Recent analysis has revealed that companies deploying Internet of Things (IoT) solutions may be overlooking significant hidden expenses, potentially threatening their financial and operational stability. Eseye, a recognized provider of IoT connectivity services, highlights that a narrow emphasis on upfront pricing can overshadow long-term impacts on performance and revenue. Considering the rapid expansion of connected devices in industries such as transportation, retail, and healthcare, understanding the true economic footprint of these investments is crucial. Businesses must evaluate every aspect of connectivity to avoid costly mistakes and ensure sustainable value creation.
Surveys from previous years have indicated that unreliable connectivity and unanticipated maintenance expenses often hinder the full potential of IoT projects. More recent industry reports largely focused on security and standardization challenges but gave less emphasis to total cost calculations. Eseye’s current approach includes quantifying all stages of deployment, from design to ongoing operations, unlike prior evaluations that were primarily concerned with initial acquisition and infrastructure deployment.
What Is the Real Cost Behind IoT Deployments?
Eseye’s report, “Beyond the Price Tag: The True Cost of IoT Connectivity,” finds that while 68 percent of decision makers are skeptical of low-cost connectivity providers, many projects are still underperforming. According to the report, up to 99.6 percent of IoT implementations do not achieve expected connectivity standards, pointing to a significant gap between perceived and actual value. The company identifies five essential steps to help organizations thoroughly assess total cost of ownership (TCO) instead of focusing narrowly on upfront connectivity costs.
How Can Businesses Prevent Hidden Fees?
Safeguarding profitability requires companies to examine the entire device lifecycle. Eseye recommends actions such as optimizing battery life, understanding the impact of outages on revenue, and adopting technologies like eSIM localization that minimize data roaming fees by leveraging local networks. For example, using a single global SKU for devices can substantially reduce operational, logistical, and compliance expenses. Each of these measures aims to identify and eliminate sources of hidden costs that might otherwise remain unnoticed.
Are There Measurable Benefits to Adopting a TCO Framework?
Eseye’s detailed case study demonstrates that businesses can realize significant cost reductions by implementing a comprehensive TCO analysis. A multinational advertising company, after reassessing its IoT strategy with Eseye, managed to achieve cost savings totaling £8.8 million over a five-year period through reduced hardware duplication, lower data expenditure, minimized service interruptions, and escaping vendor lock-ins. David Langton, Chief Marketing Officer at Eseye, stated,
“Enterprises are often tempted by the cheapest per-unit connectivity offer, but this rarely delivers the best long-term value. Our TCO framework is designed to give executives the clarity they need to make strategic decisions, turning IoT from a cost centre into a significant driver of profitability and new revenue opportunities.”
Eseye’s research also sheds light on emerging risks brought by ongoing technological shifts, such as 3G network retirements. Devices that are incompatible with current standards require manual upgrades or risk decommissioning, often incurring additional costs. Referring to recent findings, Langton explained,
“Too many promising IoT projects are undermined by a short-sighted focus on upfront costs, leaving them vulnerable to connectivity failures, spiralling operational fees, and an inability to scale.”
Focusing solely on the initial cost of IoT connectivity can create vulnerabilities in scalability, service reliability, and budgeting. The findings from Eseye’s latest whitepaper offer tangible examples showing that strategic planning and holistic cost assessments can help businesses avoid unexpected financial burdens and maximize their returns. Companies considering new IoT deployments, particularly those expanding across borders or industries demanding high uptime such as remote health monitoring, may find value in engaging with TCO frameworks to better project long-range expenses. As the IoT landscape continually adapts to technological advancements and market shifts, proactive cost management and flexible deployment strategies will remain vital for sustained success.
