I recently finished a small consulting engagement where the client asked me if they should build an IoT platform.
I’ll give you the same advice I
gave them, but for free.
“Don’t do it.”
Let’s talk about the underlying challenges with today’s IoT best platforms. It’s a very weird market.
Think of it this way: for most types of platforms/applications/solutions there is a Coke, a Pepsi, a Dr. Pepper/ Snapple, and a National Beverage (who makes Shasta and other brands you may or may not have heard of.) The IoT security market, on the other hand, comprises a bunch of National Beverages.
This is clearly reflected in the Gartner Magic Quadrant, which in this case should be called the “Gartner Muggle Bi-Rant.” It has no magic, and every single vendor is listed in the bottom two quadrants.
Figure 1: Gartner’s Muggle Bi-Rant
Gartner cleverly did not include the two market leaders: Azure IoT Hub and AWS IoT. (What’s to gain by excluding cloud vendors?)
This is puzzling on so many levels. Do some customers want
an on-premise solution? Yes. Should that totally disqualify you from the
analysis? No.
It makes no sense, and the market is looking for another solution to Gartner’s analysis, which is usually somewhat on the ball.
So, we turn to Forrester, which
definitely has a better IoT report.
Since we need to calibrate on the Gartner miss, we also
include Navigant’s analysis, which is also better than Gartner. This leads to a
dilemma. Whose report should we use?
I don’t know the answer, but we
made a chart reflecting the different vendors that are covered.
This is a look into which platforms are considered the top
ones by these analysts. While it does seem like the market is “looking for the
Coke,” the reports show what sorts of traction vendors have made to date.
Figure 2: Gartner/Forrester/Navigant IoT Venn Diagram
Should You Use an IoT Platform? Yes. If you manufacture or operate devices, then yes, you should be using an IoT platform. They allow you to focus on higher-value things instead of infrastructure and scalable services.
Should You Build an IoT Platform? No. That is an unequivocal no . Unless you have a mandate to “quickly destroy as much
shareholder value as possible” you should not be building an IoT platform.
You have a ridiculously crowded field of marginal players.
Plus, it turns out that you need a lot more capital than you probably thought
in the beginning to put one of these platforms together.
If you are determined to be in this space, look to acquire one of the existing marginal platforms whose investors are crying “uncle.” That tells you all you need to know about whether the IoT platform market needs more small competitors.
Should You Build an IoT Application/Solution? Maybe. There are plenty of IoT problems that need to be
solved. That means a solution can deliver value. The trick in IoT is to
leverage existing platforms and tools to focus on the specific customer need.
There is a tremendous ability to create societal benefit by
leveraging data from machines. Alternatively, delivering better service (because
of improved machine up-time or always having the right consumables, for
example) will allow companies to delight customers.
Methodology for Selecting the Best IoT Platforms There are a lot of IoT platforms
out there.
Here is our ‘unpatented’ methodology for determining the best IoT platforms:
Read the Gartner report.
Think, “Hmm, this is not good.”
Read the Forrester report.
Think, “Good but it contradicts
Gartner.”
Read the Navigant report.
Think, “Good, but no one has
ever heard of them.”
Then look at the intersection between the three. You get
four platforms:
These platforms are definitely used by customers. But there’s
no Azure, and from personal observation of tens of product manufacturers, I
know that Azure is being used, evaluated or at least considered by virtually
everyone!
I have also run into AWS IoT, although not as much as Azure.
Because of AWS’s broad adoption, it would be foolish to not include it into the
mix.
Voila, we have our top
platforms!
6 Best IoT platforms This analysis reflects what I believe to be the best IoT platforms. The market is likely to change a lot in the near future. Today, Azure and AWS are in the first and second places.
1. Microsoft Azure IoT Platform
Most Microsoft shops should strongly consider utilizing Azure IoT as their platform of choice for connecting devices. They are investing heavily in this type of technology, and the IoT products integrate into the broader Azure features. This means that customers using this solution can use Microsoft’s Business Intelligence and security tools.
Azure IoT also has pretty good
device management.
If I were to ask for a single feature, it would be device certificates by default. Yes, they are a pain, but I bet that Microsoft could find a way to improve them. This would significantly improve the security of all solutions shipping on Azure IoT. Note there is an option to add device certificates , but it is work.
