The rise of the Internet of Things (IoT) has revolutionized logistics by enabling real-time monitoring, tracking, and control of assets across various environments. Companies adopting an IoT solution have an important choice to make – opt to piece together multiple solutions or vendors for the different layers of the IoT stack – or choose a single, end-to-end provider to manage their IoT needs. 

While sourcing different solutions or vendors may seem advantageous in terms of customization or mitigating risks, it often results in increased integration complexity, higher costs, and operational inefficiencies – which can undo any benefits the IoT is intended to deliver. By contrast, implementing a trusted, end-to-end solution from a single provider can effectively address these issues and help ensure the reality of IoT matches the desired outcomes of adopting the technology in the first place.

The Complexity of Multi-Vendor Solutions

At first glance, combining multiple third-party IoT devices into a new or existing point of use seems like it would offer flexibility. Businesses can bring together the most suitable elements of the stack by mixing and matching hardware and software from various vendors – but this approach often results in numerous integration challenges such as:

Diverse hardware requirements. Devices from various vendors or third-party manufacturers often have different specifications, integration requirements, firmware logic, and connectivity standards. This may also result in the need for different management systems for device maintenance, firmware updates, and configuration.

Compatibility and maintenance complexity. Maintaining compatibility between various devices and layers of the stack and troubleshooting when technical problems arise often requires dedicated IT resources. It can also leave customers vulnerable to downtime, create gaps in the visibility of the location and condition of their goods, and result in delays while vendors shift responsibility for any failures between one another.

Increased security risk. Fragmentation increases security threats and cybersecurity attack risks due to a lack of visibility into variations in third-party protocols and operations and varying security standards. Misconfigurations, fragmented views of devices, and breaches at any vendor can expose your entire IoT stack to exploitation, data leaks, and compliance issues.

Hardware Hurdles 

Integrating multiple hardware components into a unified system is complex – it’s not a plug-and-play solution. This process introduces significant risks from compatibility issues to inconsistencies in data available and difficulties in establishing communication between devices, such as:

The devices may not speak the same language. Each device may have its own “logic” which is akin to speaking a different language. The devices need to be able to communicate with each other and disparate data types must be normalized across the devices for it to be useful. 

Differing specs. Various vendors may have devices with different specifications – and these must be compatible across the system. This can include device performance, a range of battery life, and various ingress protection (IP) ratings – among others. Even if the devices are compatible, varying specifications can result in each vendor’s hardware behaving a little bit differently. Any challenges can make it difficult to discern whether performance issues are a result of hardware differentiation, the environment the device is in, or the device itself.

Vendor dependency challenges. Fine-tuning firmware often requires iterative changes and when relying on third-party vendors, the speed at which updates and fixes can be deployed is dependent on each of their development teams. This dependency – and potential delays – are compounded when working with multiple hardware providers, as each may have different response times and expertise. The lack of in-house control over hardware adaptation may hinder the ability to meet the speed necessary for system or market readiness, particularly during deployment.

In contrast, a single provider mitigates these risks. With just single-sourced devices and software to monitor and manage, when an issue arises, it’s easier to identify the issue and determine the root cause. This decreases the chances of hardware failures and loss of visibility of your assets. To understand how and whether a single hardware provider can deliver on your needs, there are several important questions to ask, including: 

-How many devices have you deployed and how long have they been in the field?
-Who designs and manufactures your devices?  What is the manufacturing failure rate?
-What is your device warranty and remediation model?
-How much of your solution stack do you own and operate in-house?
-What was your biggest challenge deploying IoT to date and how did you solve it?

Risks of Maintaining Multiple Systems 

Getting the system to work together correctly is crucial – if one part is not operational or is experiencing an issue – it can create a domino effect on the entire system, either making it temporarily not operational, or forcing an entire rebuild. The platform is essentially “the brain” of the system, and just like in our bodies, the platform must be able to communicate to all its different parts – in this case, the hardware. The difference with a multi-vendor system, however, is that the parts – that hardware – are not its own. Just like a human body that needs an organ – even with the greatest transplant surgeon operating, there are myriad complexities and potential failures that can occur.

