Google’s latest acquisition of Nest, a company that creates home automation technology, indicates that the company is starting to agree with the “Apple vision,” which believes technology companies should create hardware and software solutions in addition to an online platform. Google has wanted to get into the market of “connected home”-type systems for a while, and after a 3.2 billion dollar agreement, Google was able to get its finally foot in the door.
As per the agreement, Nest will remain a separate unit within Google. CEO and cofounder of Nest, Tony Fadell, believes that Google will help Nest’s capabilities within home automation grow and develop ideas at a much faster rate than if the company were to go it alone. Smart thermostats, much like the model Nest developed, are projected to gain a strong foothold in the marketplace next year. Google has alluded to the idea that they would also be interested in developing their own home energy monitoring system.
However, the current projected growth of home automation technology hardly begins to justify the 3.2 billion dollar purchase. It is assumed that Google, like many companies, is starting to believe that consumers and producers will realize that they can save time and money by creating products and applications that can all be centralized to the Internet.
However, Google’s current privacy policy could have a drastic effect on Nest as a business. Nest products collect tons of information on customers’ personal habits and preferences, including when they are at home and when they are away. Previously, consumers have looked to trusted interactive home security brands—brands that aren’t notorious for large amounts of data mining or privacy issues. The key to this acquisitions success lies in whether or not typical consumers will be able to trust Google, a giant Internet entity, with their home automation.