By Małgorzata Kawałkowska, Business Researcher
Microsoft Azure offers a wide range of IoT services, making it essential to choose the right solution for your business needs. Two of the most commonly compared services are Azure IoT Hub and Azure IoT Central. But how do they differ, and which one is the best fit for you? Let’s break it down!
Understanding the Core Difference
To make things simpler, I consulted Łukasz Marcinek, Head of Cloud Engineering, to explain how these two Azure IoT services stack up against each other.
What is Azure IoT Hub?
IoT Hub is a cloud-hosted backend solution that operates in a Platform-as-a-Service (PaaS) model. Think of it as a message broker between IoT devices and the cloud. It offers:
✅ Advanced Device Management – Securely connect, monitor, and manage millions of devices.
✅ Integration Capabilities – Seamlessly integrate with Azure Event Hubs, Azure Functions, Azure Time Series Insights, and Azure Cosmos DB.
✅ Enhanced Security – Provides authentication, per-device identity, and secure communication.
✅ Scalability – Ideal for businesses needing a flexible, customized IoT architecture.
What is Azure IoT Central?
IoT Central, on the other hand, is a Software-as-a-Service (SaaS) solution designed for quick and easy IoT deployment. It provides:
✅ Plug & Play Setup – Pre-configured templates for rapid deployment. ✅ Centralized Management – Monitor and manage all connected devices from a single dashboard.
✅ Minimal Technical Expertise Required – Ideal for businesses without in-house developers.
✅ Fixed Pricing Model – Simplifies budgeting with predictable costs.
IoT Hub vs IoT Central: A Side-by-Side Comparison
| Feature | IoT Hub | IoT Central |
|---|---|---|
| Flexibility | Highly customizable | Limited customization |
| Ease of Use | Requires development skills | No coding required |
| Integration | Works with various Azure services | Limited to built-in integrations |
| Cost Model | Pay-per-message | Pay-per-device |
| Best For | Large-scale, custom IoT solutions | Quick deployment, low maintenance |
Cost Considerations
IoT Hub Pricing:
- Charged based on the number of messages per day.
- Offers greater flexibility for optimizing costs based on usage.
IoT Central Pricing:
- Charged per connected device with fixed monthly plans.
- Predictable but less flexible cost structure.
Which is cheaper? If you have a large number of devices but lower message volume, IoT Hub may be the more cost-effective option.
⚡ Real-World Use Cases: When to Choose Each Service
Use IoT Hub if:
✅ You need custom development and advanced integrations.
✅ You have an in-house IoT development team.
✅ You require high-volume data processing.
Use IoT Central if:
✅ You need a ready-to-use, fully managed solution.
✅ Your team lacks deep technical expertise.
✅ You want quick deployment with minimal setup.
Flexibility
In the case of IoT Central, we can’t really modify it to our specific needs – we are bound by the limitations of a ready-to-use SaaS solution. In contrast, IoT Hub gives us much more flexibility. We can freely shape the way it’ll work based on the results we want to achieve.
Level of technical skills
IoT Hub requires that you have access to software development skills and knowledge because, as a PaaS, it’s more complex in implementation. For example, it’s on the user to figure out and develop where the data will be stored, processed and presented.
Thanks to its template-based approach, IoT Central is easier to configure and manage, even without specialised know-how. A user doesn’t have to develop anything on their own, so no coding or cloud skills are needed. All the essential background for connecting, managing and monitoring IoT devices is there, ready to be used.
Maintenance
IoT Hub offers greater flexibility for modification, but that involves greater responsibility too since the maintenance is entirely on the user’s side. For IoT Central, it’s just the opposite – Microsoft is fully responsible for all the maintenance.
IoT hub vs IoT Central – which one will suit your needs best?
IoT Central is mostly used by organisations without sufficient cloud skills and knowledge. It’s a ready-to-use solution with user-friendly dashboards that simplify connecting and managing devices within the cloud. However, before you decide on Azure IoT Central, make sure it offers all the options you need. It may also turn out that IoT Central is a too complex service for your needs and you’ll end up paying for features you don’t use.
IoT Hub requires manual configuration, so it’s instead recommended to companies, which have access to a team of cloud specialists experienced in implementing such solutions. If you have experienced developers on the team, IoT Hub will be the way to go, as you’ll have the necessary resources to adjust the solution to the changing needs of your growing business.
However, even if you don’t hire in-house developers, you don’t have to resign from the flexibility that Azure IoT Hub offers. You can ask us for support.
FAQs: Answering Your IoT Hub vs IoT Central Questions
❓ What is Azure IoT Hub used for?
IoT Hub is a flexible, scalable solution for securely connecting and managing millions of IoT devices.
❓ Who should use Azure IoT Central?
Businesses looking for a simplified IoT solution with minimal setup and maintenance should opt for IoT Central.
❓ Can IoT Hub and IoT Central work together?
Yes! Some businesses use IoT Hub for backend processing while leveraging IoT Central for visualization and management.
❓ Which service is better for startups?
IoT Central is generally better for startups due to its ease of use and predictable costs.
Final Thoughts: Which One is Right for You?
Your decision between Azure IoT Hub vs IoT Central comes down to your technical expertise, scalability needs, and cost expectations. If you need customization and scalability, go with IoT Hub. If you prefer simplicity and ease of management, IoT Central is the way to go.
Still unsure? We’re here to help! Contact us for expert guidance on choosing the right Azure IoT service for your business.