Add strategic direction document

STRATEGY.md

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+# Strategic Direction
+
+## Executive Summary
+
+**Mission**: Bridge the OT/IT gap for small-to-mid manufacturers through edge-first industrial IoT solutions.
+
+**Vision**: Become the trusted partner for manufacturers who want modern visibility without cloud vendor lock-in.
+
+**Positioning**: "The OT/IT translator for manufacturers who value data sovereignty and predictable costs."
+
+## Market Opportunity
+
+### The Problem
+
+- **OT/IT Skills Gap**: Controls engineers don't understand cloud; cloud engineers are terrified of PLCs
+- **Enterprise Solutions Too Expensive**: Siemens, Rockwell, GE solutions cost $50k-500k+
+- **Cloud Skepticism**: Manufacturing companies hesitant about AWS/Azure due to data sovereignty, vendor lock-in
+- **Brownfield Challenges**: Legacy equipment needs connectivity but can't afford rip-and-replace
+
+### The Opportunity
+
+**Market Size:**
+- Industrial IoT Platform Market: Growing at 13-47% CAGR
+- Virtual PLC Market: $1.8B (2025) → $3.6B (2032)
+- Digital Twin Market: $21B (2025) → $150B (2030)
+
+**Underserved Segment:**
+- 20-100 employee manufacturers
+- $10-100M annual revenue
+- 1-5 production lines
+- Aging infrastructure
+- No dedicated IT staff
+
+**Market Gaps:**
+- Enterprise solutions too expensive for SMB
+- Cloud-first vendors don't address data sovereignty concerns
+- Most MSPs lack OT expertise
+- Virtual PLCs still <5% of market (huge whitespace)
+
+## Competitive Advantages
+
+### 1. Rare Skill Combination
+- 13 years PLC programming (Allen-Bradley, Siemens)
+- 4 years cloud engineering
+- Speaks both OT and IT languages fluently
+
+### 2. Edge-First Architecture
+- On-premise or customer hardware deployment
+- No forced cloud migration
+- Works offline (critical for manufacturing)
+- Sub-10ms latency for control applications
+
+### 3. Bootstrap Economics
+- No VC required
+- Customer-funded growth model
+- Start with $500 capital
+- Scale with cash flow
+
+### 4. No AWS Conflict
+- Positioned as complementary, not competitive
+- Can integrate WITH AWS/Azure if customer wants
+- Focus on edge processing layer
+- Targets AWS non-customers (data sovereignty crowd)
+
+### 5. Platform Expertise
+- LXC container experience from ZeroLagHub
+- Multi-tenant architecture proven
+- Can scale efficiently
+
+## Strategic Positioning
+
+### What We Are
+
+**"The Edge-First Industrial IoT Partner"**
+- OT/IT integration specialist
+- Edge monitoring and control
+- Data sovereignty advocate
+- Predictable cost alternative to cloud vendors
+
+### What We're NOT
+
+- Cloud platform replacement (we're edge-first)
+- Enterprise software vendor (we're bootstrap/agile)
+- Controls-only integrator (we bridge to IT/analytics)
+- Hardware vendor (we're platform-agnostic)
+
+## Target Customer Profile
+
+### Ideal Customer Characteristics
+
+**Company Profile:**
+- 20-100 employees
+- $10-100M annual revenue
+- Discrete manufacturing, food/bev, or packaging
+- 1-5 production lines
+- Some existing PLCs/SCADA
+- Limited IT resources
+
+**Pain Points:**
+- "We have no visibility into production"
+- "Our data is trapped in PLCs"
+- "We can't afford Siemens/Rockwell"
+- "We don't trust cloud vendors with our data"
+- "We need better OEE tracking"
+
+**Buying Triggers:**
+- New plant manager wants KPIs
+- Quality issues requiring root cause analysis
+- Customer audit requirements
+- Capital budget available ($15k-50k)
+- Regulatory compliance needs
+
+**Decision Makers:**
+- Plant Manager (primary)
+- Maintenance Manager (influencer)
+- Operations Director (budget holder)
+- IT Manager (occasional gatekeeper)
+
+## Business Model Evolution
+
+### Phase 1: Consulting (Months 1-3)
+- **Service**: OT/IT integration projects
+- **Revenue**: $150-200/hour or $15k-40k per project
+- **Purpose**: Cash flow, market validation, network building
+
