{"id":4525,"date":"2014-01-16T10:00:52","date_gmt":"2014-01-16T15:00:52","guid":{"rendered":"http:\/\/blog.nccomputertech.com\/?p=4525"},"modified":"2014-01-16T10:00:52","modified_gmt":"2014-01-16T15:00:52","slug":"why-google-paid-3-2-billion-for-nests-smart-thermostats","status":"publish","type":"post","link":"https:\/\/nccomputertech.com\/techtalk\/2014\/01\/16\/why-google-paid-3-2-billion-for-nests-smart-thermostats\/","title":{"rendered":"Why Google paid $3.2 billion for Nest’s smart thermostats"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Google is moving into your home. On Monday, the Internet company said it was acquiring Nest, a maker of smart smoke alarms and thermostats, in a move that gives Google a strong foothold in a hot new market known as the \u201cconnected home.\u201d<\/p>\n

The idea behind the connected home is to connect heating systems, lighting systems and appliances such as refrigerators to the Internet so that they can be made more efficient and controlled from afar. In the process, companies can collect more data about people\u2019s habits, something Google loves.<\/p>\n

Nest\u2019s price tag shows Google means business: $3.2 billion cash. If the deal goes through\u2014which Google expects in the next few months\u2014it will be one of its largest acquisitions since the Internet giant bought YouTube in 2006 for $1.6 billion. Google has been interested in Nest since at least 2011, when it led a round of funding in the company, followed by another in 2012.<\/p>\n

All about Nest<\/p>\n

Nest makes a thermostat and a smoke-and-carbon-monoxide monitor that can be controlled via Wi-Fi from a smartphone, and that can re-program themselves based on people\u2019s behavior. The privately held company was founded in 2010 and has more than 300 employees spread across three countries. A good number of its workers, including CEO Tony Fadell, are former Apple employees.<\/p>\n

So why is Google willing to cough up so much for such a young company? For starters, it likely saw a pool of talented engineers who can help it tap into a hot new market. It may also be seeking a launching pad to play a bigger role in connecting all those home devices, be they thermostats or perhaps one day your toaster oven.<\/p>\n

\u201dThis is a new area for Google, representing a desire to take advantage of all devices,\u201d said Ben Bajarin, director of consumer technology at Creative Strategies, a market intelligence and research firm. \u201cGoogle wants its own platform for this world of connected things.\u201d<\/p>\n

google chromecast<\/p>\n

Google\\’s Chromecast.<\/p>\n

Google certainly wants a bigger presence in the home\u2014it\u2019s shown that already through other products. Earlier this year it unveiled the Chromecast, a $35 device for streaming television, movies and other content to your TV\u2014its answer to Apple TV. It also operates the Play Store, providing all sorts of entertainment options.<\/p>\n

On its own website, Google maintains a \u201dtips\u201d page devoted to Google services in the home, like how to use Google+ to \u201cget the family together.\u201d<\/p>\n

Linking home appliances is an emerging market where Google won\u2019t want to get left behind. The timing of the announcement\u2014coming on the first business day after the massive International CES closed its doors\u2014is interesting. At that show, the connected home was one of the biggest topics.<\/p>\n

Your home\\’s growing brains<\/p>\n

Among the movers, Samsung announced it was developing a software platform for connecting home appliances. Samsung has a head start in some ways, since it\u2019s the leading smartphone maker\u2014the device through which many appliances will be controlled\u2014and it\u2019s a huge maker of appliances like refrigerators and washing machines.<\/p>\n

By acquiring Nest, Google will get its hands on one of the most-talked-about connected-device startups of the past year, which was thanks largely to its Apple pedigree.<\/p>\n

Google is already working to connect other types of devices. It recently announced its Open Automotive Alliance, which would bring Google\u2019s Android system to cars this year, making them smarter.<\/p>\n

Full Story: Why Google paid $3.2 billion for Nest’s smart thermostats | PCWorld<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Google is moving into your home. 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