IIoT, SCADA & Edge Connectivity worked example

Network Latency Cost at 69% share of events confirmed network-caused: a worked example

This scenario runs the network latency cost calculation on the strong side: 69% share of events confirmed network-caused, with every other input held at its documented default. Use it when a network engineer or controls lead needs to put a dollar number on slow-network impact (PLC heartbeat misses, dashboard timeouts, vision system delays) before a network upgrade or QoS change.

The inputs for this scenario

  • Slow-network events causing production impact per year: 35 events (unchanged)
  • Loss per slow-network event: 4,500 $ / event (unchanged)
  • Share of events confirmed network-caused: 69 % (raised for this scenario; the documented default is 60)
  • Fixed network monitoring or upgrade cost: 22,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable network latency cost = events per year × loss per event × share confirmed network-caused) to the inputs above produces each figure below.
  • At this operating point the engine returns 130,675 $ for total network latency cost, the number this scenario is built around.
  • At this operating point the engine returns 3,734 $ / piece for latency cost per event.
  • At this operating point the engine returns 108,675 $ for variable network latency cost.
  • At this operating point the engine returns 22,000 $ for fixed network monitoring or upgrade cost.

How this compares with the baseline

  • Against the tool's baseline example, where share of events confirmed network-caused sits at 60% and the headline result is 116,500 $, this scenario comes in 12.17% above the baseline at 130,675 $.
  • Use it when building the business case for an OT network upgrade, edge deployment, or network monitoring tool. 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

  • Total network latency cost: 130,675 $ (headline result)
  • Latency cost per event: 3,734 $ / piece
  • Variable network latency cost: 108,675 $
  • Fixed network monitoring or upgrade cost: 22,000 $

Run it with your numbers

  • Every input above is editable in the live Network Latency Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.