When implementing an Internet of Things (IoT) application, a platform solution with the right partner, can save you 33% over self-build infrastructure.
IoT presents a tremendous opportunity for you to exploit the monitoring, management and control of the ‘things’ in your business remotely.
Forecasts from IDC indicate that billions of things will be connected worldwide by 2020, and companies are citing “internal productivity and efficiency” as the primary drivers for this momentum toward IoT investments.
However, there is a complex equation of factors to consider in a business plan, with unique challenges regarding Operations, Scale, Cost and Customer Service.
Where do the major business cost contributors lie in IoT?
Understanding the operational costs can help you make smart decisions about the technology, processes and partners you need.
This will help you ensure that your IoT initiatives run at the lowest cost, highest availability and provide the best customer experience.
These are the top operational costs you will need to consider:
- Connectivity: 19-43% of the costs are associated with connecting devices to the Internet; most often via wireless networks in a combination of local networks (RFID, Wi-Fi, ZigBee etc.) and the mobile network (private or public)
- Administrative operations: 15%-28% of the ongoing costs are associated with the day-to-day management and operation of IoT assets and business processes; structured life cycle management
- Support: 10%-28% of the costs are associated with identifying, troubleshooting and resolving field-reported issues with the IoT assets.
- Time to market: not only for the first MVP (minimum viable product), but also ongoing updates/upgrades. Impacting these costs are implications associates with the time to provision devices with services and testing devices with services before deployment.
These costs summed together make a strong case to leverage the benefits of a dedicated IoT platform solution using a SaaS or PaaS model.
A look at PaaS versus self-build infrastructure
A self-funded developed platform can cost upwards of R2-3 million taken over then first 12-18 months to reach a MVP.
Compare this to a value driven per device per month fee model, which could cost 10-15% per annum less for a 1,000 device network over the same period; and can easily be operational in just a few weeks.
“The opportunity costs lost in the self-build platform can never be caught up,” says Andrew Groves of Trinity, who works with customers to develop intelligent, connected IoT solutions.
“Similarly, starting business operations on either a savings or new revenue model in month one can easily realise your business case objectives while the platform capabilties keep evolving too.”
As such, a PaaS system can amount to 33% direct savings over self-build infrastructure, while allowing you to choose from multiple local and international MNO connectivity networks.
“Companies of all sizes, across industries, can use an IoT service platform to capitalise on IoT and get the most out of their ‘things’ by getting them connected,” Andrew added.
Key tips for choosing an IoT provider
- Look for real-time based monitoring and control.
- Past history and deep experience cannot be substituted when considering an IoT partner.
- Know your core competency, and leverage a platform for supporting elements.
- Having tools for full life-cycle management on all aspects will simplify operations massively.
For more information and to deploy your IoT solution today, visit the Trinity Telecoms website.
This article was published in partnership with Trinity Telecoms.