Alphabet's Nest is Being Folded Back into Google

09 February, 2018, 03:42 | Author: Darrell Baldwin
  • Rick Osterloh google hardware boss

It's always been a little unusual that Google and Nest were two Alphabet companies making smart home products independent of each other, and the rumors have been circulating for a while now that this move was on the cards. "It just makes sense to be developing them together", Osterloh told CNET in an interview. Until today, the other products of Nest was not 100% integrated with Google.

Google's blog post says the merger will combine "hardware, software, and services" between the two companies. Wednesday's announcement stated that Nest sold more devices in 2017 than it did in 2015 and 2016 together. However, despite having a new parent company, Nest has primarily operated independently during this time. Fawaz said that Nest has shipped around 11 million products since its founding in 2011. Together with the Nest team and our partners, we've helped save over 19 billion kWh of energy, helped save a number of lives - both human and pets - with Nest Protect, and helped families feel more safe at home with Nest Secure and Nest Cam. Google and Nest, a company it acquired in 2014, already share supply chain operations, launch events, and packaging.

In the same post, it was indicated that teams from Google and Nest will closely collaborate to realize the common goal of building on the gains so far achieved by the company's AI thrust with Google Assistant taking a central role in the project's implementation. Nest and Google also will stay at their separate offices "for the foreseeable future", she said.




In essence, Google is emulating Amazon here. The market is only getting more crowded.

The more daunting task is to topple Amazon's Echo speaker line and the increasingly ubiquitous Alexa voice assistant. To fend off the competition, Google needs better integration AI technologies and consumer products, and this is what it is doing by integrating Nest. As a thermostat originally created to shave down a customer's bill and help the planet in the process, Nest has been reimagined as one cog in a larger smart home machine.

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