After spending many days at CES and perusing the show floor it was clear to me that the big theme at this years CES was The Internet of Everything. I was also struck by the fact that one trend many have been tracking for years, home automation, was up front and center in IOE and this was the first year I saw new products for automating the home that convinced me that we are really close to seeing the home automation dreams of many finally come to fruition.
Nest itself is the darling of home automation at the moment as their Nest connected thermostat has reinvented how a thermostat should work in a connected home and their connected fire alarm adds a new dimension to a very important device that should be in very home. While these products in themselves are great, the genius behind them is Tony Fadell, long time Next and Apple executive who is one of the smartest guys I have met in tech. More importantly, Fadell and team are zeroed in on creating easy to use, powerful home automation platform and devices and surely must have had a powerful roadmap in the works to garner a $3.2 billion cash buyout from Google.
While Google has not said much to date about IOE, their Android OS is at the software center of many IOE related devices and while they had an internal team working on their own version of home automation, buying Nest jumpstarts a major push into home automation Google style. This gives them a powerful platform to build out Google branded devices connected to a host of current and future Google services.
At first, Nest will continue to run generic Linux but you can bet running Android is not far behind. Nest’s platform and future products will also help Google become a powerhouse in home automation faster than if they tried to build their own solutions from scratch. Buying them now gives them the core platform to build on and helps them move to a strong position in IOE that will drive much of the next generation of Internet infrastructure, networks, devices and services over the next three years. Nest delivers them the framework for Google’s Home automation solutions.
So, why Google and not Apple?
Apple is the only major player that has the entire framework to build all types of IOE devices at any level. They have infrastructure, devices, software and services and I believe that they have had an advanced team of engineers who have been working on their own home automation products for years. You will notice that they did not bid for Nest. Nor had they invested in Nest. They had no interest in Nest since they are probably pretty far along in their own home automation roadmap. I believe that this will just be another significant area for them to connect to Apple’s iOS, devices and services and will have their own dedicated home automation devices in the future that helps give them an even stronger Apple and iOS solutions approach to the market.
What is fascinating about this move is that is highlights the reality that our connected homes, and our personal devices will run a number of different operating systems. In essence a consumers connected lifestyle will consist of a heterogeneous mix of operating systems rather than a homogeneous one. Some level of interoperability and standard supports will be key for this to take off in any meaningful way.
I hope you are correct. I am sure Apple has had no shortage of opportunities to scarf up Nest and I think it has been fairly conspicuous that they haven’t. And that Google has so decisively wrapped up the deal could indicate Google is urgently trying to shore up something. Or maybe Google heard something through the grapevine and pulled another AdWords on Apple.
This is going to be interesting to watch. As a Nest owner, however, I am unimpressed and disappointed, even in the face of Fadell’s attempt to soothe concerns.
Joe
“In essence a consumers connected lifestyle will consist of a heterogeneous mix of operating systems rather than a homogeneous one. Some level of interoperability and standard supports will be key for this to take off in any meaningful way.”
Good! Single vendor solutions are generally not good in the long run, in general. That’s why patents expire, btw. Multi-vendor solutions over an acceptable standard provide competition for the consumer which gives them more innovation and just as importantly…recourse in the event they’re dissatisfied.
I don’t think single vendor solutions are intrinsically “not good” in the long run. Conversely, I never want there to be only single vendor solutions or a single vendor solution. I am a firm believer in competition. I’m already looking for Nest alternatives. Nest has certainly caused other vendors to up their game. If Googlest does that, great. I’ll still replace my Nest, but hopefully competition makes it at least a sideways step if not a step up.
Joe
From a purchasing point of view, multiple sources are a good thing. That way you’re not beholden to a single seller. As with everything in life (unfortunately) one needs an exit strategy. Please take my comment in that spirit.
I think I understand. Multiple sources can be of benefit, but it can also complicate things. Each approach has its advantages and disadvantages to the customer. But, yes, always have an exit strategy and always understand the implications of your choice. Sometimes I pay more from a single vendor, but I don’t have to juggle multiple vendors. Also, sometimes utilizing a single source builds a relationship that can present other advantages that going to multiple sources never open up.
But sometimes that single source can take the relationship for granted and quality and service slip. As you say, always have an exit strategy.
That’s just my experience. YEMV.
Joe
Also, not everyone does things, every aspect, best. Someone might have the best thermostat, but other’s may have better lighting controls, or others better surveillance cameras. Your choice, ideally, should allow you to mix and match if you choose.
Of course, that’s only possible if everyone follows interoperable standards at a minimum level. One could still “value add” over and above those standards.
And at this point (speaking of exit strategies), Nest may well be the best, even as it did not integrate with my current home automation system, they pretty much lost me as a customer with the Google purchase. At this point, best thermostat has less importance to me. now I want “best” from a different perspective (Best is always relative).
Joe
A perfectly valid position.
With Guy Kawasaki at Motorola, I wonder how much of a role he played in encouraging this purchase for Google.
Joe
If it is indeed the case that Apple is well along the line on home automation, maybe Nest saw the writing on the wall and decided now was a good time to take Google’s billions.
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