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The Hidden Costs of IoT Deployments

Costs of IoT

The deployment of Internet of Things (IoT) solutions promises significant benefits, from improved operational efficiency to new revenue streams. However, beneath the surface lie numerous hidden costs that can significantly impact the total cost of ownership (TCO). This article focuses on the often-overlooked expenses related to deploying and updating the operating system (OS) and software, configuring and securing the devices, resources needed to build the management tools, extended deployment periods (maybe beyond Linux or BSP (board support package) support, and infrastructure costs. Let’s examine the hidden costs and also see how the industry-leading device management platform qbee.io can help to minimize the costs and challenges. It offers the market’s most flexible and cost-effective deployment system with a device price of less than $3.6 per year. This without any volume discount.

Deploying and Updating the OS and Software

Initial Deployment Costs

The initial deployment of the OS and software across IoT devices is a complex and costly process. Each device needs to be set up with the appropriate firmware, drivers, and application software. According to a report by Cisco, the average cost to deploy the software on an IoT device can range from $100 to $500 per device, depending on the complexity and scale.

With qbee.io

With qbee.io device management, provisioning large fleets of devices becomes seamless and secure. Utilizing disposable bootstrap keys, each device generates its own secure public-private key pair. The system can automatically install the entire software stack, including drivers and applications, from a golden image, Yocto build, repository, or the qbee file manager. This flexibility allows for last-minute changes during deployment. Provisioning can be integrated into the hardware production process or added later as needed. Additionally, building the base OS and preparing for A/B OTA firmware updates is straightforward.

Ongoing Maintenance

Regular updates are critical to ensure security and functionality. A McKinsey study highlights that managing updates can add an additional 20-30% to the initial deployment costs annually. For example, if the initial deployment cost is $200 per device, expect an additional $40-$60 per device each year for updates and maintenance.

With qbee.io

Regular updates can be managed easily and cost-effectively with qbee.io. The platform supports simple OTA A/B firmware updates and allows for updating individual packages, binaries, running scripts, and even utilizing key-value templating in configuration files. These updates can be executed through an intuitive UI or a powerful API, providing flexibility and convenience for efficient device management. CI/CD is also supported.

Configuring and Securing the Devices

Configuration Costs

Properly configuring IoT devices to ensure they work seamlessly within the existing network infrastructure can be labor-intensive, especially if this is not automated. On average, configuration costs can amount to $50-$150 per device, considering the need for specialized personnel and potential integration with other systems.

With qbee.io

qbee’s configuration management engine simplifies configuration tasks and enables individualization through key-value templating. This feature allows for seamless adaptation to various environments, such as assigning unique IP addresses to devices. An automated deployment of initial or updated configuration allows a single person to manage really large fleets.

Security Costs

Securing IoT devices involves multiple layers of protection, including implementing Trusted Platform Modules (TPMs) for hardware-based security, using digital certificates to authenticate devices and encrypt communications, maintaining an SSH key rotation policy for secure remote access, and managing user permissions and firewalls. These measures, though essential, can significantly add to the overall cost of an IoT deployment. Proper budgeting for these security aspects is crucial to ensure the safety and integrity of the IoT infrastructure.

With qbee.io

Whether you need to utilize your device’s TPM, manage SSH keys or certificates, or harden your Linux configuration, our tool provides comprehensive support for all these tasks. Additionally, we analyze your Debian packages for CVE vulnerabilities, ensuring robust security management and quick response times to cyberthreats.

Resources Needed to Build the Tools

Development Costs

Building the necessary tools for managing, monitoring, and maintaining IoT devices requires significant investment in software development. Gartner estimates that developing these tools can cost anywhere from $500,000 to $1 million, depending on the complexity and functionality required.

With qbee.io

Our solution provides a complete PaaS for device management, eliminating development costs and covering operational expenses. With a pay-as-you-grow model, you avoid initial engineering costs and minimize operational costs over the devices’ lifetime. We continually innovate, secure, and expand the platform, allowing your resources to focus on your domain expertise rather than infrastructure management.

Training Costs

Training staff to effectively use and manage these tools adds another layer of expense. Training programs can cost an organization $1,000 to $3,000 per employee. For a team of 10 employees, this can quickly add up to $10,000 to $30,000.

With qbee.io

qbee is user-friendly, supported by comprehensive documentation, tutorials and excellent support. While we also offer training, most customers find it unnecessary. For any questions, problems, or feature requests, our friendly support team is ready to assist you in achieving your goals. 

Very Long Deployment Periods

Extended Deployment Timeframes

IoT deployments often face delays due to the need for extensive testing, configuration, and troubleshooting. A typical large-scale deployment can take 6 to 18 months to complete. Delays can incur additional labor costs, often running into tens or hundreds of thousands of dollars. For instance, if a deployment requires an additional six months at a cost of $50,000 per month, this results in an added $300,000.

With qbee.io

With qbee, you can seamlessly transition from a simple proof of concept with a single device to field testing and mass deployment in no time. Our automated device management ensures your entire device base is always up-to-date with the latest software and Linux configurations. Changes can be implemented through staged rollouts, making deployments quick and straightforward, with the flexibility to make adjustments at any stage of the deployment process.

Long Total Lifetime

Another aspect is the long total lifetime of the project. With installations running for more than 10 years the standard support period for Linux LTS versions can be exceeded or the hardware vendor providing the BSP can stop operating or canceling support on the BSP.

With qbee.io

If support for your BSP or Linux repository ends, you can leverage the internal qbee file manager to create overlays for packages or binaries. This allows you to recompile and distribute critical libraries with necessary patches and deploy them, ensuring your system remains updated and secure even without official support.

Infrastructure Costs to Operate Such a Solution

Infrastructure Costs

Managing fleets of IoT devices and providing secure remote access necessitates a robust centralized system. This system must offer excellent connectivity, low latency, and include load balancers, databases, diverse workloads for backend and front-end functions, auto-scaling capabilities, log monitoring, performance monitoring, and more. All this has to be operated to the highest security standards. These requirements can rapidly escalate costs, potentially reaching thousands of dollars. Moreover, it demands highly skilled internal resources, typically those with a DevOps background, who are both expensive and scarce, to ensure secure and reliable operation.

With qbee.io

The pay-as-you-grow model removes all infrastructure costs, allowing you to avoid significant upfront expenses for load-balancers, firewalls, managed databases and similar. Additionally, it frees up your valuable DevOps resources from managing infrastructure, enabling them to focus on more critical tasks within your core domain.

Conclusion

The hidden costs of IoT deployments can substantially impact the overall budget and ROI of a project. Understanding and planning for these expenses is crucial for organizations to ensure the financial viability and success of their IoT initiatives. Deploying and updating the OS and software, configuring and securing devices, developing necessary tools, managing long deployment periods, and covering infrastructure costs are all significant factors that need to be meticulously accounted for in any IoT deployment strategy.

By using a solution such as the industry leading device management from qbee in a pay-as-you-grow model you gain huge financial savings both in terms of CAPEX and OPEX while profiting from its vast amount of features, ease of use and very high security standards.

Interested to know more?