On Monday, Google announced
it was buying smart-device company Nest Labs for $3.2 billion in cash.
This is Google's first major foray into connected homes, and news of the
deal ignited a flurry of speculation about what the Silicon Valley
giant really wants from Nest, as well as some privacy concerns.
Nest currently only sells
two products: a smart thermostat that learns your habits over time and
adjusts the temperature accordingly, and a personable smoke and carbon monoxide detector that doesn't panic when you burn toast.
While the devices have
been popular, on the surface they don't seem like they move enough units
to be worth such a hefty investment, even at $130 to $250 each. It's
what's behind the scenes and inside the gadgets that makes Nest a
coveted get for Google.
Nest makes impeccably
designed hardware powered by clever algorithms. Its staff comes from
major companies like Apple, Sling and Logitech and is experienced in
machine learning, product design, artificial intelligence and robotics.
Nest is a standout in the
increasingly crowded connected-home market. It may only have two
products, but those devices are considered some of the best in the
field.
Test-driving a $3.2B thermostat
Does Google know too much about us?
The house that Google and Nest built
For now, Nest is expected
to continue operating as its own brand headed by co-founders Tony
Fadell and Matt Rogers, but down the line Google could tap the team's
expertise to help with its own hit-and-miss attempts at creating and
selling devices (remember the Nexus Q?).
The Nest thermostat uses
motion, light, temperature and humidity sensors to collect information
about what's going on in the home and uses that information to control
heating and cooling and predict patterns. The end result is a
customized, more energy efficient home. Like any good smart device, it
can be controlled from a smartphone or tablet so your house can be
prewarmed before you get out of bed or return from work.
"It's amazing to see how
they have taken important but unloved devices and made them beautifully
simple and useful," said Google CEO Larry Page in a brief post announcing the deal.
Aside from the financial
windfall, there's a lot Nest could gain from having Google as its
parent company. Nest has been slow with product releases so far. The
first thermostat came out in the fall of 2011, and the company didn't
release a new product for another two years, when it announced the Nest
Protect smoke and CO detector.
With Google resources,
Nest can ramp up its design process and develop more projects. New
products will come faster and roll out in more locations globally.
Google also wants to be a
player in the connected home. The trend of connecting previously "dumb"
devices to each other and the Internet is sometimes referred to as the
"Internet of things." As regular objects get connected, they gain the
ability to collect information about mundane happenings around them.
That data can be used to learn about a person over time and offer a
customized, automated experience.
At home, that can mean a
refrigerator that knows what food is inside and when it expires, or
security systems that send your smartphone a push notification when they
detect anything unusual.
Google has cultivated a
diverse and seemingly random set of interests since starting out as a
search engine and advertising company. It dabbles in e-mail,
smartphones, self-driving cars, social networking, smart glasses,
television and robots. Nest is the latest in a string of intriguing
acquisitions, following a handful of robotics companies.
In the near future,
these interests may not seem so disconnected. Today's emerging
technologies will eventually blend together. The divisions between
smartphones, home automation, cars, smart glasses and watches and
fitness trackers will fall away, and our gadgets and data will work
together for a seamless experience.
All of your devices will
communicate with each other. Where one drops off another will pick up.
Your self-driving car will share push notifications from your
smartphone, turn it over to your Google Glass when you park and start
walking, and then a smart home can take over when you walk through your
front door. (Thanks to GPS on your phone and car, the house knew exactly
when you were arriving and turned on your favorite TV show.) Streams of
data from all these devices will be collected in one place where a
company like Google will analyze it and learn about you over time,
programming hardware and software to meet your unique needs.
The Nest Protect is a smart smoke and CO detector.
A few years from now,
you might even connect your smart devices to your brain. Dean Aslam, a
professor of electrical and computer engineering at Michigan State
University and a senior member of IEEE, is working on miniaturizing
single electrode devices that can be placed in your hair and read
electrical activity from the brain through a technology called
electroencephalography, or EEG.
"It can read the
brainwaves which determine the state of our minds, like whether we're
healthy or unhealthy. A lot of information can be obtained [from EEG],"
Aslam said.
He says in the future,
smart homes will pick up on cues from the body and brain to adjust
things like temperature. It if detects you're in a deep REM sleep, a
home might increase the level of security. The technology wouldn't be
limited to smart homes and could expand to include personal heath care
systems.
If this is the future, it's no mystery why Google would want to get into the business now.
Google owning another
tool that would allow it to gather more data immediately triggered
privacy concerns. Fresh off of an unpopular decision to allow Google+
contacts to contact people in their circles through Gmail, Google
already has users who are unsettled by the vast amounts of data the
company can collect. Google has access to a person's data through the
Chrome browser, Gmail accounts, Google search terms and the many
advanced sensors on an Android smartphone.
That wide reach is
actually a good reason not to worry about a smart thermostat. Google can
collect most of the same information through an Android phone. It
already knows your location and your daily schedule. Samsung's Galaxy S4
Android smartphone even has a built-in temperature sensor.
Google has access to much of your data. Now it wants to put it to use connecting your home, work and mobile life.
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