Remember, IoT Itself Isn’t an App!

We prefer thinking of Internet of Things (IoT) as a software that links devices into an independent network so they can:

• Share data securely across a network of connected devices and sensors
• Analyze data to generate actionable insights
• Update dashboards and send real-time alerts and notifications
• Trigger automated actions without manual intervention

If you need a network of multiple devices talking to each other, you need an IoT.

This makes IoT integration common in numerous software verticals from national defense to smart toilets.

And as some people have bowels that qualify as bioweapons, perhaps smart toilets are also defense 🤮

Where the ‘App’ Comes into Play

Unfortunately, we still can’t stick a plug into someone’s head and connect them to an IoT network without killing them.

So the data in generated by a network gets displayed on a user interface for humans to understand and interact with.

This is where a mobile or web app (or a simple dashboard) comes in, and where an app agency like Upstack Studio steps in.

We guess you could call it an IoT app, and it’s like the brain of the network where users can:

• Get real time updates of key metrics
• Generate reports showing trends in data over time
• Verify IoT components are operational
• View notification
• Override automations if necessary
• Track actions by other human users
• And whatever else your use case requires!

Unlike many types of software, a custom IoT application makes sense as each use case tends to be unique enough that anything short of custom development requires too many compromises.

Below we break down key considerations and what it’s like to work with Upstack Studio.

IoT App Development Cost Overview

It will always be case-specific, but here are conservative ballpark figures:

• Total Development: USD160,000
• MVP Development: USD50,000
• Total Development Time: 12–18 months
• Time to MVP: 16–20 weeks
• Maintenance: USD4,000 / month (not including cloud hosting, IoT device management, or ongoing feature development)

This assumes three very important things:

1. A single cross-platform codebase for web + mobile dashboards.
2. A cloud-first architecture (AWS IoT Core, Azure IoT Hub, or GCP IoT).
3. No major scope creep or drastic hardware changes mid-project.

We’ll break these down after covering the main development steps.

IoT App Features

For every feature listed below, there’s space to specify custom needs for your IoT network.

Of course, chances are typical needs will suffice, but no one knows your business requirements more than you 🙂

Core Features

These are features most IoT apps require to function and serve users effectively and should be part of your MVP.

Feature	Typical Needs	Custom Needs (editable)
Notifications & Alerts	Push notifications, emails, or SMS alerts Configurable thresholds to trigger alerts History/log of past alerts
Device Management	List of connected IoT devices with status indicators Ability to add/remove devices (if permitted) Firmware or software status tracking
Automation Control	Trigger automated actions based on sensor data Override or pause automation manually Create custom automation rules
Data Reporting & Analytics	Generate reports over time for trends and insights Export data in common formats (CSV, PDF) Visualize historical data to identify patterns
User Management	Role-based access (admin, user, guest) Ability to invite/remove users Permissions management for different features
Remote Access	Access IoT data and controls from mobile or web Secure login and session management Optionally, offline caching or local device sync
Integration Capabilities	API endpoints to connect with other systems Third-party integrations (cloud storage, analytics tools) Webhooks for external notifications

Enhanced Features

With these features, an IoT app does its job significantly better.

Because they add to development costs and time, we usually advise adding them after the MVP.

But it’s not a bad idea to decide on them now so we can future proof your tech stack.

Feature	Details	Custom Needs (editable)
AI-driven Insights	– Detect anomalies in device data – Predict maintenance needs – Provide actionable recommendations
User Customization	– Drag-and-drop widgets for user personalization – Save multiple dashboard layouts – Real-time data visualization
Geo-mapping	– Visualize location-based IoT devices on maps – Track device movement and status – Filter devices by region or category

IoT App Integrations

As you can probably guess from the list of features, IoT apps rely heavily on integrations.

Below is a list of common types, again with an editable column so you can state your chosen providers (and see which ones you need to hunt down).

Integration Type	Purpose	Your Provider (editable)
Realtime Data Transport	MQTT, WebSockets, or Firebase to fetch live sensor data	It’s ok to say not sure 🙂
Charts & Visualization	Display graphs, charts, and dashboards for IoT metrics
Notifications	Push notifications, emails, or SMS for alerts
Device Management	Track connected devices, firmware updates, and statuses
Automation & Workflow	Trigger rules or actions based on sensor readings
Analytics & AI	Detect anomalies, predict maintenance, or identify trends
User Management	Role-based access, authentication, and activity logs
Remote Access & Security	Secure login, offline caching, and data sync

6 Stages of Custom IoT Application Development

Building custom software means following the typical stages of app development, of which there are six (seven if you include the work done before approaching a developer).

Stage 0: Prepare Your IoT App Brief

A brief is a preliminary document that gives developers an idea of your project, namely :

• Problem
• Solution
• High-level Requirements
• Budget Range
• Timeline
• Similar Applications

It gives us context and helps us form clarifying questions when we move to the next stage.

Secretly, developers also use it to filter out clients who aren’t serious! 