+### Phase 2: Platform (Months 4-9)
+- **Service**: Edge monitoring + consulting hybrid
+- **Revenue**: $1k-2k/month recurring + project fees
+- **Purpose**: Transition to recurring revenue, build infrastructure
+
+### Phase 3: Premium AI (Months 10-18)
+- **Service**: Predictive maintenance, computer vision
+- **Revenue**: $4k-8k/month premium tier
+- **Purpose**: Differentiation, margin expansion, moat building
+
+## Competitive Strategy
+
+### Against Enterprise Vendors (Siemens, Rockwell, GE)
+
+**Their Strengths:**
+- Brand recognition
+- Comprehensive solutions
+- Deep pockets
+- Existing customer relationships
+
+**Our Response:**
+- Target customers they ignore (too small)
+- 10x faster deployment (weeks vs months)
+- 10x lower cost ($20k vs $200k)
+- More flexible (no vendor lock-in)
+
+### Against Cloud-First Vendors (AWS IoT, Azure)
+
+**Their Strengths:**
+- Scalability
+- Feature breadth
+- Marketing budgets
+- Integration ecosystem
+
+**Our Response:**
+- Target data sovereignty conscious customers
+- Edge-first (works offline)
+- Predictable costs (no per-message fees)
+- OT expertise (we understand PLCs)
+
+### Against Traditional MSPs
+
+**Their Strengths:**
+- Existing relationships
+- IT expertise
+- Support infrastructure
+
+**Our Response:**
+- OT expertise they lack
+- Manufacturing-specific knowledge
+- Can actually program PLCs
+- Understand production environments
+
+## Growth Strategy
+
+### Year 1: Establish & Validate
+
+**Goals:**
+- 10-15 customers
+- $35k/month recurring revenue
+- 5-10 case studies
+- Network of 50+ manufacturing contacts
+
+**Tactics:**
+- Personal network outreach
+- LinkedIn content (OT/IT bridge positioning)
+- Local ISA chapter participation
+- Referral program
+
+### Year 2: Scale & Systemize
+
+**Goals:**
+- 30-40 customers
+- $80k-120k/month revenue
+- 2-3 employees/contractors
+- Standardized processes
+
+**Tactics:**
+- Content marketing
+- Partner with system integrators
+- Attend trade shows (Pack Expo, Automate)
+- Channel partnerships
+
+### Year 3: Expand & Dominate
+
+**Goals:**
+- 60-80 customers
+- $200k+/month revenue
+- 5-8 team members
+- Regional presence
+
+**Tactics:**
+- Geographic expansion
+- Vertical specialization
+- Partner ecosystem
+- Potential acquisition targets
+
+## Risk Mitigation
+
+### Key Risks
+
+1. **AWS Non-Compete Violation**
+   - Mitigation: Edge-first positioning, target non-AWS customers
+   
+2. **Slow Customer Acquisition**
+   - Mitigation: Start with network, consulting cash flow buffer
+   
+3. **Technical Complexity**
+   - Mitigation: Start simple (monitoring only), add features gradually
+   
+4. **Competition from Established Players**
+   - Mitigation: Focus on underserved segment, move fast
+
+5. **Cash Flow During Build Phase**
+   - Mitigation: Consulting revenue funds platform development
+
+## Success Metrics
+
+### Phase 1 (Months 1-3)
+- [ ] 2-3 completed consulting projects
+- [ ] $20k-45k revenue generated
+- [ ] 5+ discovery calls completed
+- [ ] 1 case study published
+
+### Phase 2 (Months 4-9)
+- [ ] First GTHost server deployed
+- [ ] 5-8 recurring customers
+- [ ] $10k-15k MRR achieved
+- [ ] Multi-tenant architecture proven
+
+### Phase 3 (Months 10-18)
+- [ ] GPU server operational
+- [ ] 12-20 total customers
+- [ ] $35k+ MRR achieved
+- [ ] First contractor hired
+
+## Strategic Principles
+
+1. **Bootstrap Always**: Never take funding if avoidable
+2. **Customer-Funded Growth**: Use their projects to build platform
+3. **Edge-First Forever**: Cloud is optional, edge is mandatory
+4. **OT/IT Bridge**: Always position as the translator, never just one side
+5. **Slow is Smooth, Smooth is Fast**: Quality over speed
+6. **Data Sovereignty**: Customer owns their data, always
+7. **No Vendor Lock-In**: Platform-agnostic, standards-based
+8. **Manufacturing-First**: Build for production environments, not IT labs
+
+---
+
+*Last Updated: December 2025*