Identifying Unique Selling Points in the IoT Ecosystem: Part 2 – Platforms and Value Creation

Introduction

In this second installment of our IoT value‑chain series, we shift focus to IoT platforms— the backbone that connects sensors, devices, and applications to actionable insights. Our goal is to equip business leaders with the strategic insights needed to choose the right platform mix and carve out a compelling USP in every component of the value chain.

What Makes an IoT Platform?

An IoT platform is a composite of horizontal and vertical capabilities. Horizontal functions typically include Connectivity Management, Device Management, Data Ingestion & Storage, Application Enablement, Analytics, and often Billing. Vertical capabilities are scenario‑specific applications that deliver end‑to‑end solutions.

Connectivity Management

While the network operator handles the core connectivity, strategic decisions involve choosing licensed vs. unlicensed SIMs, SIM vs. eSIM, and split vs. end‑to‑end billing. These choices set the foundation for coverage, security, and scalability.

Device Management

Key requirements include device lifecycle management, command and control, monitoring, auditing, and firmware updates. Protocols such as LWM2M, OMADM, OPC‑UA, Profinet, Modbus, and HART are common, but they rarely provide a unique competitive edge on their own.

Data Ingestion & Storage

Handling heterogeneity, evolving standards, scalability, and security is paramount. Selecting the right transport—HTTPS, MQTT, CoAP, AMQP—affects cost and integration effort. Some platforms bundle SDKs to accelerate development, while others offer low‑code, low‑touch configuration.

Solution Availability Choices

Three mainstream options exist:

• Cloud PaaS (e.g., AWS, Azure) that bundles ingestion, brokers, and storage.
• Fully productised platforms (e.g., C3IoT, Software AG, PTC) that deliver ready‑to‑go administration, operation, and UI.
• Open‑source stacks (e.g., RabbitMQ, Eclipse Mosquitto) that demand in‑house expertise but offer full control.

Given the competitive nature of this segment, PaaS or SaaS solutions are generally the most efficient route.

Application Enablement & Analytics

These horizontal platforms empower real‑time or batch processing, machine learning, visualization, and API integration. Edge capabilities are increasingly important; hardware options include Intel Movidius and Dell edge appliances, while software options cover Azure IoT Edge, AWS IoT Greengrass, and Software AG edge solutions.

When building from scratch, you’ll need to weave together tools like Kaa, HDFS, Kafka, NiFi, MongoDB, and Nginx. SaaS analytics platforms can offer advanced learning algorithms, but the risk of market dominance grows over time.

Vertical Specific Applications – The Real USP

Vertical applications bring together platform services into a coherent end‑to‑end solution. The value emerges when the combined insights solve a tangible business problem. To qualify as a true USP, an application should be valuable, rare, imperfectly imitable, and non‑substitutable—the classic VUIN framework.

Because these applications generate high customer stickiness and can be launched quickly, building from open‑source foundations often yields the fastest path to market and the greatest differentiation.

Strategic Takeaways

• Data ingestion and storage – PaaS or SaaS is usually optimal. • Application enablement and analytics – Prefer PaaS for agility, but SaaS can deliver advanced ML. • Vertical apps – Build from open source to tailor the solution and accelerate time‑to‑market.

Ultimately, each use case demands a bespoke evaluation. Use the guidelines above, but let your specific context steer the final decision.

The authors of this blog are Arpit Khosla, founder of IoT Australia Consulting Services, and Praneet Thakur, advisor of IoT Australia Consulting Services.