Hybrid manufacturing machine tools have the potential to be a disruptive technology as they can leverage the benefits of both additive and subtractive manufacturing by incorporating both processes on the same machine while limiting the downsides of the individual processes. Since these machines use two very disparate manufacturing processes and hybrid manufacturing is an emerging technology, it will be useful to monitor data coming from the machine and apply it to improve the manufacturing process, the operation of the machine, and to integrate the machine into the larger digital framework of Industrial Internet of Things (IoT). The present work discusses IoT devices that would be beneficial to add to a hybrid machine tool as well as applications for those devices. The proposed methods discussed in this work have not been experimentally implemented on a hybrid machine tool and so there are no performance data available yet. The hybrid machine tool used as a basis to generate these IoT applications is the Mazak VC-500A/5x AM Hot Wire Deposition, which is a 5-axis machine tool incorporated with a wire feedstock 4kW laser deposition system. Methodologies and applications will be outlined for machine health and process monitoring. Other areas covered include process benchmarking, secure networking options for the proposed IoT framework, and hybrid process improvement. Limitations of these methods and future work for new sensor devices and application areas is also discussed.