IT and Business Insights for SMB Solution Providers

The White-Box IoT Hardware Opportunity

System builders that combine white-label IoT hardware with software, consulting, and installation to provide a total solution can drive new profits. By James E. Gaskin

AS COMPANIES INSTALL more Internet of Things devices for projects like monitoring equipment, tracking inventory, or dispensing break-room snacks, they need more gateways and other upstream hardware to support those functions. Strategy Analytics found some 44% of companies already use edge computing to support IoT devices and expects that figure to reach 59% by 2025. Should system builders be selling them that hardware? If so, is there an advantage for integrators to use white-box hardware?

White-box hardware has plenty of growth options in the near term, according to Maria Yang, product marketing engineer at American Portwell Technology, which sells white-label IoT products. “Morgan Stanley predicts the industrial IoT market to reach $110 billion by 2020,” she says. Nearly 20% of all IoT projects are in industrial applications.

The enterprise IoT market alone is $18 billion today and is projected to grow to $58 billion by 2023, says Kevin Tate, chief revenue office at Rigado, a provider of wireless device-to-cloud edge connectivity and computing, referencing recent studies. And even though IoT sensor and other hardware costs have come down, the business value from those inexpensive hardware components keeps going up.

Kevin Tate

For example, Tate says, “Bluetooth alone is forecast to grow 10x in smart buildings over the next five years. This aligns with what we’ve seen in our partner base, where the leading adopters have shifted from pilot to production, and demand is increasing as their end users scale up.” Often, IoT projects that start as a single-use application grow into broader “smart spaces” initiatives, he adds, “leading to more opportunities for system builders to capture revenue.”

The types of hardware used in such projects, says Tate, include sensors, beacons, and edge compute gateways. These are typically packaged together into an IoT offering, and system builders can vary the type and number of devices for different applications.

Yang doesn’t believe most end users will have enough knowledge or expertise to put together a full IoT implementation. “However, we believe that system builders are more capable of using white-box hardware for their end-user clients.”

Getting Started

When evaluating IoT appliances, system builders should look for “a variety of features including connectivity and expansion, ruggedized design, fast time to market, and low power consumption,” says Yang.

Today’s gateway solutions are getting more resilient as well, she adds. “Our IoT gateways are designed for industrial environments, such as a warehouse with no air conditioning.” Back-end servers should offer several networking ports and the computing power to enable needed smart functions and high data transaction rates between the gateway and the cloud.

In addition to Portwell and Rigado, a few of the primary players that sell or help integrators create white-label IoT hardware include the major tech distributors, most of which now have IoT departments to help integrators design, prototype, and produce IoT hardware. In addition, Microsoft offers multiple programs to help integrators connect devices to the cloud for data collection and analysis, focusing on Azure.

About the Author

James E. Gaskin's picture

JAMES E. GASKIN is a ChannelPro contributing editor and former reseller based in Dallas.

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