The business model and costs associated with building an Internet of Things system are some of the most important considerations when planning what technology stack is used. 

This session examines the concepts that drive cost in IoT, as well as gives a framework for understanding what matters most in system development. This discussion focuses on the drivers of cost in development, production, and operations. The costs of connectivity options are also explored in depth.

 

Here is a copy of the slides used in the presentation:

The conclusions are worth reiterating:

Module costs are <5% of loaded cost.

Team often focus on the cost of radio modules, which they should, but over the life of a product, this particular part often only constitutes 5% or less of the total cost. 

Data usage is largest variable cost.

Technologies like LTE-M and NB-IOT have attractive pricing, but the cost per byte of data is many times higher than traditional cellular data. Understanding how much data a system is going to use is one of the most important parts of modeling a system's costs.

Some networks are not available.

SigFox, Ingenu, and LoRaWAN are intriguing innovations, but these networks only exist in a few cities. Unless you are developing a geographically constrained product, these networks likely won't work for your solution. 

One-to-many architectures can save most money.

Using technologies like Bluetooth (see www.AirFinder.com) to gather data from many sensors before using a cellular technology can save serious money. 

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Jennifer Halstead

Written by Jennifer Halstead

Jennifer Halstead, MBA, CPA brings more than 20 years financial industry experience to Link Labs. She began her career in finance within the pharmaceutical industry and has continued in both public accounting and private companies. She passed the CPA exam with the 3rd highest score in the state and completed her MBA with an accounting concentration (summa cum laude). Jennifer has worked with several software companies and has led multiple venture financing, merger and acquisitions deals. She has helped companies expand internationally and has managed the finance department of a startup to 33 consecutive quarters of growth prior to acquisition. After the acquisition, she served as the Controller of Dell Software Group’s Data Protection Division where she managed a portfolio of multiple hardware and software products to scale and achieve over triple-digit growth worldwide in 18 months. Jennifer brings a depth of finance experience to the Link Labs team.

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