It Costs More Than Expected
IoT projects have so many outliers and there are so many new technologies being brought to bear, costs often exceed initial estimates significantly. We started working on a project with a customer to integrate sensors and connectivity with the core device. We reasonably expected there would be some trial and error, but the device itself was so unstable that it took almost nine months longer to get the new sensors and connectivity working properly.
During that time, we chased a lot of ghosts in the design of the IoT circuit board that resulted in nearly 10 different design iterations. That extra time and the extra resources add up. In IoT, when you make mistakes (and you will make mistakes) the impact can be more significant than in traditional IT projects. Hardware decisions can have huge impacts on your budget.
If you are thinking about connecting a million devices and you add a part that costs $1.00, you just added over a million dollars to your budget. On top of that, IoT data connectivity can add up. AT&T, Verizon, and other carriers want to get paid for sending your data up to the Cloud. Then there is the cost of storing data in the Cloud – its seems pretty cheap at first, but when you hit 25 petabytes of data you might think otherwise. Add in the costs of the extra support – IoT is harder to install, requires commissioning and provisioning – that might cost more. Finally, supporting customers with IoT might mean more support calls and more trips on-site. If you cannot contain costs, you might not be able to profit from your IoT initiatives.