It has been argued that the value of a network is based on Metcalfe's law. Robert Metcalfe in 1980 formulated the concept that the value of any network is proportional to the square of connected users of a system. In the case of IoT, users may mean sensors or edge devices. Generally speaking, Metcalfe's law is represented as:
Where:
- V = Value of the network
- N = Number of nodes within the network
A graphical model helps to understand the interpretation as well as the Crossover Point, where a positive return on investment (ROI) can be expected:
Metcalfe's Law. Value of a network ...
