Analytics for the Internet of Things (IoT)

The option to quit

With cloud computing and IoT analytics, almost all costs are variable. Some fixed costs exist due to environment maintenance (labor). These should be included in the business case, but it is minimal versus the variable costs. If a decision is made to stop a project in this scenario, all costs can be immediately eliminated. We will call this an option to quit.

An option to quit has value and should be included when making a business case for IoT analytics. At the point an IoT analytics project is determined not to be viable, all costs can be terminated immediately. The following diagram illustrates this situation:

Cloud IoT ...