Google's Nest Purchase And The Plan To Become The 'Home OS'

Posted: Jan 13 2014, 4:21pm CST | by


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Google's Nest Purchase And The Plan To Become The 'Home OS'
Photo Credit: Forbes

Today Google launched yet another moonshot, buying connected device maker Nest for $3.2 billion.

It’s a big move just days after CES, where Nest was one of the most sought after companies in the white hot smart home sector.

So why is Google making this move now? In short, I think Google wants to be your ‘home OS’.

What do I mean by that? Basically, Google wants to essentially own the user interface, the data and the services that help your run your home.

With Nest, they get a company with a strong brand that consumers clearly want, and they also get a company that, in my view (and according to people I’ve talked to) has a larger plan to push deeper into managed home services such as security and monitoring, services that account for billions of dollars annually.

But perhaps most importantly, they finally have a beachhead into a segment of our lives they’ve failed to penetrate without Nest, the home systems space. And it’s not like they haven’t tried, launching Android @ Home at Google I/O conference in 2011. And while the whispers about the effort have continued, the company’s made little external progress.

So now with Nest, not only do they have a beachhead, they have both physical smart home hub and the backend service and management cloud they need for smart home servcies. And while Nest doesn’t run on Android, it will be fairly simple for Google to integrate Nest into a broader Google home “OS” effort that ties together all your services, connects it to your Google accounts, and even pushes the associated data to a home “dashboard” onto a Google powered TV, phone or wearable, all the while allowing you to control any number of home systems through different Google human interfaces be it voice, search or motion.

In short, they now have a pivotal building block for the Google ‘home OS’.

Smart home is going to be big in 2014. Follow Michael Wolf on Twitter or subscribe to his research firm’s newsletter to keep up to date on this fast-changing market. 

Source: Forbes

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