Many businesses are discovering that the real cost of bringing an IoT project to life goes far beyond that initial quote for connectivity.
In the rush to connect everything from our city’s EV chargers to the vending machine down the hall, it’s easy to get fixated on the price tag. But what if the cheapest option today ends up costing you a fortune tomorrow?
Think of it like buying a car. The sticker price is just the beginning. You also have to account for fuel, insurance, repairs, and all the other expenses that come with keeping it on the road. It’s the same with IoT. You have the initial design, the hardware, the software, and the complex web of network providers you need to work with. Focusing only on the upfront cost is a flawed strategy.
David Langton, CMO at Eseye, said: “Too many promising IoT projects are undermined by a shortsighted focus on upfront costs, leaving them vulnerable to connectivity failures, spiralling operational fees, and an inability to scale. In a survey of senior IoT decisionmakers, Eseye found that 99.6% of IoT deployments fail to meet required connectivity levels.”
The great disconnect
There’s a huge gap between what businesses need from their IoT devices and what they’re actually getting.
79% of companies say they need their devices to be connected virtually 100% of the time for their projects to even make sense. Yet, the reality is that less than 0.4% of them ever see that level of reliability. It’s no wonder that more than two-thirds of organisations now believe that going with a low cost IoT connectivity provider just isn’t worth it in the long run.
When a device goes offline, it’s not just an inconvenience; it’s lost money and a hit to your reputation. If an EV charger can’t process a payment because its connection dropped, a driver is left stranded, and you’ve lost a customer. On the flipside, great connectivity can open doors to new markets you never thought you could reach.
The smartest companies think about connectivity before a single device is even built. Imagine creating one universal product that works anywhere in the world. No more juggling different models for different countries.
That’s exactly what the asset tracking firm T42 did. T42 designed their trackers to connect to almost any network imaginable, from 2G to satellite, so they function whether they’re in London or the middle of the ocean.
And what about battery life? For devices in remote places like water meters, which need to last for 15 years, changing a battery is a huge expense. But with power-saving technology, you can make that battery last up to a third longer and save costly truck rolls to the middle of nowhere. If you design it right the first time, you’ll save yourself headaches and expenses later.
IoT connectivity cost savings in action
A real-world global advertising company worked with Eseye to analyse its spending. They were on track to spend over £20 million on their digital signs over five years. By consolidating their hardware and improving the efficiency of their connectivity, they slashed that cost to £11.6 million.
“Enterprises are often tempted by the cheapest per-unit connectivity offer, but this rarely delivers the best long-term value,” explained Langton. “Our TCO framework is designed to give executives the clarity they need to make strategic decisions, turning IoT from a cost centre into a significant driver of profitability and new revenue opportunities.”
Understanding the total cost of ownership in the IoT isn’t just a business strategy; it’s the only way to build something that lasts, scales, and delivers on its promise.
(Photo by Benjamin Ranger)
See also: How next-gen connectivity is powering the future of IoT in Europe
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