Cost Conundrum as Companies Quit IoT Shows Need for a New Business Model

I. Grant

Summary Bullets:

• Cost and higher priorities have led some firms to abandon their IoT plans

• IoT generates a small fraction of operators’ income

New research by GlobalData shows that the companies that give up on their IoT projects do so because they are too expensive to implement (41%), and because their priorities shift (23%). Another 21% found they are too costly to maintain.

GlobalData asked more than 1,000 users worldwide, mostly industrial firms, about their IoT investment intentions. Replies show that getting budget is less of an issue this year than last, suggesting firms are more willing to try out the technology. However, this also led to more projects being abandoned later in the project lifecycle. While most firms kill their IoT projects in the investigation phase, all firms in GlobalData’s 2016 survey pulled the plug at the latest during the pilot stage. This year, 6% abandoned their projects in each of the deployment and post-deployment phases, citing implementation and maintenance costs reasons. Continue reading “Cost Conundrum as Companies Quit IoT Shows Need for a New Business Model”