The convergence of Information Technology (IT), the Internet of Things (IoT), and Operational Technology (OT) is reshaping industries, yet OT remains deeply rooted in its on-premises heritage. Industry trends estimate that 80-90% of OT systems are still managed locally, reflecting a historical preference for air-gapped or minimally connected setups to ensure uninterrupted operations in critical infrastructure. A prime example is the Programmable Logic Controller (PLC), a rugged industrial computer that automates processes like running assembly lines in manufacturing, regulating power grids in energy, or controlling water treatment in utilities. PLCs, with lifecycles often spanning 20-30 years, are built for reliability but rarely designed for cloud connectivity, anchoring many OT environments to legacy systems.
Thes systems are often incompatible with cloud connectivity. Recent market analyses highlight a slow but growing shift toward hybrid and cloud-based solutions, with cloud adoption in OT security and management projected to rise significantly—though it still lags on-premises dominance. This hesitancy stems from concerns over latency, cybersecurity risks, and regulatory compliance, particularly in sectors where downtime or breaches could have catastrophic consequences.
For CISOs, CIOs, and CTOs, navigating this transition is a strategic imperative. In this blog, we’ll explore four key points to help technology leaders prepare for this convergence and embrace a future-ready approach. During my three plus years at Boston Meridian we have come across a lot of exciting companies working in OT and helping to bridge the gap. The main topic of discussion coming up seems to be that of “active” vs “passive” or agent vs agentless based solutions. This is a tricky world to navigate because of the legacy of OT systems and the fact many of these operational systems are shifting over to the technical and security teams for monitoring. This requires architecture discussions and how to adopt new and emerging technologies for OT.
- The On-Premises OT Landscape and Emerging Cloud Adoption
With 80-90% of OT systems still on-premises, industries prioritizing control—like manufacturing with its PLCs and SCADA, or energy with its grid management—favor localized setups to mitigate risks. However, IoT integration is nudging these sectors toward hybrid models, where cloud solutions enhance monitoring and analytics while preserving on-premises stability. Understanding this shift’s pace is critical for aligning with industry-specific needs. - Why Hybrid Environments Are the Sweet Spot
A hybrid approach blends on-premises reliability with cloud flexibility, delivering tailored benefits across OT-reliant sectors. It enables real-time insights and predictive maintenance—think centralized oversight for utilities or optimized logistics in transportation—all while maintaining security. This balance is especially appealing for industries like manufacturing and energy, where legacy systems must coexist with modern demands. - Strategic Choices: Cloud, On-Premises, or a Blend?
The path forward varies by industry. Staying on-premises offers control, crucial for oil and gas pipelines or healthcare’s smart systems, but limits scalability. Full cloud adoption suits data-driven monitoring in logistics yet risks latency in time-sensitive OT processes. A hybrid model often strikes the right chord—cloud analytics for non-critical workloads paired with local control for mission-critical operations—allowing leaders to tailor strategies to their sector’s realities. - Leveraging AI, ML, and Vulnerability Analysis as the Convergence Catalyst
Artificial Intelligence (AI) and Machine Learning (ML) transform raw data from IoT, IT, and OT systems into actionable intelligence, revolutionizing both architecture design and monitoring. In architecture design, AI-driven simulations help leaders model resilient hybrid environments, optimizing data flows between on-premises OT and cloud-based IT systems.
For example, in manufacturing, AI can predict how IoT sensors integrate with legacy PLCs, ensuring low-latency performance. ML algorithms refine these designs by learning from operational patterns, enabling adaptive architectures that scale securely—critical for energy grids or transportation networks. For monitoring, AI-powered anomaly detection identifies deviations in real-time, such as unusual equipment behavior in utilities or traffic anomalies in logistics, flagging potential failures before they escalate.
ML enhances this by continuously improving detection accuracy, learning from historical OT data to reduce false positives. Vulnerability analysis, a key AI/ML application, strengthens cybersecurity across converged environments. By scanning IoT devices, IT networks, and OT systems, AI identifies weaknesses—like outdated firmware in healthcare devices or misconfigured SCADA systems in oil and gas—prioritizing risks based on exploitability.
This proactive approach helps CISOs design segmented architectures that isolate critical OT assets while enabling secure cloud monitoring. Together, these technologies empower leaders to build robust, future-proof systems and maintain vigilant oversight, turning convergence into a competitive advantage.
Industries Poised to Benefit
This convergence impacts on a range of OT-dependent verticals, each with unique stakes:
- Manufacturing: Industrial control systems and automation stand to gain from hybrid monitoring and AI-driven maintenance.
- Energy and Utilities: Grid and water management can leverage cloud analytics while securing critical infrastructure.
- Oil and Gas: Remote pipeline operations benefit from hybrid scalability without compromising safety.
- Transportation and Logistics: Real-time coordination improves with AI and hybrid visibility.
- Healthcare: Emerging OT in smart hospitals gains efficiency and security through strategic integration.
For technology leaders across these sectors, the IT/IoT/OT convergence demands action. What is the call to action:
Don’t wait for your organization to ask “what are we doing about OT?”. I know many of my peers are busy with the day to day, “blocking and tackling” and might feel they don’t have the time to look at this. You have to make the time.
Begin by assessing your infrastructure, how can cloud integration enhance your OT systems? Craft a roadmap balancing on-premises strengths with hybrid innovation, and harness AI to unlock data-driven potential. Whether you prioritize cloud agility, reinforce on-premises control, or blend both, preparation is key. Don’t underestimate the value of building architecture diagrams of the different systems. Make sure you have a strategy around vulnerability analysis and visibility. Finally, it’s about resilience and recovery as you WILL have issues. The adversaries are relentless and have more and more tools at their disposal every day.
In a few weeks I will be at the 2025 RSA Conference in San Francisco. I along with the team at Boston Meridian Partners would be happy to chat about the state of the markets or help you navigate the M&A process. Please reach out to us via our webpage and LinkedIn below.
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About the author
Shawn Andersonhas an extensive background in cybersecurity, beginning his career while serving in the US Marine Corps. He played a significant role as one of the original agents in the cybercrime unit of the Naval Criminal Investigative Service.
Throughout his career, Mr. Anderson has held various positions, including Security Analyst, Systems Engineer, Director of Security, Security Advisor, and twice as a Chief Information Security Officer (CISO). His CISO roles involved leading security initiatives for a large defense contractor’s intelligence business and an energy company specializing in transporting environmentally friendly materials.
Beyond his professional achievements, he is also recognized for his expertise in the field of cybersecurity. He is a sought-after speaker, writer, and industry expert, providing valuable insights to both C-Suite executives and boards of directors.
Currently, Mr. Anderson serves as the Chief Technology Officer (CTO) for Boston Meridian Partners. In this role, he evaluates emerging technologies, collaborates with major security providers to devise cybersecurity strategies, and delivers technological insights to the private equity and venture capital community.
Overall, Shawn Anderson’s career journey showcases a wealth of experience in cybersecurity and leadership roles, making him a respected and influential figure in the industry.