How much does deploying IIoT at my business cost?
Industry experts say that deploying an Industrial Internet of Things (IIoT) will cost a minimum of $50,000 or roughly 10 percent of your information technology budget over three years. Obviously, the IIoT budget for your particular facility may vary from those numbers, depending on the size and scope of project you choose to take on, but the bottom line is that embarking on an IIoT initiative will require a significant investment.
A Minimum of $50,000
According to R-Style Lab, a software developer of smart solutions, the broader implementation of an Internet of Things (IoT) solution must include a proof of concept, hardware and software development or acquisition, an IoT infrastructure, and marketing efforts. At a minimum, an IoT deployment would run $50,000.
A more complex manufacturing deployment of IIoT could run significantly more than that. For example, a company that implements a multi-level solution that incorporates a web-based interface into a CMMS or other enterprise-wide system along with embedded software running on mobile devices may require 6,000 man hours and cost more than $200,000.
10 Percent of IT Budget Over Three Years
Inmarsat, a satellite communications company, ran a 2018 survey regarding IIoT costs and implementation. The results of this survey showed that most companies planned on spending about 10 percent of their entire IT budget in the following three years to deploy an IIoT solution. However, these were only the anticipated costs and others reported, after deploying IIoT, that the actual costs were higher than they planned.
Companies found that the following areas were most likely to see cost increases as a result of IIoT deployment:
- Costs to expand network connectivity
- Increased quality of service requirements outside single device
- Cyber security precautions and systems required
- Business liability insurance
- Integration with other manufacturing systems
- Compliance, audits and regulation costs
- Initial and ongoing training costs
The good news is that IIoT sensors, one of the easiest first-steps to take in facility maintenance IIoT, have dropped in price significantly over the last decade or so. According to Goldman Sachs, sensor prices have dropped by nearly 200 percent between 2004 and 2016 and are expected to hit an average cost of 30 cents per sensor by the end of the decade.