Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News

 

Nest Gives Google Its Next Big Data Play: Energy

Jan 13 2014, 5:51pm CST | by

1 Updates
Nest Gives Google Its Next Big Data Play: Energy
Photo Credit: Forbes
 
 

Comments

Full Story

Nest Gives Google Its Next Big Data Play: Energy

When Google bought Motorola in 2012, its mandate was to get more millions people on the mobile web. Now with its $3.2 billion purchase of Nest Labs, Google could get millions of homes connected to a different kind of web: an energy management system powered by Big Data.

The sexy world of smart homes aside, one easily overlooked but important part of Nest’s business is energy management. Though the company has booked an estimated $275 million in sales from its Leaning Thermostat since the device first went on sale, the company launched this small but growing revenue stream for itself seven months ago, a lucrative service it sells to energy utilities that helps them better manage the energy demand of households.

Nest founder and CEO Tony Fadell told Forbes last month that his company had struck deals with close to 20 utility companies, who paid Nest $30 to $50 per thermostat annually, to manage the energy usage of Nest customers who had opted into their utility’s demand-response program.

As part of the program, Nest temporarily take over the healing and cooling of a homes for a set period, perhaps a few hours, and customers are notified that an “event” is set to happen some time beforehand. When Nest does this over multiple homes in a neighborhood or county it can, Fadell claimed, lower energy costs for utilities by 50%, by re-routing peak energy being used in empty homes.

“We know how many people are home during those times,” he said “We know which homes have cooling, we can go through the data and we can say we believe we’re a five megawatt power generator or 10 megawatts in this county. That’s what we can deliver – 50-60% of the energy that was consumed in that window has been shifted away.”

The services makes Nest a middle man for utility companies, meaning that Google itself will now play a role in managing energy efficiency programs across wide swathes of home and even counties – something that Google has been keen to do for some time.

Google has already been trialling its own smart thermostat project called EnergySense, according to reports out in December, which lets consumer monitor and manage their energy use. Much earlier, in 2009, Google also launched a web-based energy management tool called PowerMeter, then closed the project in 2011, saying it hadn’t scaled as much as the company had hoped.

The answer seems to have been not in letting consumer manage their own power consuming, but getting a third party like Nest to do the job, infiltrating homes by way of a attractively designed, wireless gadget.

“The thing that is so interesting about a thermostat as entry point is that a very large percentage of the cost of energy of a home goes through the thermostat,” said Rob Coneybeer, one of the early investors of Nest.

Nest has been able to “crack” the smart home like no other company, says Peter Nieh of Lightspeed Venture partners, another one of Nest’s backers.

How might Google’s acquisition impact the growth of Nest’s energy management services? Nieh didn’t care to speculate, only saying: “What Google has done well is they have a track record of making substantial acquisition and making them very additive.” While Motorola was “still in the works,” DoubleClick, YouTube and Android had all become integrated but somewhat independent parts of Google’s drive to get more people on the web.

“I don’t think you’re going to be surfing the web from these [thermostats] but they will be connected and with Google they can’ only be enhanced and made more meaningful in consumers’ eyes,” Nieh said.

Here’s Nest co-founder Matt Rogers telling us what Nest has learned from Apple, a company that till today, many thought would be acquiring the Learning Thermostat maker:

Source: Forbes

 

You Might Also Like

Updates


Sponsored Update

Update: 1

Centurion Corp acquires Penang land to develop workers dorm

Source: The Edge Singapore

Centurion Corporation said it has agreed to acquire a piece of land located at Seberang Perai Selatan in Penang, Malaysia, for RM6.3 million ($2.45 million). This marks the group’s first acquisition in another state of Malaysia outside of Johor. Read more. ...
Source: The Edge Singapore   Full article at: The Edge Singapore Aug 12 2014, 9:21am CDT
 


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Barely Legal Pawn: A Funny Promo Video for Emmys featuring Aaron Paul and Bryan Cranston
Barely Legal Pawn: A Funny Promo Video for Emmys featuring Aaron Paul and Bryan Cranston
Bryan Cranston and Aaron Paul, two of the stars on the television show Breaking Bad and and Julia Louis-Dreyfus are acting in an Emmys promo video titled 'Barely Legal Pawn'. It is quite a funny video and made many an individual laugh his head off.
 
 
Lolita Richi is another new Human Barbie
Lolita Richi is another Human Barbie
First it was a Barbie Doll by the company called Mattel. And now the plastic sample has inspired a real life version once again. Another new Human Barbie is Lolita Richi who is just 16-year-old and claimed that she never ever had plastic surgery.
 
 
Jill and Derick Dillard Are Expecting a Baby
The happy couple, who are due in March, have been having fun sharing their news with their family.
 
 
Kate Upton takes Ice Bucket Challenge
Kate Upton takes Ice Bucket Challenge
Kate Upton and her boyfriend Justin Verlander also took the viral Ice Bucket Challenge to support ALS Foundation. See the video of Kate Upton completing the Ice Bucket Challenge below.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.