Blending firmware management, software integrations, and new feature rollouts from multiple vendors can take months – and it may be impossible to model compatibility issues between them until they’ve been deployed. Coordinating these updates introduces bottlenecks and creates additional operational challenges, making it difficult for businesses to stay agile and responsive to market demands. Some of these risks include:

Integration complexities in large systems. Large-scale integration requires strict adherence to each vendor’s specific methods and specifications. Managing multiple hardware and network layers – which are decoupled from the software – can create synchronization issues between devices and the software. This can create misalignment and performance disruptions across the entire solution. Successful integration demands meticulous coordination across the various vendors’ specifications to mitigate communication breakdowns between the hardware and software layers. 

Uptime and issue resolution. When an issue arises, identifying the root cause can be challenging and may lead to increased downtime. This is due to the multiple layers of hardware, software, and a network, coupled with each of those layers being operated by a different vendor. Submitting tickets for various issues may lead to a slower vendor response, especially if the problem impacts additional layers of the system. How quickly the issue is resolved is entirely dependent on each vendor’s responsiveness, which could complicate overall system reliability and impact uptime.  

Scalability challenges. Managing the ramp-up and ramp-down of infrastructure across multiple systems can be a challenge because of the lack of visibility into each vendor’s load and capacity. This may lead to over- or under-staffing, complicating resource allocation and preventing agile scaling. The inability to predict or adjust infrastructure demands in a timely fashion may hinder operational efficiency and make it difficult to maintain a fast-paced, responsive environment.

Code execution discrepancies. The efficiency and intelligence of the solution also depend on where the execution of the code is handled. A lack of flexibility in optimizing where code runs – in both firmware and software – can lead to a less intelligent platform.  

A key benefit of a single-provider IoT solution enables businesses to implement updates and new features faster. With full control over the entire ecosystem, a single provider can push updates seamlessly and maintain the system eliminating potential downtime or compatibility issues, enabling customers to avoid downtime and always maintain visibility of their assets.  While a single provider offers many advantages, it’s still important to ask questions to ensure you’re going to be working with the right partner for your business, including:

-How does your platform scale today?
-How many integration points do you have in your stack?
-How often do you release new features and how configurable is your platform?
-Have you had any bottlenecks on your platform? If so, how did you solve them?

Security Risks and Mitigating the Probability of a Hack

Introducing multiple vendors or solutions also heightens the risk of security challenges. Each part of your multi-vendor IoT stack creates a larger “attack surface” because they may have different security standards. Gaps in security, configurations, and encryption protocols can make your business vulnerable to bad actors. Some of these risks include:

Increased points of weakened security. Misconfigurations during integration could create exposure points ripe for exploitation and make it difficult to identify and address vulnerabilities.

Lack of visibility into third-party security operations. No unified view of all your IoT devices and solutions layers could delay the detection of anomalies or breaches, complicating threat response and mitigation.

Elevated exposure risk. A compromise or breach of any vendor’s production, distribution, or deployment processes could impact the security of your entire IoT stack and business. The mismanagement or mishandling of sensitive data could lead to data leaks, breaches, or compliance issues.

An end-to-end IoT solution significantly mitigates these risks by offering a single, end-to-end platform where all components are designed, tested, and maintained by one provider – and because they’re created to work together, results in increased reliability and simplifies the process of aligning cybersecurity standards. A few questions you should ask your end-to-end provider to ensure they take the appropriate measures for security include: 

-When did you perform your most recent security assessment? What were the results?
-What is your data retention strategy?
-How often are your security protocol pressure tested and updated?
-How much of your solution is proprietary versus open source?

The Case for a Single-Solution Provider

The hidden costs of managing a multi-vendor IoT solution extend far beyond the initial investment. Increased complexity, higher risk, and longer resolution times can all contribute to operational inefficiencies and lost revenue. In contrast, a single solution offers a simplified, scalable, risk-averse approach that improves overall performance. 

By choosing an end-to-end IoT solution, businesses can focus on what matters most – growing their operations and delivering value to their customers – without the hurdles of managing multiple vendors. A single, end-to-end provider understands the limitations and opportunities of its solutions and knows where they can be adjusted to meet their customers’ needs – and they can do it quickly because they have the expertise in-house. The result is a streamlined, future-proof solution that reduces costs, enhances reliability, and ensures the long-term success of your investment.