2. AWS IoT Platform
I thought a few years ago that AWS would dominate the IoT platform market. They were so far ahead, it seemed like AWS would become the go-to for object storage, serverless computing, generalized cloud services – and yes, IoT!
However, AWS is content to offer the building blocks for
putting together an IoT solution. It is the ideal solution for companies using
AWS for other things.
Suppose you have a company with a very developer-centric
culture. AWS can supply all sorts of functionality, and the AWS-knowledgeable
development team can build a solution on a solid base.
By contrast, if a company or department with a “non-developer mentality” is considering using AWS for IoT, they should have a development partner between them and the platform, or they will be very disappointed. Customers using AWS IoT can take advantage of all of the other great services and features of AWS. AWS IoT uses device certificates by default. (Unfortunately, they have very long expirations – 2049 – yes, that is twenty-five years from now!)
3. PTC ThingWorx IoT Platform
PTC ThingWorx should be
considered for any manufacturing use case.
The founders had a ‘manufacturing-centric’ view of the world, leading them to create a nearly perfect product for this market.
Since the PTC acquisition, PTC has broadened the appeal for more use cases. ThingWorx IoT is very good for quickly getting a prototype/pilot going. It is great for quickly making custom user interfaces to address device management. ThingWorx is useful for on-premise use cases such as manufacturing or mining, where cloud solutions may not be as practical.
In addition, ThingWorx is very extensible, which means that
there are often partner products to help overcome product shortcomings.
(Note: This author was
the first product management leader for ThingWorx.)
SAP IoT Platform SAP should be considered for use by telecom and energy sector customers. Because of their strong industrial footprint, SAP is in the mix, but particularly popular with their existing customer base. By contrast, it seems relatively unlikely that non-SAP customers would adopt the SAP IoT platform.
5. IBM IoT Platform IBM is another household name for other services that makes
an IoT platform for asset management, facilities management and systems
engineering use cases.
As with Azure, as we mentioned before, most IBM IoT customers will likely be existing IBM customers who are looking to solve IoT use cases. IBM has a big customer base, so that’s no small thing. Again, having the vendor “reach” makes IBM’s IoT appealing to companies that have already invested with IBM.
6. Oracle IoT Platform
The Oracle IoT platform is more of a Platform as a Service (PaaS) with some IoT features. Oracle’s IoT capabilities include agent libraries and a software gateway enabling customers to connect their devices to the Oracle cloud. Again, this is best suited for existing Oracle cloud customers.
Best IoT Platforms FAQs
Let’s take a look at some frequently asked questions you might have in mind when considering the best IoT platform.
What Key Features Should I Look for in an IoT Platform? Well, an IoT platform has several key features: device management, data collection and storage, connectivity management, analytics and reporting, security and compliance measures, and integration capabilities with other systems.
How Can the Best IoT Platforms Benefit My Business? An IoT platform gives your business valuable data and insights from connected devices in real time. This can boost operational efficiency, cut costs, improve customer experiences, and foster innovation. Plus, it allows us to expand our IoT projects and securely handle numerous devices.
What Security Measures Should I Consider When Using an IoT Platform? Security is very important when it comes to IoT platforms. We must ensure that data is transmitted securely, devices are protected from cyber and insider threats , and user privacy is maintained. This involves using encryption, authentication, access control, and regular security updates.
How Can I Choose the Best IoT Platform for My Company’s Needs? You should consider scalability, compatibility with current systems, ease of use, security features, pricing, and vendor reputation. It’s important to evaluate your business’s specific needs and select a platform that fits your goals and objectives.
Optimize Your Operations with the Best IoT Platforms Now! Maybe you can tell from this analysis that the IoT platform market is full of “Shasta-like” platforms made by well-known vendors. Today most customers are unlikely to wander far from the vendors that they do business with. In the near future we’ll likely see big changes in the IoT platform market.
Therefore, now is the time to consider these platforms to optimize your operations. With technology advancing rapidly, your business must integrate these solutions to streamline operations, improve decision-making, and drive growth. So, take advantage of the chance to transform your business with these top IoT platforms now!
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