Sadly the "IoT" market is practically predicated on selling some hideously expensive service that you don't want or need on top of a piece of hardware that would be perfectly happy working against a home edge gateway rather than "the cloud". Approaching a VC asking for money for digital lightbulbs and dimmers that work against a local server running on a Wifi-router-like-box? Using a standardized protocol, so you don't need 10 different home edge gateways to orchestrate different tasks? Get out, we don't even want to hear it...
Accessing the Internet should add features - not having the Internet should not burden or brick the device.