IoT deployments are often complex with many layers. This means there is a lot to take into account when planning a project, from ideation to prototype, deployment and ongoing device management. Yet oftentimes, we see companies scope out projects based on the initial infrastructure costs without a clear picture of ongoing costs.

The known upfront investment in IoT

It's easy to focus on the known costs when conducting a build vs. buy assessment or scoping out really any project. These are typically the costs we first think of when we are evaluating a project — the costs to start up, get devices out into the world and get a project online. For an IoT project, let’s walk through what this might look like.

Take for example a scooter in the shared economy. The costs that immediately come to mind include:

• Physical scooter: How many do you need? What is the cost of each scooter? What does it cost to ship it from the warehouse to where it will be used? What is the average lifetime value of that scooter?
• Connectivity: How will it connect? What’s the cost of that connection? How much data will it use? What are the rates?
• Personnel: Who will manage the project? What is their salary?
• Time to market: How long will it take to manufacture and ship? What is the competitive impact of the time it takes to deploy?

It’s easy to see how quickly these can add up!

Hidden Costs of IoT

With tighter budgets, many companies are taking into account their spend and ROI of all projects – including IoT. The upfront investment is the easy one to track, but there are many other costs associated with an IoT deployment, specifically as it relates to operating expenses.

Help your team stay on top of all deployment expenses — including hidden ones.