Notes from a recent fixed-scope diagnostic for a connected-hardware company. Details are generalized and no figure here is specific to the client.
The question
The client sold hardware with cloud software attached and had inherited a second product line and a second cloud stack through an acquisition. The working assumption was that the managed IoT platform carrying most of the estate was too expensive and delivery too slow, and that the fix was to finish consolidating onto it and size the team accordingly. The brief was to find out whether that was true.
The approach
Every measured number in the deliverable was tied to a primary source: a contract, an invoice, a line in the P&L, a repository, a telemetry export. Interviews said where to look and were never evidence on their own. Per-device usage was pulled programmatically across the fleet and reconciled against billing exports over more than one day, because a single day can mislead. Each agreement the client provided was read in full.
Findings shipped in stages with the evidence workbook, so the sponsor could challenge the numbers before recommendations were built on them. Every figure was labeled measured, modeled, or a range.
What it showed
Most of the platform charge moved with what devices were configured to send rather than with contract terms, which is what made it addressable without a renegotiation. The platform priced each device by how much data it sent, in bands far apart, so identical devices could land in very different bands depending on configuration. About half the billed fleet had sent no data at all. A material share of billed traffic was internal telemetry that did not need to travel the metered path, a second cause behind a problem that had been attributed to one. Compute was billed at declared limits rather than actual use, and nobody could see actual use because the estate was uninstrumented.
The consolidation that had been assumed as the destination ran into the client’s own customer agreements, which constrained how the regulated product’s data could be hosted. That made the platform question the reverse of the one asked. And the delivery problem was ownership rather than throughput: the software organization lacked dedicated product and architecture roles, so commitments had no single owner.
What was recommended
Six steps worth roughly a third of the platform bill, with no migration and no renegotiation. A firm recommendation against moving the regulated product, referred to counsel. Staying on the platform for now and scoping the alternative properly, with the rebuild estimate left to the people who would deliver it. Two senior hires, in architecture and product, and a decision rule agreed in advance for whether to rebuild.
And a direct answer on the savings target: not reachable on cost efficiency alone. Technical work closes a little under half of it. The remainder is a decision about what the software function is for, and the client now has the evidence to make it.