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Google feathering its Nest? Or are they just "check kiting"?

Stashed in: Google Acquisitions, Android, Awesome, Google, Nest, Google Ventures, Net of Things, Internet of Things

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How many people think Nest is really worth $3.2 billion?  Cash?? Google Ventures lead their Series-B and Series-C, but now Google Corporate is buying them.

Google has been trying to jumpstart Android at Home for years.

Nest gives them an installed base.

It's worth it to buy an installed base -- remember how well that worked when Google bought YouTube.

Also, the Nest founders were the designers of the iPod.

They will be very useful in designing more Android devices in the Internet of Things. 

Google Nest meme Chrome funny

Google is buying Nest Labs for $3.2 billion. 

Nest Labs makes Internet connected thermostats and smoke detectors. 

It was founded by Tony Fadell, the guy most responsible for the iPod after Steve Jobs. 

It's incredible to think that he's going to be working for Google considering Apple and Google are bitter enemies. 


Creator of Android Andy Rubin also used to work at Apple:

Apple and Google aren't enemies. They have Bill Campbell in common:

January 2013: 40k/month thermostats per year: 10MSo, assume the largest number you can think of, 40k-60k*12 + 10M = about 11 million.  So $290 per customer acquisition costs?  The thermostats themselves cost about $250.   It's also interesting the list of patents. struck a patent deal with Intellectual Ventures.“The licensing agreement avoids potential infringement suits between IV and Nest, but does not mitigate any potential legal liability/risk that Nest has with respect to Honeywell’s portfolio,” says Matt Mitchell, a patent attorney specializing in startups. “Practically, however, use of the patents in the agreement may give Nest the opportunity to counterclaim against Honeywell. This possibility could deter Honeywell from asserting future claims against Nest , encourage them to settle existing suits, or enter into more licensing agreements with Nest.

Buy in or die is quickly becoming the byword when it comes to companies developing heavily integrated devices like smartphones or smart thermostats. Companies like Apple, Google, Microsoft, Samsung and others file and hoard patents to protect their product portfolio and litigate with. And another whole layer of players like IV skip the whole product part of the equation and simply use a portfolio of acquired patents to squeeze money from the industry.

A Honeywell representative had not delivered a statement at time of publishing.

In Google's case they've been frustrated trying to jumpstart ANY Internet of Things effort.

Nest gives them a foundation they can a new market build around.

The big bets Google have made, have all been about entering new markets by buying an established (and growing!) installed base: Display Ads (Doubleclick), Video Ads (YouTube), Mobile OS (Android), Mobile Ads (AdMob), Mobile Devices (Motorola), and now Internet of Things (Nest).

In that context you could say Google's bet on Uber is entering the self-driving cars market early, too.

recode reports that Nest will report to Larry Page, like Search, Ads, Social, Local, Android/Chrome, and YouTube do:

After talking to Larry [Page], he assured me that Nest is going to stay Nest. A startup has two choices: Either to stay independent or join up with somebody. With this, we have the best of both worlds.

I will be reporting to Larry. We will have our own offices. The whole goal is not to be totally independent — not just they funnel us money — this is about something much bigger.

So this really is creating a whole new division at Google for Internet of Things.

It really should.

Once thermostats and smoke detectors are connected, what's the next device? ?

Make sure the gardeners didn't turn off the dog's water again.  A nfc door unlocker and automatic door opener for when I walk towards my front door or inner garage door.  Oh, and my know how you can take two polarized pieces of glass (like looking at a digital watch with polarized sun glasses on and the numbers fade out)?  I want all my windows in my house to have two polarized planes of glass such that when you want to make it lighter or darker, it automagically just tilts one of the panes.  You wouldn't even need curtains.

That would be cool and I believe Bill Gates has something like that built into his home's windows.

Okay, the downsides:

It doesn't play music

My wife is freaked now that our home is connected to the Internet, though I doubt anyone will steal the QR code on the back

One more wifi signal in my house

She thinks I spent way too much money

The battery one really does have batteries

The packaging is so well made it's amazingly difficult to get out of it

The voicemod rootkit didn't work

I took two tries to get the device to register with my Nest account as it timed out the first try

If you try to type Nest and alarm in an email, you're sure to get your emails archived for the DOE, though I wonder when Nest will add radiation detection?  Biohazard detection?  Why not go whole hog?  

The updsides:

The carbon monoxide detector is 100x better than the old one

I like waving at the thing, so do my kids

It was easy to installI like the remote alerts/status and mobile apps

It's very elegant lookingI'm happy with my purchase






I wonder what it will take to get the price down. 

A couple more items.  The mounting bracket, if you get it perfectly straight, the actual alarm doesn't sit perfectly straight.  It's like a millimeter short of complete 12'oclock--on both of them.  Also, the power version comes with electrical caps, but no mollies.  

 I plugged the thing in and it complained about low power, so I pulled the blue tab out.  Later in the setup process, it wanted you to pull the blue tab out.  

I had to run up and down the stairs to press the other device and then run back up and press this one.  As before, it took a really long time to register with my account. 

My single biggest complaint?  I had put the device up and then I forgot to scan the QR code.  Holding my iphone5 camera trying to get the stupid QR code to focus in dim light (as the power was off) was really upsetting.  I had to quit out of the app.  Turn the iphone camera on and point it at something else, let the camera auto-focus adjust and then launch the app again.  The app needs 1) better autofocus especially in dim light and b) the ability to use the iphone's light to light up the QR code. 


Those all seem fixable. Next generation should feature those improvements.

Google just sold Motorola for $2.9 billion:

So basically they traded Motorola for Nest. 

Pretty sweet deal.


Yeah, pretty much everyone says this was a smart move.

Now the question is what devices they'll build next.

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