Cost Analysis for IoT Deployment for Your Project

The cost of IoT may seem like an overwhelming factor, but it is actually not. The cost of IoT is manageable as long as you are not making a custom device yourself. Here is more to it!

The buzz around IoT is really high at the moment. One thing that every businessman knows is that IoT has the power to revolutionize their business. However, there are many that are still tangled in the strings of how and how much. As IoT is a modern-day technology that has nothing attached to traditional ones, business owners face a lot of difficulty in adapting to it.

IoT can be applied in various industry sectors like manufacturing, automotive, telecom, etc. However, one factor that keeps businesses from upgrading is the cost of IoT. As there is the involvement of smart devices and software in it, the uncertainty of cost keeps businesses perplexed. And the constant technological advancement is another cherry on the cake. But not anymore!

If you are planning to deploy IoT, this article is for you. We have taken a dig at the cost aspect of IoT deployment for your project. By the bottom of this article, you will know if you can afford to deploy IoT or not.

What does IoT deployment include?

The need for IoT deployment is only seen by those who have large-scale businesses. As machines can be countless and at different locations, keeping a check on all of them can be tricky. Hence, IoT is necessary!

Let’s take a look at the various components of IoT deployment and why they need your attention.

1. Devices

Devices are a key part of an IoT system. There can be various types of devices, primarily sensors, such as proximity sensors, temperature sensors, image sensors, humidity sensors, etc. Along with these, there will be other legacy devices too.

Hence, you need to ensure that the devices you employ in the architecture are not just compatible with one technology or platform. They need to be compatible with different technologies to ensure interoperability and avoid any incompatibility issues.

2. Connectivity

Connectivity is the second crucial part. IoT is all about devices connected to the network. Though WiFi is primarily used, it cannot be used everywhere. For example, if a telecom provider has a BSC tower in a remote location where WiFi isn’t available, devices supporting other protocols like LWM2M, LoRa, and LoRaWAN can be installed.

These devices can communicate over the cellular network at a lower range and with better battery life.

3. Device Management

As technology changes swiftly, it becomes necessary for you to keep device management in mind while deployment. Make sure that the devices you choose to install at home and remote locations support regulated open standards and protocols made by the industry.

These protocols and standards ease the process of performing basic management operations like re-configuration, security updates, and maintenance.

4. Data Processing

Data processing is the part where data is analyzed to get insights. As it is also one of the chief elements of the IoT infrastructure, the data processing should be done at a centralized platform. It helps the administrator get a broad overview of the entire system.

5. Management Platform

This platform refers to a dashboard platform that incorporates the data from all the devices across your business area and manages them in one place. Make sure that during deployment, this platform has an interactive interface and is ready to accommodate add-on solutions.

It should also be future-ready.

What are the Various Steps to IoT Deployment?

When it comes to the actual IoT deployment, there are various steps and strategies that one has to follow. These are the crucial steps, and you need to ensure that you follow them closely!

1. Consultation

The key step is to analyze the present state of your business and see what part of it is ready to shift to IoT. Make sure you keep your entire team in the loop to ensure that each person is on the same page and working to achieve a common goal. You can rope in both your internal and external teams to establish a roadmap to deployment.

To get a better and more valuable view of the overall project, make sure you count in the total cost and ROI. Also, keep the time required to get the ROI back in mind. Get in touch with a person who actually knows things and test out an initial pilot program to build the trust of your management in your idea.

At a deeper level, the consultation phase should also include the technology (sensors) you will be using, the connectivity (network), device management, and the connectivity partner.

2. Development

The second stage of IoT deployment is development. This is where whatever is planned in the consulting phase comes into action. The development phase takes a dig at creating everything that will make the user experience better and make a faster route to market.

Here are some of the chief things that happen in the development phase!

• Building the cloud platform and setting the analytics framework.
• The essential features required by the business are configured with respect to analytics, machine learning, cognitive services, etc.
• Crafting an awesome user interface to provide an immersive user experience on web platforms and applications.
• Special attention needs to be paid to ensure that the development is made while keeping future needs and changes in mind. For example, if there are any changes required in the network, device management, or features of the app,

Before the IoT deployment, pre-deployment testing is necessary. It is crucial to do it both internally and externally for the company to ensure that everything works as intended.

