Reading a rotary encoder using a microcontroller and converting to Serial TTL?

Question

I have an incremental rotary encoder (Bournes-EMS22Q) that I would like to have available on a wired network via RJ45 or via serial TTL (we have a serial-to-ethernet converter we can use Netburner SBL2E). This seems like a fairly simple problem however the more I look into it the more complex it gets, there doesn't seem to be an off-the-shelf solution and it looks like I'll have to make something myself.

Has anyone come across this problem before? How can I get from the encoder output (5 pin) to serial/ethernet?

I'm now looking at a chip-level solution using this 32-bit Quaderature Counter which gives me an SPI output but how do I go from SPI in this case to serial TTL/Ethernet? Will I need to use a microcontroller?

Is there a magical hardware component that I'm missing? Any recommendations on how to solve this problem greatly appreciated.

Answer 1

You need a microcontroller and custom firmware to read and interpret the encoder then transmit the message over serial. In essence, you have to do it manually. No magic pre-packaged solution.

If unfamiliar with microcontrollers, you can try a PICAXE or Arduino.