What is information technology (IT)?

‘IT’ generally refers to networks and devices that work together to store, control and deliver information. It’s an umbrella term that covers the creation, processing, exchange, storage and retrieval of data. IT is particularly concerned with electronic data; it’s the data processing systems that serve as the repositories of an organization’s information and is responsible for making data available to relevant users for business purposes. Enterprise resource planning (ERP) systems and cloud-based networks are examples of IT. Their main function is to ensure the proper management and security of data.

What is operational technology (OT)?

OT is the collection of hardware and software configured to trigger, control, monitor and send data to an IT system in industrial systems. Unlike IT, which is primarily connected to the Internet, OT deals primarily with physical devices. OT is used in the context of an organization’s industrial operations as it’s used to manage industrial equipment and systems, such as highly specialized systems found in energy, manufacturing, robotics, waste control, and oil and gas industries. Examples of OT include robots, industrial control systems (ICS), supervisory control and data acquisition (SCADA) systems, programmable logic controllers (PLCs), and computer numerical control (CNC). ATMs, kiosks, connected transportation, weather stations, and electric vehicle charging systems are all also considered OT. Nowadays, OT has become more advanced, integrating technology such as automation and monitoring for more seamless operations. These have helped OT devices become better linked in complex computer system networks, allowing users to perform at a much faster and more efficient rate.

Key differences between IT and OT

IT and OT are two important technological components of any organization. While they seem similar, especially in how they benefit operations, they are distinct. Here are some of their key differences: Purpose IT deals with monitoring, managing and securing core functions in data centers and the cloud. It focuses on broad business needs, such as communication, transactions and information storage. It’s primarily focused on electronic data and is centered on an organization’s front-end informational activities. By contrast, OT is related to an organization’s industrial operations and is concerned with machine-driven data, physical devices and optimizing processes. OT is related to back-end production, specifically machines. Cost IT is often more cost-effective than OT. That’s not to say that one is a more worthwhile investment than the other, especially because industrial organizations will likely require both. That said, OT is generally more expensive because it deals with machinery and will need to be maintained more often. Fortunately, entry costs of OT devices and platforms have dropped significantly, prompting companies to allocate their budgets better to come up with a productive mix of both IT and OT resources. Safety When IT fails, it affects a lot of the company’s internal operations, particularly concerning data loss. When OT fails, on the other hand, physical assets become wonky, which could lead to machine failure and stalled operations. Maturity IT devices are simpler and easier to manufacture, so they tend to last longer. In contrast, OT devices have to constantly keep up with new advances in tech, so they can become outdated (and require replacements or upgrades) much more quickly.

The question isn’t whether IT or OT is better–companies nowadays must recognize that both are needed for successful operations, but that’s also only possible when there’s convergence between the two. Tech convergence isn’t a new concept, but companies are currently exploring better ways to seamlessly integrate their IT and OT systems for a more unified and comprehensive suite, whether that’s through application portfolio management tools or asset management solutions like Flexera One. IT/OT convergence is a must in today’s business landscape because it’s key to improving efficiency, reducing errors, cutting costs, enhancing workflows and gaining competitive advantages. It’s imperative for companies who are hoping to scale operations.

IT versus OT

Definition

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Definition

Information technology (IT) and operational technology (OT) are distinct yet increasingly integrated domains in an organization's technology landscape.IT encompasses the systems, applications and networks that process, store and transmit electronic data for business operations, focusing on communication, transactions and information security. Examples include ERP systems and cloud networks. Conversely, OT refers to the hardware and software dedicated to monitoring and controlling physical devices, industrial equipment and processes. It manages industrial operations in sectors like manufacturing and energy, utilizing systems such as industrial control systems (ICS) and programmable logic controllers (PLCs).

How it works

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How it works

IT systems manage data centrally, ensuring its availability and security across the enterprise. They operate on standardized, often internet-connected networks, prioritizing data integrity and confidentiality to support business decision-making. OT systems, however, interact directly with the physical world. They use specialized, real-time control mechanisms to manage machinery and production processes. Their primary focus is on safety, reliability and continuous operation, often relying on proprietary protocols and isolated networks to ensure the stability of physical assets.

Why it matters

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Why it matters

The convergence of IT and OT is critical for modern business efficiency and competitive advantage. Integrating IT and OT allows for a seamless data flow from the factory floor (OT) to business intelligence systems (IT). This unified view enables organizations to achieve predictive maintenance, optimize resource allocation and make faster, more informed decisions. For organizations managing complex digital estates, understanding both domains is essential for effective asset management, risk mitigation and achieving operational excellence.

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IT/OT convergence

FAQs

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FAQs

What is the main difference in focus between IT and OT?

IT focuses on the security and availability of electronic data and information systems, supporting business functions. OT focuses on the safety, reliability, and continuous operation of physical assets and industrial processes.

Why is IT/OT convergence becoming a business imperative?

Convergence is imperative because it allows organizations to leverage real-time operational data for business intelligence, leading to optimized production, reduced downtime, and improved overall operational efficiency.

How does Flexera address the challenge of IT/OT convergence?

Flexera provides a unified platform that gives organizations a comprehensive, single view of all their technology assets, including both traditional IT and specialized OT devices, enabling better management, governance, and risk mitigation.