunch of benefits that are often overlooked.

Analysing the Build Versus Buy Dilemma

“Custom-built IoT gateway will help you achieve your business goals and desired ROI.”, says one business decision maker. 

“You can never go wrong with a tried and tested off-the-shelf IoT gateway product.”, says another. 

“Both opinions appear to be right in their own sense. But how do I evaluate “Build vs Buy” strategies specifically for my IoT projects?”, asks the third. 

There are 2 keys that can unlock the answer to this dilemma.

Key 1 – Evaluation of technical parameters relevant to your IoT project 

Key 2 – Evaluation of business parameters relevant to your organisation’s goals 

 

Key 1 - Technical Parameters to Consider 

Listed below are some technical parameters that you should take into consideration while evaluating the most suitable approach for your project: 

 

Technical parameter	Off-the-shelf solution	Custom-built solution
Hardware components	Irrespective of your use case, you pay for all the components that are part of the design.	Your design will include components relevant to your use case.
Compatible communication protocols	Includes a default set of communication protocols. You can use what is already available.	You have the freedom to choose a reliable option relevant to your use case.
Regulatory compliance and certifications	These solutions are mostly pre-certified.	Onus of compliance and certifications lies with you and your vendor company.
Form factor design	Too rigid to adapt to your specific business requirements.	Flexible form factor with minimal restrictions on component placement.

 

Key 2 - Business Parameters to Consider 

Listed below are the business parameters to consider for your specific use case: 

 

Business parameter	Off-the-shelf solution	Custom-built solution
Per unit cost	Mostly on the higher side.	Less, especially if the volume of IoT gateway units to be developed is huge.
After-market support	As per the terms and conditions of the IoT gateway vendor.	Can be negotiated and tailor-made before signing the contract.
Prototype development	Ideal for prototype development.	Can be expensive due to high cost per unit.
Degree of ownership/IP rights	Is majorly with the IoT gateway solution vendor.	You are the owner of the final product design.

 

Conclusion 

Considering the points listed above, it is clear that a custom-built IoT gateway solution may initially incur higher costs, especially if you are developing a limited number of units. However, the benefits it offers in the long run are unparalleled. 

A custom-built IoT gateway solution can be easily maintained by your organization, as you are the owner of the product. This offers a level of control and stability that should not be overlooked.