A target graphic illustrating that OEMs should focus on machines and service, while outsourcing IoT infrastructure to a partner.

Build vs. Buy: Choosing the Right Tech Stack for Your Managed Equipment Services

Written by: Robert Liao

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Published on

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Time to read 5 min

Author: Robert Liao, Technical Support Engineer

Robert Liao is an IoT Technical Support Engineer at Robustel with hands-on experience in industrial networking and edge connectivity. Certified as a Networking Engineer, he specializes in helping customers deploy, configure, and troubleshoot IIoT solutions in real-world environments. In addition to delivering expert training and support, Robert provides tailored solutions based on customer needs—ensuring reliable, scalable, and efficient system performance across a wide range of industrial applications.

Summary

The decision to "Build" or "Buy" the technology stack for managed equipment services is the most critical strategic choice an OEM will make. This guide dissects the true costs and risks of building a custom IoT platform versus licensing a proven solution like RCMS. We analyze the hidden dangers of "Technical Debt," security maintenance, and delayed time-to-market. Ultimately, we demonstrate why "Buying" (and white-labeling) allows OEMs to focus on their core competency—machines and services—rather than becoming an accidental software company.

Key Takeaways

The "Free" Illusion: Building your own platform seems cheaper initially (no license fees), but the long-term costs of maintenance, security, and hosting are 5-10x higher.

Time-to-Market: A "Buy" strategy launches your managed equipment services in weeks. A "Build" strategy takes 18-24 months, giving competitors a massive head start.

Focus on Value: Your customers pay for machine uptime, not for your custom-coded middleware. Buying a platform lets you focus on the service, not the plumbing.

The Hybrid Model: The best approach is often "Buy the Plumbing, Build the Value." Use a commercial platform (like RCMS) for device management and build your unique dashboards on top via API.

Build vs. Buy: Choosing the Right Tech Stack for Your Managed Equipment Services

You have decided to launch managed equipment services. You have a vision of predictive maintenance, recurring revenue, and happy customers. Now, you face the classic dilemma: Build vs. Buy.

Should you hire a team of developers to build a proprietary IoT platform from scratch? Or should you license a proven, off-the-shelf solution?

For many engineering-led OEMs, the instinct is to build. "We are engineers! We can build anything! Why pay a monthly fee?"

This instinct is dangerous. In the world of IoT, "Building" is often a trap that leads to delayed launches, security breaches, and spiraling costs. This guide explains why "Buying" is the smarter, faster, and more profitable path for your managed equipment services.


A graphic illustrating the time-to-market advantage of buying an IoT platform versus building one from scratch.


The "Build" Trap: Why Custom Software Kills Projects

When you scope a "Build" project, you see the tip of the iceberg: "We just need a database and a dashboard."

You miss the 90% of the iceberg that sinks the ship:

  1. Device Management: How do you handle OTA firmware updates for 5,000 devices?
  2. Security: How do you encrypt data, manage certificates, and penetration-test your cloud?
  3. Scalability: What happens when your database hits 1 billion rows of sensor data?
  4. Maintenance: Who fixes the bugs at 3 AM on a Sunday? Who updates the code when AWS changes its API?

If you build it, you own it. You are no longer just a machine builder; you are now a software company. Most OEMs underestimate this burden. They spend years building "plumbing" and never get to launch their managed equipment services.

The "Buy" Advantage: Speed and Focus

"Buying" doesn't mean getting a generic product. It means licensing a specialized platform like Robustel's

Add One Product: RCMS

.

  • Immediate Launch: You can connect your first machine today. Your managed equipment services are live in weeks, not years.
  • Proven Security: You inherit a platform that is already IEC 62443 aligned and penetration-tested.
  • Predictable Cost: You pay a flat fee per device. There are no surprise server bills or emergency consulting fees.

The Financial Showdown: TCO Analysis

Let's look at the 3-year Total Cost of Ownership (TCO) for a fleet of 1,000 machines.


Cost Category

"Build" (In-House)

"Buy" (Robustel RCMS)

Initial Dev Team

$500,000+ (3 Engineers, 1 Year)

$0

Cloud Hosting

$20,000 / year (and growing)

Included

Maintenance

$150,000 / year (1 Engineer)

Included

Security Audits

$30,000 / year

Included

License Fees

$0

~$60,000 / year

3-Year Total

~$1,000,000+

~$180,000


The "Build" option is 5x more expensive. And that doesn't include the opportunity cost of delaying your managed equipment services revenue by 18 months while you write code.


An iceberg diagram showing the massive hidden costs of building a custom IoT platform compared to the transparent cost of licensing.


The Strategic Compromise: White-Labeling

"But we want it to look like our product!"

You are right. Your customers should see your brand, not Robustel's.

The solution is White-Labeling. A platform like RCMS allows you to:

  • Use your logo and colors.
  • Host it on your URL (e.g., iot.your-company.com).
  • Create custom sub-accounts for your customers.

You get the speed and cost of "Buying" with the branding and ownership of "Building." It is the perfect foundation for managed equipment services.

Conclusion: Don't Reinvent the Wheel

Your core competency is building world-class machines and keeping them running. It is not building cloud infrastructure.

By choosing to "Buy" (or partner), you accelerate your time-to-revenue. You reduce your risk. You free up your engineering resources to focus on what makes your managed equipment services unique: the data insights, the predictive algorithms, and the customer experience.

Don't build the road; just drive the car.


A target graphic illustrating that OEMs should focus on machines and service, while outsourcing IoT infrastructure to a partner.


Frequently Asked Questions : About managed equipment services

Q1: Can I integrate a "Bought" platform with my existing ERP?

A1: Yes. A professional IoT platform like RCMS has an open API. You can easily pipe data from RCMS into SAP, Salesforce, or your own internal tools. This gives you the best of both worlds: a robust device management backend ("Bought") and a custom business integration ("Built").

Q2: What if the platform provider goes out of business?

A2: This is a valid risk. Choose a partner with a long track record and stable financials (Robustel has been in business since 2010). Also, ensure you own the data. A good platform allows you to export your historical data at any time, ensuring your managed equipment services are never held hostage.

Q3: Does "Buying" limit my ability to customize features?

A3: To some extent, yes. You trade infinite flexibility for speed and stability. However, for 95% of managed equipment services, the standard features (monitoring, alerts, VPN, reporting) are exactly what you need. For the unique 5% (like a specific AI model), advanced gateways (like the EG5120) allow you to run custom code on the device via Docker, giving you flexibility where it counts.