IIoT, SCADA & Edge Connectivity worked example

Network Latency Cost at 43% share of events confirmed network-caused: a worked example

Suppose share of events confirmed network-caused falls to 43%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate the annual cost of OT network latency events from the count of slow-network events causing production impact, the loss per event in dollars, the share of events confirmed network-caused, and a fixed network monitoring or upgrade adder.

The inputs for this scenario

  • Slow-network events causing production impact per year: 35 events (held at the documented default)
  • Loss per slow-network event: 4,500 $ / event (held at the documented default)
  • Share of events confirmed network-caused: 43 % (the input this scenario stresses; the baseline uses 60)
  • Fixed network monitoring or upgrade cost: 22,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable network latency cost = events per year × loss per event × share confirmed network-caused.
  • Total network latency cost works out to 89,725 $ at these inputs, and this is the headline figure for the scenario.
  • Latency cost per event works out to 2,564 $ / piece at these inputs.
  • Variable network latency cost works out to 67,725 $ at these inputs.
  • Fixed network monitoring or upgrade cost works out to 22,000 $ at these inputs.

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 22.98% below the baseline at 89,725 $.
  • It computes the total annual cost of network latency as the attributed production loss from slow-network events plus a fixed monitoring or upgrade cost. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total network latency cost: 89,725 $ (headline result)
  • Latency cost per event: 2,564 $ / piece
  • Variable network latency cost: 67,725 $
  • Fixed network monitoring or upgrade cost: 22,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Network Latency Cost calculator, set share of events confirmed network-caused to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.