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August 11.2025
2 Minutes Read

Unlocking the True Cost of IoT Ownership: Avoid Hidden Expenses

Futuristic digital visualization of Total Cost of IoT Ownership data.

The Hidden Costs of IoT Connectivity: What Every Entrepreneur Should Know

The Internet of Things (IoT) is reshaping the landscape for businesses, creating opportunities for growth and efficiency. However, a new report from Eseye sheds light on a critical issue: the importance of understanding the Total Cost of Ownership (TCO) for IoT connectivity. Ignoring these hidden costs can jeopardize the financial viability of IoT initiatives.

The Fallacy of Cheap Connectivity

While it may be tempting for businesses to cut costs by opting for the cheapest connectivity options, this strategy can lead to detrimental long-term effects. According to the Eseye report, 68% of senior IoT decision-makers believe that inexpensive connectivity providers may not be sustainable in the long run. They warn that focusing solely on low upfront costs results in hidden expenses that quickly add up, undermining the entire business case for IoT projects.

Understanding Total Cost of Ownership (TCO)

To grasp the full economic implication of IoT investments, businesses must evaluate all costs associated with connectivity throughout the device's lifecycle. This encompasses expenses related to service downtime, maintenance, and vendor management. By failing to assess TCO, companies risk confronting unexpected challenges that could derail their initiatives.

Five Critical Steps for IoT Success

Eseye identifies five essential steps that businesses need to follow when deploying IoT solutions:

  1. Assess the Full TCO: Explore all potential costs beyond just the initial setup.
  2. Link Connectivity to Service Levels: Recognize that connectivity directly impacts customer satisfaction and revenue.
  3. Design for Lifespan: Plan for the entire device lifecycle and invest in sustainable solutions.
  4. Control Costs: Monitor operational and data roaming expenses to avoid surprises.
  5. Evaluate Reliability: Ensure that the chosen technology can meet uptime requirements essential for critical applications, such as health monitoring devices.

Embrace the Future of IoT

As entrepreneurs embark on their IoT journeys, it's crucial to adopt a holistic view of costs associated with connectivity. Recognizing the full TCO helps in making informed, strategic decisions that lead to profitability and success. Balancing cost considerations with reliability and performance strengthens the foundation for sustainable growth in this transformative industry.

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