For residential clients, Bloomfield recommends sticking to high-end homes. While some competitors might service homes for $10 a device per month, “they lose money with one service call." In contrast, he says, "Owners of 5,000 to 6,000 square foot homes are more likely to pay for everything to be done for them. They want to know the TV will work."
Pricing your services correctly is key to profitability, Knocke says. "If you price it appropriately and support it the right way, IoT monitoring can be extremely profitable. At $5 per month you'll have to sell thousands to make it work, but if you look at your costs and service time you put into it, it's similar to your MSP model."
He adds that once you have an IoT gateway in place, you can do all sorts of IoT projects. "Your car, your forklift, and your HVAC systems are now IoT management ready."
Another angle, he says, is monitoring IoT sensors for water or fire damage, and other business losses, which can lower insurance costs for your customers.
Perhaps the more pertinent question now is whether an MSP can afford to ignore IoT management projects. "‘The sky is falling’ message is always around, and IT-only MSPs will be fine for five to 10 years," says Knocke, who adds that it is "better to be forward thinking. Businesses prefer to buy from full-service management providers."