A cost estimation approach for IoT projects

Abstract

Engineering Economics and IT management made a lot of progress towards understanding the concept of the Internet of things (IoT). Nevertheless the authors consider that some aspects of IoT project cost management still need to be further developed. At the initial stage of the research the authors were interested in the existing cost estimation approaches for IoT projects. This paper is devoted to estimation of project costs at a design stage. The general findings of the literature review revealed the problem of estimating total project cost. To establish paradigms for effective implementation and use of the Internet of things in software engineering it is necessary to consider the issues of its cost estimation. The research is focused on parametric estimate, a more accurate technique for estimating total costs and defining factors which influence the cost of IoT. The object of our inquiry are the aspects of IoT technology which influence costs. The main purpose of this paper is to help customers as they need to know the project cost before the completion. The analysis of the results allowed us to draw a conclusion that Program Evaluation and Review Technique offers the advantage of accurate estimating IoT project cost.