IIoT, SCADA & Edge Connectivity worked example

Edge Compute Payback with edge compute project cost of 112,500 $: a worked example

This scenario runs the edge compute payback calculation on the strong side: edge compute project cost of 112,500 $, with every other input held at its documented default. Use it when a plant IT or analytics lead is comparing a cloud-only architecture to an edge-plus-cloud architecture and needs a payback number before signing the edge compute order.

The inputs for this scenario

  • Edge compute project cost: 112,500 $ (raised for this scenario; the documented default is 45,000)
  • Annual savings from edge architecture: 22,000 $ / yr (unchanged)
  • Annual edge operating cost: 3,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual edge savings = annual savings - annual edge operating cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 6.08 yr for edge compute payback period, the number this scenario is built around.
  • At this operating point the engine returns 18,500 $ / yr for net annual edge savings.
  • At this operating point the engine returns 112,500 $ for edge compute project cost.
  • At this operating point the engine returns -20,000 $ for five-year net edge value.

How this compares with the baseline

  • Against the tool's baseline example, where edge compute project cost sits at 45,000 $ and the headline result is 2.43 yr, this scenario comes in 150% above the baseline at 6.08 yr.
  • Use it when deciding whether to deploy edge gateways or controllers for SCADA, IIoT, or machine analytics instead of routing everything to the cloud or a central server. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Edge compute payback period: 6.08 yr (headline result)
  • Net annual edge savings: 18,500 $ / yr
  • Edge compute project cost: 112,500 $
  • Five-year net edge value: -20,000 $

Run it with your numbers

  • Every input above is editable in the live Edge Compute Payback calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.