How you can save over 30% on your business IoT
When implementing an Internet of Things (IoT) application, a platform solution with the right partner, can save you 33% over self-build infrastructure. IoT presents a tremendous opportunity for you to exploit the monitoring, management and control of the ‘things’ in your business remotely. Forecasts from IDC indicate that billions of things will be connected worldwide by 2020, and companies are citing “internal productivity and efficiency” as the primary drivers for this momentum toward IoT investments. However, there is a complex equation of factors to consider in a business plan, with unique challenges regarding Operations, Scale, Cost and Customer Service.
Where do the major business cost contributors lie in IoT?
Understanding the operational costs can help you make smart decisions about the technology, processes and partners you need. This will help you ensure that your IoT initiatives run at the lowest cost, highest availability and provide the best customer experience.
These are the top operational costs you will need to consider:
- Connectivity: 19-43% of the costs are associated with connecting devices to the Internet; most often via wireless networks in a combination of local networks (RFID, Wi-Fi, ZigBee etc.) and the mobile network (private or public)
- Administrative operations: 15%-28% of the ongoing costs are associated with the day-to-day management and operation of IoT assets and business processes; structured life cycle management
- Support: 10%-28% of the costs are associated with identifying, troubleshooting and resolving field-reported issues with the IoT assets.
- Time to market: not only for the first MVP (minimum viable product), but also ongoing updates/upgrades. Impacting these costs are implications associates with the time to provision devices with services and testing devices with services before deployment.
These costs summed together make a strong case to leverage the benefits of a dedicated IoT platform solution using a SaaS or PaaS model.