The IoT License Trap: Why You're Paying for Free Software – And How Our Model Saves 60%

The IoT market has an open secret. One that service providers don't like to talk about because it threatens their business model.

When you shop for an IoT platform, you're flooded with glossy brochures and proprietary brand names. But look under the hood, and you'll often find just open-source technology – frequently ThingsBoard, Grafana, or ChirpStack – repackaged ("white-labeled") and resold at a premium.

The problem: You're paying license fees for software that's actually free. And you're usually paying per device.

At merkaio, we believe this approach is wrong. You should pay for real engineering work – for setup, secure operations, and customization – not for artificial licenses.

Table of Contents

• The Math: SaaS vs. Infrastructure Pricing
  • Model A: The Classic SaaS Provider
  • Model B: The merkaio Way (Managed Infrastructure)
  • The Savings: €10,800 per Year (60%)
• "But Open Source is Free – What Am I Paying You For?"
  • 1. Build (The Setup)
  • 2. Operate (The Operations)
  • 3. Customize (The Adaptation)
• No Strings Attached: Your Stack, Your Data
• Ready to Break Old Patterns?

The Math: SaaS vs. Infrastructure Pricing

Let's run the numbers. We'll compare a typical "white-label SaaS" offering with the merkaio Build & Operate model.

Scenario: A mid-sized company wants to run 500 sensors.

Model A: The Classic SaaS Provider

Downside: If you scale to 2,000 devices, your costs quadruple linearly.

Model B: The merkaio Way (Managed Infrastructure)

With us, you pay for infrastructure and operations. 500 devices barely use any CPU power. A solid, dedicated stack is more than enough.

The Savings: €10,800 per Year (60%)

And the best part: when you scale to 2,000 devices, our costs only increase marginally (e.g., to €800 for a larger server). The gap keeps widening.

"But Open Source is Free – What Am I Paying You For?"

This is the crucial question. If the software (ThingsBoard/ChirpStack) costs nothing, why isn't the merkaio invoice €0?

The answer: Software is like building materials. We are the architects and craftsmen.

A pile of bricks isn't a house. And a downloaded server isn't a secure IoT platform. Our value creation consists of three pillars:

1. Build (The Setup)

We don't just install standard software. We design an architecture that fits your use case.

• Which database is right? (PostgreSQL vs. TimescaleDB)
• How do we secure the gateways? (VPN tunnels, certificates)
• How do we scale when data load increases?

Whether cold chain monitoring or industrial monitoring – every use case has unique requirements.

2. Operate (The Operations)

This is our core business. Software ages. Servers fail. Disks fill up.

• We apply security updates before hackers find vulnerabilities.
• We monitor the system 24/7 (heartbeat monitoring).
• We handle backups and disaster recovery.

You're paying for peace of mind. Learn more at Managed Hosting.

3. Customize (The Adaptation)

This is where the wheat separates from the chaff. Standard platforms often hit their limits. Through our merkaio dev division, we bridge the gaps:

• Decoders: We program parsers for complex industrial machines.
• Integration: We don't just push data to dashboards – we pipe it directly into your SAP or ERP.
• Apps: We build custom web frontends or mobile apps for your end customers that run on top of the platform.

Bottom line: You're not paying for the "right to use the software" (license), but for the work to make it usable (engineering).

No Strings Attached: Your Stack, Your Data

The biggest hidden cost factor with proprietary providers is vendor lock-in.

Since you don't have access to the database, you can't leave the provider without losing your data history.

At merkaio: It's your stack.

We use open standards. If you ever decide to take over operations yourself, we hand you the keys (database dump, config files). You're with us because we're good – not because you're trapped.

Ready to Break Old Patterns?

Let us analyze your IoT costs. We'll show you transparently what a professionally operated stack really costs.

Request a Free Infrastructure Audit