Cost of IoT

Although the world of the Internet of Things is developing at a rapid pace, many users still think and are convinced that developing such applications and debugging the entire system costs a lot of money. This is not surprising, because the total Cost of IoT in the world is in the trillions of dollars, and these numbers are terrifying for business owners. However, in practice, the development of such an intelligent product is not so difficult, and the following explains how much IoT costs and what this price consists of, which will help business owners quickly navigate the world of affordable intelligent technologies.

What are the levels of IoT implementation?

When providing services for the development and implementation of the Internet of Things in a business management system, the developer consistently performs the following levels:

·         The main stage is the analysis of the customer’s field of activity, equipping all physical objects with sensors that need to be automated and connected to remote access for control, and an automatic mode, following a certain algorithm.

·         The second level is the establishment of communication between sensors and actuators via a wireless connection, which provides instant control and notification to the operator about any emergency entered into the device software module. At this stage, the price for maintaining the wireless network is also recovered, which will depend on the type of connection, as well as the data transfer rate.

·         The next stage of system development will be the introduction of program codes, operating environment, and other settings that meet the requirements of the customer’s technical specifications into cloud services. The remote environment is virtually unlimited in terms of information storage capacity, and security level, and it costs much less than building a complete internet site from the start.

·         After installing sensors, and actuators, and providing wireless communication and other important components for the uninterrupted communication of physical objects with a programmable module, the stage of software development and implementation begins. At this stage of work, programmers, designers, managers, and other specialists think through a convenient user interface, set up a graphical environment, download algorithms for PC interaction with a person, and develop mobile applications.

·         At the final stage, professional programmers develop and implement security systems and personal protection of user account settings, complete blocking of the customs system from cyber-attacks.

After the development of all stages of IoT, professionals carry out the commissioning of equipment, and distribute the software to the required number of stationary or mobile devices, after which they instruct future users responsible for the normal operation of the new system.

Factors Affecting IoT Development Cost

Considering that the development of technology based on the Internet of Things is not only about the production of intellectual products, but the following simple and indirect factors can also affect the cost of this work:

·         The cost of equipment, hardware requirements for sensors that are planned to be installed on physical objects, as well as the number of such connection points.

·         The level of security of the platform being developed depends on the number of users, the need for virtual financial transactions, and the storage of funds on personal user accounts. If it is necessary to introduce encrypted protocols, the amount of software development increases due to the need for its decentralization, and the formation of a huge number of random program codes to eliminate cyber-attacks.

·         The second factor is the compatibility of the everyday smart product with various systems that are installed around the world. This includes the standardization and unification of communication protocols, and the type of communication between sensors and actuators – Wi-Fi, LPWAN, or Bluetooth.

·         The final factor is the possibility of scaling the system, namely, increasing the number of sensors, actuators, and software copies, or developing their algorithms as the customer’s business grows. In such cases, the developer is obliged to leave free clusters and other cells for storing information, which can later be filled, without the need for global intervention in the entire system.

In practice, many companies involved in the development and implementation of IoT technology estimate their services from $30,000 for simple software and a minimum set of program codes, or $50,000 if a more complex system is expected to be developed.

How to avoid unnecessary expenses when developing an IoT platform?

As a rule, far from each of the standard or additional options introduced when developing an IoT-based platform may be required by the user to manage his business processes. In this regard, many customers initially overpay large amounts, and the following describes in detail how to avoid this:

·         If the user initially provides for system scalability, his permanent expenses are justified over time, pay off and make a profit, since adding new data and clusters significantly reduce the risk of having to reinstall the entire system.

·         Planning and design before starting development – the user must understand exactly what tasks the future technology is planned to solve, which will allow changing the scope of applications or the entire platform in time without resorting to buying new sensors, actuators, and software development.

·         Mandatory use of the Discovery development stage, which includes analyzing the potential customer’s business, setting the main tasks, planning the future system, accurately calculating the estimate before agreeing, as well as brainstorming with the client to accurately understand all the nuances of the future platform. The cost of such a service, as a rule, can cost from 5 to 15 thousand dollars, but a thorough analysis of all stages of development and implementation can save much more money, which will ensure a quick payback in business.

Above were the factors affecting the cost of developing IoT applications, as well as approximate fixed prices, which are obtained from the results of statistics on the provision of these services for the development of an intellectual product for other customers.

It is practically impossible to determine the exact cost of the software and the full range of works at once. An accurate price calculation requires brainstorming, a clear statement of tasks, the participation of the customer in the primary service of all subsequent operations for the development and implementation of the product, as well as the preparation of a detailed cost estimate, followed by coordination of the calculated amount with the client.