Gartner Research

Market Insight: Three IoT Financial Failure Points That Solution Providers Must Address

Published: 29 July 2016

ID: G00307481

Analyst(s): Nathan Nuttall


Lessons from IoT projects implemented to date are starting to paint a picture of where IoT initiatives often fail to live up to financial return expectations. IoT solution providers must take measures to avoid these three common IoT failure points.

Table Of Contents


  • No. 1 — IoT Use Cases That Fail to Create Compelling Business Value
    • Users Fail to Engage as Planned With an Endpoint or IoT "Thing"
    • Bad IoT Product Ideas
    • Poor Business Model Assumptions
  • No. 2 — Insufficient Operating Cost and Maintenance Expense Assumptions in IoT Plan
    • Operating Costs Higher Than Expected
    • Failure to Include Reasonable Maintenance Expenses
  • No. 3 — Long Financial Payback Time Frames Threaten Overall Project Financial Success
    • IoT Projects Frequently Run Into Unanticipated Implementation Challenges
    • Briskly Evolving IoT Technologies and Rapidly Falling IT Costs

Background and Context

The Impact


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