IoT Managed Services: Pros and Cons

July 18, 2022 - 6 minutes read

Today, an internet or Bluetooth-connected device such as wearable tech, home security, home goods, or something that increases work productivity is commonplace. This nearly overnight explosive popularity of internet-connected devices is not only making for an exciting new world for consumers but it’s also created the demand for top-tier IoT app development services for organizations around the world.

 As recently as 2021, there were over 46 billion IoT devices worldwide. With such a large and growing market share, a relatively new service option helps with the logistics and management of IoT devices. These are collectively known as IoT Managed Services, and this type of service is almost a necessity on a commercial level.

As a leading west-coast digital innovation firm with a presence in San Diego, Los Angeles and Seattle, we thought it would be valuable to do a deep dive on the presence and importance of today’s IoT manager services. Without further wait, let’s dig in!

IoT Managed Services 

IoT is a broad term. It encompasses simple devices such as a wireless socket that users can program to control lights or timers. Or there are sophisticated industrial tools like self-driving automated tractors. Many IoT objects use sensors, cameras, and software to interact with the physical world, collecting and sharing data over Bluetooth or a network.

 IoT Managed Services provide a holistic approach to developing, executing, and supporting an IoT device. These service providers help companies that might otherwise struggle with resources, experience, or infrastructure to maintain and scale their IoT devices.

 IoT Managed Services act like many other service providers we use, with a few of the larger IoT managed service companies being AT&T and Verizon. Many IoT Managed Service providers monitor and operate the entire IoT ecosystem, offering different features and services such as performance optimization and data analysis.


One of the most significant benefits of IoT Managed Services is a dedicated company taking a potentially laborsome set of tasks off your hands. Like other tech products, the challenge of IoT devices is the sustainment aspect, especially if it remains on the market for many years. Hiring an IoT Managed Service company provides the most value in this area. The team assigned to your IoT project are experts in their fields, understanding the scope and potential pitfalls of launching and maintaining IoT devices.

 IoT Managed Service providers work best when they are involved in every step of the IoT process. Since their only focus is your IoT device, the time required for development and implementation becomes more streamlined, often without compromising quality. Leveraging the professional expertise for development, testing, and launch to sustainment may prove cost-effective in the long run as the potential for expensive mistakes is less likely with a dedicated team.


The most significant consideration for most individuals or companies is cost. For large-scale commercial endeavors, the cost associated with outsourcing an IoT Managed Service provider isn’t as prohibitive. However, paying for IoT Managed Services may not be possible for small businesses or a small team of developers.

 Because the IoT Managed Service provider team will be comprised of people outside the company, there is the possibility of incompatibility and an onboarding period as the new team learns about your company and culture. Even then, gaps in the IoT Managed Service provider team and the employees that work with them may still exist.

 Almost all agreements with an IoT Managed Service provider are covered with a service level agreement (SLA). No matter how detailed or thorough the SLA is, it is impossible to think of everything. If a problem or other issue arises that is out of the scope of the SLA, the IoT Managed Service provider may not handle it.

 Sometimes partnerships just don’t work, and it is best for both parties to end an agreement. When working with third-party vendors, such a possibility is a genuine concern. Should you need to change IoT Managed Service providers, there is a real possibility of a challenging and prolonged process, especially if there is a less than amicable separation.

Final Thoughts 

IoT Managed Services is a growing and increasingly important part of any IoT device at scale. Despite the potential costs associated with IoT Managed Services, the potential to bring in a team of experts is worth a serious look.

 Dogtown Media has extensive experience as a dedicated IoT Managed Service provider. We understand your IoT project’s importance and are committed to being your partner from ideation to launch. Take advantage of our free consultation to see how we can help bring your IoT device to market.


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