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How to Easily Estimate the Cost of Your IoT Product?

Posted September 9, 2019

The term Internet of Things (IoT) is almost two decades old now. But despite a relative maturity of IoT technology, developers working in this area still face multiple challenges related to creating and supporting products throughout their entire lifecycle.

What are the potential challenges for a new IoT project?

Experts in the IT industry note several key areas that every IoT-related business must consider. The most important of them are:

  • Forecasting and meeting the expectations of the potential customer or end-user;
  • Ensuring the highest possible level of security and data privacy of all IoT devices;
  • Designing flawless connectivity, integration and interoperability of their products;
  • Providing regular monitoring and data analysis (as needed), along with timely software and hardware updates.
Internet of Things - artistic concept. Image credit: TheDigitalArtist via Pixabay (Free Pixabay licence)

Internet of Things – artistic concept. Image credit: TheDigitalArtist via Pixabay (Free Pixabay licence)

New emerging technologies, standards and changing government regulations also lead to a fact that companies must allocate substantial resources for the purpose of IoT project planning.

For every deployment scenario, it is quite safe to assume that just the project planning phase (which should include specification of requirements and conditions) would require approximately 20% of the total project budget. And yet, up to 60% of all companies substantially underestimate the complexities related to successful implementation of IoT service or new product. The same report by Cisco states that as high as 75% of self-initiated IoT projects eventually turn out to be a failure.

Ways to estimate the IoT project cost

Considering the risk-associated figures provided above, it is not unexpected that with aim to remain cost-effective companies often seek for external project planning service providers, or use specialized planning tools.

For example, Indeema Software, a company that provides custom software solutions, recently launched a web calculator that helps you estimate the price of your IoT project. This calculator calculates development price for different industries: Smart Office/Retail, Smart Home, Health Care, Transport, Industrial IoT, Smart Agriculture, Smart City, Wearables.

Indeema’s team say their online calculator predicts not only the price of your project but also the time your team will spend on it. Many individual factors can be considered, too: developers can pinpoint key hardware and software components they’ll need for IoT development, data acquisition and application development scenarios, including types of separate modular components, or required number of sensors. This calculator tool is free to use and can be accessed here:

Certainly, alternative methodological approaches for carrying out the planning stage do exist. The most precise results are typically obtained through parametric estimations. However, this requires a significant expertise in building mathematical models.

If a less accurate prediction is enough, companies can use their own experience of working with similar projects. This technique works well only when IoT projects are very similar in their overall nature and scope. Therefore, the factor of project similarity must be considered very carefully to minimize the chance of failure.

Final word (the bottom line)

Every company or a person involved in the development of novel IoT products should not forget that the project cost estimation is of crucial importance. There are also substantial costs associated with this task. It is quite fortunate that IoT project cost estimation tools similar to that provided by Indeema Software become available and can be used as a savvy service for startups, businesses who plan to implement Internet of Things technologies, researchers and everyone who is interested in IoT.

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