Industrial companies worldwide are re-evaluating their technology sourcing strategies for Internet of Things deployments, moving away from reliance on single equipment suppliers. This strategic shift, observed across manufacturing, energy, and logistics sectors, is driven by the need for greater flexibility, cost control, and interoperability in connected industrial systems.
Early Industrial IoT, or IIoT, implementations frequently depended on specialized vendors, often the original manufacturers of the machinery and plant equipment. This approach offered simplicity in integration and single-point accountability. However, it also created limitations, locking companies into specific technology stacks and potentially hindering innovation and scalability.
Considerations for vendor strategy
Planning a vendor strategy for IIoT now involves complex decisions. Key considerations include the long-term roadmap of vendor platforms, data ownership and portability, and the security implications of a consolidated versus diversified technology stack. The total cost of ownership over a system’s lifespan is also a critical factor, extending beyond initial procurement.
Different industrial sectors present unique challenges. A manufacturing plant with legacy machinery has different integration needs than a modern smart grid or a fully automated warehouse. The technical requirements for data latency, reliability, and volume can vary significantly, influencing whether a single-vendor or multi-vendor approach is more suitable.
The Rise of platform consolidation
A notable trend is platform consolidation, where companies seek to reduce the number of disparate systems managing their IIoT assets. This does not necessarily mean returning to a single supplier. Instead, organizations are increasingly selecting primary platform vendors that offer open architectures, allowing for the integration of best-in-breed components from smaller, specialized firms.
In many cases, these smaller vendors are now replacing parts of multi-vendor stacks. They often provide innovative solutions for specific problems, such as predictive maintenance analytics, edge computing capabilities, or cybersecurity for operational technology networks. Their agility allows them to develop and deploy targeted applications faster than larger, established industrial automation providers.
Implications for Interoperability and Standards
This evolving vendor landscape places a premium on interoperability and open standards. Industrial end-users are prioritizing solutions that adhere to protocols like OPC UA, MQTT, and time-sensitive networking. The ability to mix and match hardware sensors, connectivity modules, and software applications from different suppliers without costly custom integration work is a primary goal for new deployments.
The strategic shift also impacts internal organizational skills. Companies must develop or acquire expertise in systems integration and vendor management to successfully oversee a multi-supplier IIoT environment. This represents a change from the traditional model where deep operational knowledge of a single vendor’s ecosystem was sufficient.
Industry analysts expect this trend toward carefully curated multi-vendor strategies to continue as the IIoT market matures. The focus is moving from simply connecting assets to deriving actionable intelligence and achieving specific business outcomes, such as reduced downtime, optimized energy use, and new service-based revenue models. Future deployments will likely be judged less on the technology itself and more on its tangible return on investment and strategic alignment.
Source: IoT Tech News