3. Deployment

This is the most crucial stage of the IoT deployment process. To ensure that whatever you plan in the consulting phase is implemented well, you have an experienced person on the internal or external team. Don’t just hire anyone, as anything can go wrong.

Here are some key elements of the deployment phase!

• Security and data privacy plans need to be implemented in the deployment phase.
• Backup hardware is made ready.
• Customer support for technical problems, WiFi, cellular networks, apps, gateways, and cloud platforms come live.
• Dedicated devices are installed and configured to the apps and software developed in the development phase.

This is how the overall IoT deployment process works!

How Much Does IoT Implementation and Deployment Cost?

Let’s deal with the chief question of the article! How much do IoT implementation and deployment cost?

The implementation and deployment of IoT costs can be divided into various parts, such as hardware cost, software cost, network cost, app cost, etc. We will take a comprehensive look at all of them below!

A. Hardware Cost and Process

This is the key point here. Now, here you have two choices, either you can make the device or machine yourself, or you can use the legacy device and make it functional with a sensor. If you are opting to make a device from scratch, you have to spend money on analysis, design, prototyping, testing, and mass production.

The overall price depends on the types of IoT hardware you are developing, so there is no fixed cost figure. Modern-day IoT systems built from scratch can go over 100,000 to millions of dollars. You may also have to spend on device certifications that vary from country to country. It can cost you close to $10,000 per device.

On the other hand, if you are opting for the second option, to use sensors on top of other devices to access data, it may be a cost-effective option for you. Over the years, sensor costs have dropped significantly. For your reference, you can get a sensor, no matter which one it is, at an average cost of $0.4. These sensors can be moisture sensors, temperature sensors, RFID tags, etc.

B. Embedded Software Cost

Sensors are of no use if there is no software to comprehend the data they produce. The software may range from a simple pre-programmed one to a custom-built version. No matter what you choose, you can expect an expense of $10,000 to $30,000 for IoT devices.

C. Network Cost

The network cost involves the cost of using short-range networks (WiFi, Bluetooth), long-range networks (LPWAN), and the cellular network. If you are using the cellular network to communicate between interconnected devices, it can cost you close to $0.4 per MB. You can look for better data plans for your business.

D. Data Storage and Processing Cost

This is the part where IoT data analysis takes place, and cloud solutions are the best here. There are various companies that provide PaaS solutions, such as Google, Amazon, Microsoft, etc. As they provide you with an IoT hub unit, cloud storage, and dashboards for visualization, the prices may be high.

A rough estimate for data storage and processing can be nearly $250,000.

E. Hidden Costs

Hidden costs constitute the infrastructure cost that cannot be fixed to a number as it varies based on the type of business. For example, in a telecom system where field engineers are required to test remote sensors and replace them if required, the hidden cost covers the fee paid to the technicians and the cost required to contact and get the components from the manufacturers.

Other than these, there is IoT app development cost, which can vary based on the type of business. For example, if you develop a heart rate monitoring device or sensor coupled with an app, the app may cost you $10,000 to $15,000.

Based on the level of complexity and features, an IoT app can cost you anywhere between $30,000 to $50,000.

What are the Various IoT Cost Objections?

It is obvious that, after seeing the cost, many of you might object to deploying IoT. However, if you want to seek some motivation for the same, here are some cost objections and the way to overcome them.

1. High initial cost with only one goal: The initial cost of an IoT project may seem big as the output is one. But, if you break it into different sizable projects, you will see the worth.
2. Improper understanding of IoT: If you think IoT is only going to automate the system, you need to check out the firms that have incorporated IoT and witnessed operational improvements and fewer unnecessary tasks.
3. Let the prices come down: This can be a great objection to slowing and revoking IoT deployment. Though the prices of IoT devices are pretty low unless you make them yourself, the output of leveraging IoT for your business would be sky-high.

Conclusion

So, in an abstract, we can say that the cost of IoT deployment is balanced. It can be bearable for some, but not for everyone. But the end results can be massive. Hence, if it does not seem bearable today, just wait for some time and aim to make IoT part of your business, as it can be really beneficial.