The Internet of Things (IoT) has continued to expand at a phenomenal rate around the globe. Combined with the effects of the Covid-19 pandemic, an increasing number of companies are also eyeing up further digitization across their platforms. 

What this means is that we are witnessing a higher demand for IoT-related products as well as services. Chief among these are IoT hosting platforms that can achieve your company’s ultimate goals of providing convenience and speed. 

According to IoT analytics, the IoT platforms market is very much a hot commodity right now. In fact, the IoT hosting market saw growth in the last five years that was actually $800 million larger than originally predicted. And this maturing market is still rapidly expanding.  

However, with many IoT platforms linked to the same cloud vendor and the market becoming increasingly saturated, businesses may struggle to identify the best fit for their needs.

What you should really consider is the IoT pricing model.  Normally, enterprises agree to pay a monthly or yearly subscription fee. Or, they pay on a device-by-device basis.

When it comes to IoT solutions for enterprises, it is important to know the differences between these payment models to understand which works best for you. In this blog, we’ll look at the differences and consider why it may be worth rethinking IoT device management pricing via subscription.

The Problem with the Subscription Pricing IoT Platform

Back when IoT was in its infancy, the market thought that consumers would happily sign up for monthly subscription services and that the overhead costs for IoT services would be passed on to consumers. And, as a result, the effectiveness of IoT connectivity services wasn’t a big deal.


Because in the end, it would all be paid by the end-user. 

However, the problem is that this model hasn’t been effectively implemented. On top of that, not many end-users want to pay a subscription for IoT – even if it’s a small amount. 

This is what makes Nabto a better alternative.

We use P2P as an underlying communication pattern. This has been proven to work by multiple connectivity infrastructure companies, including Skype and Teamviewer, to be an efficient way to connect peers (client and devices) via the internet. 

Due to the predictability of cost in a based P2P connectivity solution, Nabto can deliver an all-inclusive, one-time price to vendors. In turn, the vendor can price this into their products, just as a simple-to-price hardware component. 

When It Comes to Pricing, You Should Look for Long Term Stability and Sustainability

While there are still benefits to the subscription model, it is vital that businesses take into consideration IoT scalability and a project’s ability to grow. 

This is particularly important when looking at how the cloud is used for IoT hosting. When it comes to a subscription-based IoT pricing plan, this needs to be done via an IoT Application Enablement Platform (AEP). Centralized cloud solutions like Microsoft Azure and Amazon Web Services, protect themselves against the long life cycles of IoT devices. In short, they charge a premium.  

Having to depend on a third party that hosts IoT services can get expensive over time. As your business grows, you might require more capacity to facilitate connectivity, which means you could be on the hook for long-term (and costly) subscriptions.

The Solution: A Device-By-Device Pricing Model

There has been a huge demand for an IoT pricing model that answers the concerns listed above. And, here at Nabto, we’ve listened carefully to the needs of our clients. 

What we provide is an innovative P2P technology that essentially bypasses the need to store all the data in the cloud. When the client connects directly to the IoT device with strong access control, data privacy becomes a non-concern for the vendor and user. The user’s data never leaves their own premises. And, of course, direct connections also give the lowest possible latency and facilitate the best possible user experience in direct interaction scenarios.

While our platform is unique, so too is our new pricing model. Instead of the subscription service, we’ve opted for a cost system that better fits our clients’ needs. 

Nabto has pioneered a revolutionary device-by-device pricing model that is actually unlike anything available on the current market. The best part is the relatively small device license fee only needs to be paid once in the device’s lifetime, and our prices are as low as $1.50 for five years of hosting

How Nabto’s New Pricing Model Works

So how are we able to offer such a low license rate? It’s quite simple. We’ve already established that storing everything on the cloud ramps up costs because of the AEP. By focusing on direct communication scenarios, we’re able to offer an IoT pricing plan at a much lower rate. 

To break it down, our users purchase a license for each embedded device and a one-off license to access our Nabto server software, known as the basestation. There is also no charge for the client software. 

From there, we are simply mediating connections via the cloud. All application data is actually stored at the device level and communication primarily takes place directly on the edge instead of through our services, which drives down costs substantially.

What’s more, we have looked at over a decade of data to assess how users interact with their devices. As a result, we also built pricing models that reflect usage accordingly.

Want to know how Nabto’s pricing model works and find a package that works for you? Visit our pricing page now

The Benefits of this Pricing Model

IoT connectivity charged by device at a fixed cost

Rather than pay an ongoing subscription, our enterprise IoT connectivity solution comes with a fixed cost. That means hosting setup, maintenance, and support as well as device license prices are clear from the start. And, our IoT platform pricing model won’t change. 

Simple pricing model 

Our straightforward IoT pricing plan has no hidden fees. With our bronze, silver, gold, and enterprise options, businesses are able to select a package that is specifically catered to their needs. 

From startups to large-scale enterprises, we provide varying services and can also offer added 24/7 support. This aids in our mission of helping vendors achieve secure, remote connectivity to IoT devices. 

Cheaper and more transparent than competitors 

We create value for the end-user by making the process easier. It is cheaper because the main cloud hosting fee is removed and we even offer massive discounts for upgrading to different packages

How Is Nabto Able to Offer This?

Nabto’s structure and pricing plan are certainly unique. But, we have also taken a lot of time to ensure that our P2P systems truly deliver. With over 10 years of data on device use, we have a deep understanding of what pricing models work and how our clients can best achieve their end goals.

As the IoT industry continues to evolve, so too should the billing methods. In the future, the subscription model may very well be overtaken by more pioneering systems like our own. 

Thanks to our pricing model and innovative P2P solution, we’ve just welcomed one of our largest customers to the Nabto platform. Perhaps your business could be next! 

Do you want to try Nabto for yourself? Get in touch for a free consultation today.

Want to learn more about P2P IoT?

Please visit the:
P2P IoT Academy

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Nabto Platform Overview

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