Increased usage of an IoT service would decrease your margin!
In what scenario the above statement could be true?
The only possible reason that comes to my mind is poor service design.
Areas of the increased costs due to the poor service design include:
- extra staff required to manually onboard and manage IoT devices
- manually over-provisioned cloud infrastructure to meet increased demand
- extra developers hired for fixing backend bottlenecks (when increased infrastructure does not fix the poor design issues)
- the churn of customers due to poor service quality
All of the above leads to increased expenses and decreased income.
Is there a way to avoid that scenario?
In my opinion, the solution is a properly designed IoT infrastructure.
What do I mean by “proper design”?
- backend infrastructure automatically scales up/down depending on the usage
- device onboarding is fully automated (no manual actions are required to connect a new device)
- device management and monitoring are executed through automated actions (manual intervention is required in the edge cases)
That is how I suggest designing IoT environments. But maybe I am missing something? Why do so many people claim that increased usage of an IoT service would decrease your margin?
