Google Is Absorbing Nest And With It, Your Smart Home

09 February, 2018, 03:43 | Author: Jeannette Greene
  • Smart Home Unit Nest Is Spun Back Into Google

When Google established Alphabet as a parent company for itself, things got very confusing. "It just makes sense to be developing them together", Osterloh says.

Nest began with the smart thermostat but has gone on to build a wide ecosystem of products, including smoke/CO2 detectors, cameras, and soon, smart doorbells and alarms.

The reason for Nest rejoining the Google family is to further strengthen Google's hardware portfolio. Nest operated on its own as part of the establishment in 2015 of holding company Alphabet, which also explored selling the firm in 2016. In a blog post, the search giant said that Nest is now a part of its plan to expand its smart technology beyond smartphones, and would no longer operate as a separate division.

Alphabet's Google unit last week announced it had paid $1.1bn to buy a large chunk of HTC's hardware operations, gaining around 2,000 engineers in Asia. However this seems to be mostly done for formality purposes because according to Google, since both teams already work so closely with each other, there will be little disruption, if at all.

Apparently, the merger between Nest and Google's Hardware team has been in the works for a few months, giving credibility to the November Wall Street Journal article suggesting the move would soon take place.

In essence, Google is emulating Amazon here.

Google has gained much from this deal, and Osterloh has said it himself, "These new colleagues bring decades of experience achieving a series of "firsts" particularly in the smartphone industry - including bringing to market the first 3G smartphone in 2005, the first touch-centric phone in 2007, and the first all-metal unibody phone in 2013".

It's unclear whether the Nest branding will continue or whether Google branding will be in effect for future products.

The more daunting task is to topple Amazon's Echo speaker line and the increasingly ubiquitous Alexa voice assistant.

Nest is most famous for its smart thermostats Learning and E, and its top-of-the-range security cameras Cam IQ and Cam Outdoor.



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