Nest Helps Google Label the World

Nest Helps Google Label the World

When Google purchased Nest Labs, the home gadget maker, for $3.2 billion, speculations regarding the reason why the tech giant would offer the young company almost $3 million for every day of its existence appeared.

Nest Labs was started by former Apple executive Tony Fardell, also known as the inventor of iPod, and Matt Rogers, a former software executive from the same company. The idea behind Nest’s preciousness is the fact that the two founders reimagine home appliances and connect them to the Internet, thus making them easier to use.

The company’s first product, a thermostat that has the ability to learn the user’s schedule and program itself, saw the daylight in 2011.  The company claims that it can help consumers save up to 20 percent on their heating and cooling bills if they “teach it well.” Because the thermostat can be used with the help of an iPad or an iPhone, Nest quickly reached the front row of the new movement called the Internet of Things, which, according to the Wall Street Journal, puts forward the idea that everyday objects will be more useful if they feature sensors, computing and communications technology.

Nest’s second product is a smoke alarm networked with the thermostat.

Asked why he chose to sell his company to Google, Tony Fardell put financial reasons before anything else, the same source adds. Nest’s expansion was overseen by Google from the former’s early beginnings, financially speaking, so the natural step was to merge with a potent company.

Why Google Was Nest’s Natural Choice

Google’s attempt to enter the world of home devices included a smart home energy monitoring system, Google TV and Nexus Q. Although none of the products were successful, Google’s latest release, called Chromecast, is a TV-streaming device which proves that this company is interested in the Internet of Things and what devices will look like in the near future.

Tony Fardell told USA Today Personal Tech Columnist Ed Baig that Google’s co-founder, Sergey Brin, became interested in helping Nest grow the moment he found out about the Nest Learning Thermostat during a TED meeting in 2011. Although Nest’s founders will be answering to Google’s other half, Larry Page, the latter is also interested in reshaping the tech giant.

According to Business Insider, during a conference for Google stakeholder and clients, Larry Page disclosed the company’s mission, namely “to create beautiful, intuitive services and technologies that are so incredibly useful for people that people use them twice a day, like you might use a toothbrush. There aren’t many things people use twice a day.”

Given Nest’s complex technology that answers simple questions like using a thermostat or a smoke alarm and Larry Page’s desire to put a Google label on as many products as possible, it comes as no surprise that the tech giant wishes to control the next generation of smart gadgets. As Forrester analyst Frank Gillett concluded, “this is about whose service- Google, Amazon, Apple, Microsoft and other- is going to coordinate your smart home for you.”

By Gabriela Motroc



Wall Street Journal Online

Business Insider


USA Today

The Atlantic

2 Responses to "Nest Helps Google Label the World"

  1. Nancy Schimelpfening   January 16, 2014 at 11:59 am

    Thanks so much for the correction, Raj!

  2. Raj   January 16, 2014 at 11:47 am

    It’s Fadell, not Fardell.

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