IoT TCO: Minimizing Total Cost of Ownership for Cellular Devices

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Connectivity is the invisible engine that powers every IoT initiative. Yet too often, organizations fixate on the sticker price without realizing how the wrong choice can inflate expenses across the entire operational lifespan.

When you look beyond the price tag, you discover that a cheap SIM card often comes at a steep price. That’s why taking a strategic view of cost of ownership for cellular is essential. It’s the only way to build a sustainable business case.

Understanding IoT and cellular connectivity

What is IoT? Applications and IoT devices at scale

The Internet of Things (IoT) is a vast network of connected devices working in real-time. From smart meters and medical sensors to industrial machinery, these solutions collect, share, and act on critical data.

They often operate autonomously at scale, which means reliable connections aren’t optional—they’re foundational.

Importance of cellular connectivity in IoT

Cellular connectivity underpins global IoT operations. Unlike Wi-Fi, cellular networks offer reach and resilience wherever devices are deployed. Whether your systems are in urban centers or remote locations, robust networks deliver the uptime you and your customers expect.

More enterprises are choosing SIM card solutions that use eSIM orchestration technology, and advanced connectivity management platforms to reduce complexity and improve performance.

Total Cost of Ownership (TCO) in IoT projects

Defining TCO and evaluating long-term costs

TCO in IoT doesn’t stop at the initial bill. It covers every cost tied to device connectivity—from design and deployment to ongoing operation and support.

Selecting the lowest-cost option can look appealing, but when you account for outages, maintenance visits, and upgrades to support new network technologies, those early savings quickly disappear.

Evaluating TCO properly safeguards your profitability and helps you plan for future demands.

Key components of TCO in cellular IoT

A comprehensive approach should consider:

• Device design costs, including whether you need multiple configurations or a single global SKU
• Data charges and roaming fees across borders
• Maintenance and support requirements
• Power consumption and battery longevity
• Network operator integration and device management
• Risks of future network changes that could disrupt operations

Consequences of poor connectivity in IoT devices

Impact on performance and reliability

When devices can’t maintain consistent connections, the impact is immediate. A payment terminal that can’t process transactions or a sensor that stops reporting data undermines trust and disrupts business.

Even short outages can damage your reputation. For mission-critical applications where reliability is non-negotiable, inconsistent performance simply isn’t an option.

Risk of project failures

Connectivity gaps are a leading reason projects underperform. Devices that constantly drop off the network often require costly manual intervention, replacement, or re-engineering.

Over time, these setbacks inflate costs and reduce the return on investment you counted on.

Financial impact of poor connectivity

Lost revenue is only the beginning. Every poor experience erodes customer loyalty and drives up expenses:

• Missed transactions
• Additional support calls
• Unplanned field service
• Brand damage that weakens long-term growth

As you scale, even minor issues can multiply into major financial risks.

Managing real-world costs in IoT deployments

Strategies to reduce TCO

Here’s the upside: it’s possible to design for cost efficiency from the outset. Leading organizations rely on proven strategies:

1. Building a single global SKU to simplify logistics and reduce rework
2. Using eSIM localization to minimize roaming fees and improve network flexibility
3. Selecting SIM card solutions and CMPs that can adapt as networks evolve
4. Optimizing power consumption to reduce battery replacements

By investing in better solutions early, you reduce long-term costs and protect margins

Choose a platform that grows with you

Eseye’s Infinity IoT Platform™ provides complete oversight and control of your entire IoT estate from a single, intuitive interface. With Infinity, you can:

• Optimize connectivity for each device individually
• Perform over-the-air updates to roll out new features or improve security
• Manage firmware and configurations without manual intervention
• Remotely monitor performance across regions in real time

This unified approach makes it easier to scale, reduces operational burden, and helps you deliver consistently high-quality service to your customers. Without these capabilities, operational costs, technical support and complexity can quickly escalate.

Optimizing time to market for IoT solutions

Speed matters. The longer it takes to deploy and stabilize, the longer it takes to see results. Working with experienced partners accelerates launch timelines and helps you avoid avoidable setbacks.

Eseye’s Connected-by-Design approach: the smarter way to lower costs 

IoT optimisation parameter sensitivities, by top 25 IoT use cases. [Source: Transforma Insights, 2023]

At Eseye, we believe the most successful IoT deployments don’t happen by accident. They’re Connected-by-Design.

This approach goes beyond simply bolting connectivity onto an IoT device at the end of development. Instead, connectivity is engineered into the product from the very start—creating a stronger foundation that supports scale, resilience, and lower total cost of ownership.

Research from Transforma Insights shows that nearly half of all enterprises struggle because connectivity wasn’t planned early enough in the process. The result? Project delays, spiralling costs, and subpar performance.

Eseye’s Connected-by-Design methodology turns this challenge into an opportunity. We help you make informed design choices before devices ever reach production, so you can:

• Build in multi-network resilience and future-proofing
• Simplify certification and logistics with a single global SKU
• Reduce the risks and costs of retrofitting connectivity later
• Optimize performance for every region and use case

Device design and customer value

Early design decisions have an outsized impact on profitability. Selecting components and connectivity solutions that support multiple generations of networks avoids costly redesigns as technologies evolve.

For example, consider smart meters with a 10–15 year service life. Without an embedded, future-proof approach, any network change could force widespread replacements and expensive field visits.

Proactive vs reactive connectivity management

Organizations that rely on reactive strategies often end up firefighting outages and field failures. Eseye’s Connected-by-Design approach shifts your focus to proactive planning and real-time optimization, so you can avoid disruptions and maintain consistent service.

The compounding costs of inconsistent connections

Even minor connection issues quickly become major operational challenges when scaled. Repeated support calls, lost data, and frustrated customers drive up expenses over time and chip away at profitability.

How monitoring and optimization save money

Continuous monitoring is a cornerstone of Connected-by-Design. Our intelligent platform delivers insights that help you to fine-tune data usage and battery consumption, and seamlessly switch to the best available network anywhere in the world.

The result is lower long-term costs, higher service reliability, and the confidence that your deployment can scale without compromise.

Rethink your IoT strategy for the long run

Why the cheapest option rarely delivers value

Low-cost providers often look appealing. But when you consider performance, service quality, and hidden expenses, the numbers rarely stack up. In fact, most enterprises agree that cheap connectivity isn’t a sustainable choice.

How TCO-focused planning drives profitability

Taking a strategic view of TCO empowers you to:

• Lower maintenance and support costs
• Deliver stronger, more reliable performance
• Adapt as networks and requirements evolve
• Accelerate time to market and scale confidently

Ready to transform your IoT deployment?

You don’t have to compromise. Eseye helps you design connectivity solutions that deliver predictable, profitable results—now and in the future.

In this article

• Understanding IoT and cellular connectivity
• Total Cost of Ownership (TCO) in IoT projects
• Consequences of poor connectivity in IoT devices
• Managing real-world costs in IoT deployments
• Eseye’s Connected-by-Design approach: the smarter way to lower costs
• Rethink your IoT strategy for the long run