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# IOT

Budget
Recommendations

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Budget recommendations

Accurate estimation of project costs is crucial for using IoT in software engineering, as when developing the IT projects chances of success are increased by keeping focus on the project's scope, timeline, budget and resources. One of the first things a client usually wants to know about the project is how much it will cost. Of course, it is not easy to predict the exact cost of the project. Various mathematical methods and information technologies can be used for this purpose. This is the object of our inquiry. The total IT project costs are determined by the amount of its cost estimate. Cost estimate is estimation of resources required for the development and implementation of the project. Cost estimate is a calculation process. Taking into account the shortcomings mentioned above, it is necessary to designate the method of calculating we will use to achieve our objectives.

Having analyzed the data obtained we consider that the most effective and exact estimates applied in IT sphere are the analogous estimating and parametric estimating. Analogous estimating uses a similar past project to estimate the cost of the current project. If the projects are very similar to each other, then the estimate is more likely to be exact. Parametric estimating is a more accurate technique for estimating cost which uses the relationship between variables to calculate the cost. Essentially, a parametric estimate is determined by identifying the unit cost and the number of units required for the project. The measurement must be scalable in order to be accurate.


The costs of the Internet of things are measured mostly by the amount of information stored in databases. Low price of installation and LPWAN technology allows to reduce costs of the Internet component. Within the range of IoT problems special emphasis is made on engineering economics. The program for studying the aspects of cost management aimed at identifying an adequate parametric model and included calculations using Program Evaluation and Review Technique that enabled to draw a conclusion about the IoT project cost.

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