Stage 1: Requirements Gathering

During this phase, we work with you to define the requirements for your Iot app.

We’ll take you through our zero to launch, where we align on: 

• Target Audience
• Problem Statements
• Value Proposition
• Primary Platform

Based on our discussions, we come up with a timeline for all features.

And most importantly, we shortlist essential ones to roll out an MVP within 12 – 16 weeks.

Stage 2: UI/UX Design

If your IoT app compromises on either, user adoption will always be a challenge.

You’ll constantly hear “Why can’t it be more like [insert popular alternative here]?” complaints.

Our UI/UX designers ensure your app not only looks great but delivers a seamless, enjoyable user experience.

Stage 3: Back and Frontend Development

If you’re familiar with Agile methodology, we work in two-week Sprints.

During a Sprint, our backend developers build the back-end architecture while the frontend guys turn the designs by the UI/UX team into functional app interfaces.

At the end, we get your approval on progress and align on action items for the next Sprint.

If that sounds like gibberish, here’s a guide to Agile methodology for non-techs!

Stage 4: QA & Testing

The main purpose of this phase is for us to improve the stability of the app while minimising bugs that impact the user experience.

There’s no such thing as bug-free software, but that is no reason to compromise the user experience.

Stage 5: Launching Your MVP

We deploy your Minimum Viable Product (MVP) to a live environment so users can begin using the app.

As they use it, we’ll be on hand to:

• fix high-priority issues that were initially missed
• monitor how core features perform
• identify unexpected user behaviour 
• see where improvements are needed

Stage 6: Iterate & Maintain

Based on how your team responds to the early version of your IoT app, we reevaluate the product roadmap together.

More often than not, many features that were initially thought critical turn out to be unnecessary.

Meanwhile, use cases that nobody thought of suddenly reveal themselves.

Ultimately, we align on the development of the rest of the app to truly serve your business needs, alongside regular updates, bug fixes, and general maintenance to ensure the parts of the app that have been built remain stable.

MVP Timeline

WEEK	DESIGN	DEVELOPMENT
0	Kickoff meeting to align on essential features for MVP in 16 weeks
1	Initial UI/UX + User Feedback: Recruit users for usability testing Produce mid-fi designs Conduct user testing with designs	Plan Front and Backend: API Specification API Controller List API Service Database Schema
2	Complete UI/UX: Iterate designs based on user feedback Begin hi-fi designs	Development Sprint Planning (weekly cycles): (Start of Sprint) Plan work for the coming week Work on, test, and write automated tests for features Submit pull requests for code, UI/UX, and functionality review Update request if changes / improvements required Merge feature and move to next item (End of Sprint) Demo to you and share the link to install / test Plan work for the coming week Repeat steps 2 – 6 Note: Receive designs + code review in Week 5
3
4
5	Handoff designs to developers
6
7
8
9
10		Development Sprint Planning + QA Testing (weekly cycles): Thorough QA testing Security audit Automated testing
11
12	Launch + support / bug fixing
13	App + documentation ready for handover to you or your team

Estimating ROI on a Custom IoT App

While estimating custom software ROI is never easy, it’s especially hard with an IoT app since the app itself is just one of several costs. 

You may need one or one hundred sensors, or none at all if you just tap into a phone’s existing hardware!

That said, if you’re serious, you can for sure estimate total costs and revenue to an acceptable degree of accuracy.

Then just use this formula:

ROI (%) = Estimated Revenue − Estimated Costs Estimated Costs × 100

Or plug the numbers into our nifty little software ROI calculator.

The Biggest Hurdles to Custom Software Development

Our estimates assume no major scope creep, which is extremely common.

Scope creep is by the main reason software projects go over budget, and the root causes are hard pills for businesses to swallow.

Poor Internal Oversight

It’s common for teams to each track their own KPIs with no idea what other teams are doing.

Without someone to unite the departments and see the big picture, the business ends up with an incomplete (or wrong) understanding of what it needs from a loyalty app.

The bigger the organization, the more common this problem tends to be.

PSA: Consider White Label IoT Apps Before Full Custom

If you haven’t, do your business a favour and check out white label IoT solutions.

They give you a semi-custom IoT app with all the core features we listed above, and with some level of customization.

We have no idea which are any good, but you know who probably does?

Reddit–so go and ask r/IOT!

Custom IoT app development makes sense when:

• You’re in a highly regulated industry (healthcare, aviation, energy).
• You’ve outgrown the limits of existing platforms.
• Your devices require very specific workflows.
• You need brand-level differentiation beyond a white-label dashboard.

Otherwise, off-the-shelf solutions may give you 80% of what you need at 20% of the cost.

If you’re unsure, feel free to reach out for an honest assessment!

If you have a custom software project in mind and need help estimating ROI, get in touch with us and we’d be happy to help! Also, consider joining our mailing list for a one-stop resource on everything from SaaS validation to execution and promotion. Get a nifty list of questions to ask app developers when you sign up!