IIoT Insights

What to Build vs. What Not to Build in Industrial IoT

Written by Lauren Markofsky | February 04, 2026

After the excitement of a DIY IIoT prototype fades, most teams face the same question: what should we actually own long term, and what should never be our responsibility? The answer is rarely “build everything” or “buy everything.” The most effective IIoT strategies draw a clear line between differentiation and repeatable platform capability.

 

Start with this rule of thumb

If a capability directly defines your customer value, service model, or proprietary insight, it may be worth building.

If a capability needs to work securely and consistently across every deployment, it belongs in a platform, not a custom build.

This distinction is less about whether something is customer-facing and more about repeatability and operational responsibility.

Secure connectivity, device management, and even standardized IIoT applications often fall into this category. They are essential, broadly applicable, and must be maintained continuously. That makes them strong candidates for platform-managed functionality rather than one-off internal development.

 

What does make sense to build

✅ Customer- and application-specific logic

Dashboards, workflows, alerts, and analytics that reflect how your machines, customers, or service contracts operate are rarely generic. This is where domain expertise creates real value.

✅ Proprietary algorithms and IP

If you are developing unique diagnostics, optimization logic, or insights tied directly to your equipment or processes, this is core intellectual property and should remain internal.

✅ Service differentiation layers

How insights are packaged, delivered, and monetized is often where OEMs and manufacturers truly compete.

In short, build where your knowledge of machines and customers gives you an advantage that others cannot easily replicate.

 

What usually should not be built in-house

This is where DIY IIoT quietly becomes expensive.

⚠️ Secure connectivity and remote access

Authentication, encryption, credential rotation, audit logging, and access control are not one-time features. According to the National Institute of Standards and Technology (NIST), industrial systems require continuous security lifecycle management, not static defenses.

The Cybersecurity and Infrastructure Security Agency further emphasizes that unmanaged remote access and insecure connectivity are among the most common entry points for attacks on industrial environments. These controls must be implemented consistently and maintained operationally, not improvised per deployment.

⚠️ Device and gateway lifecycle management

Provisioning, patching, compatibility testing, and long-term support across heterogeneous industrial environments consume far more time and effort than most teams expect.

⚠️ Scalability and resilience infrastructure

Graceful failure handling, uptime guarantees, and multi-customer scaling are infrastructure problems. They are necessary, but they are not differentiators.

 

Where AI changes the equation, and where it doesn’t

AI-assisted development has made it easier than ever to build quickly. That is a real advantage for experimentation, internal tools, and early prototypes.

But AI does not remove the need for deterministic behavior, long-term maintainability, or secure-by-design architectures. In IIoT systems connected to real machines, speed of creation matters far less than durability, predictability, and trust.

Fast code is not the same as reliable infrastructure.

 

A simple decision framework

Before building any IIoT component, ask:

  1. Does this directly differentiate our customer value or service model?
  2. Would failure here create operational, security, or reputational risk?
  3. Will this require ongoing security and maintenance for years?
  4. Is this a problem that must work the same way across every customer?

If the answer to the last question is yes, it is usually better treated as platform functionality.

 

The hybrid model most teams choose

In practice, many OEMs and manufacturers adopt a hybrid approach:

  • A proven IIoT platform for secure connectivity, device management, and lifecycle operations
  • Internal teams focused on applications, analytics, and service differentiation

The ei³ platform is designed to support this model by providing secure industrial connectivity and no-code IIoT applications that work across machines and deployment scenarios, without forcing teams to rebuild infrastructure for every use case.

The real goal

The goal is not to avoid building. It is to build the right things.

When internal teams focus on insight, service value, and customer outcomes rather than infrastructure maintenance, IIoT becomes a growth engine instead of a long-term liability.