Google might fold Nest Back into the Devices Team
Google is considering folding its home-automation unit Nest Labs into its hardware team, according to people familiar with the talks, reversing a major element of Google’s split two years ago into various businesses under holding company Alphabet.
- At the time of the spin off in 2015, CEO Larry Page said in a public letter that “the whole point is that Alphabet companies should have independence and develop their own brands.” The reality however, is that the rest of the market sees Nest as a Google company leaving no benefits to be had from the separation.
- At the recent launch event Google had in San Francisco, newly launched Nest products where showcased next to the new Google products making it easier to see why this move makes a lot of sense.
- Connected home has probably developed faster than Google had anticipated back in 2015 and so has the lead that Amazon has in this market. To be successful, Google must bridge users from the phone to other devices within the home and that can be better achieved if the experience across devices is “owned” by the same team.
- The concern with any reorg is always that people might leave and I surely hope that talent is retained.
- Also, it had taken Nest a long time to come out with the set of devices they just launched and Google must assure that first the devices hit the market as planned and second that the pace of innovation and time to market accelerates.
Google Cloud appoints Diane Bryant as new COO
This week Google Cloud announced that Diane Bryant joined Google Cloud as their COO. Bryant was head of Intel’s Data Center Group, which generated $17 billion in revenue in 2016. Over her five years as Group President, Bryant expanded the business to additionally focus on pervasive cloud computing, network virtualization and the adoption of artificial intelligence solutions. Previously, Bryant was Intel’s Corporate Vice President and Chief Information Officer, where she was responsible for corporate-wide information technology solutions and services. Bryant also serves on the board of United Technologies.
- Back in May, Intel announced that Bryant had made the decision to take a leave of absence from the business to tend to a personal family matter for a period of six to eight months. Due to the long absence, Intel did not think that an interim leader would have worked and they appointed Navin Shenoy to take her position of general manager of DCG.
- According to a new SEC filing by Intel, Bryant notified Intel that she will not be returning and planned to retire from the company effective Dec. 1. According to the filing, Intel will have to make a separation payment of $4.5 million to Bryant.
- This is a great hire for Google as Bryant, who is an engineer by trade, has an acute business sense and great people’s skills which will certainly come in handy as Google start to pitch its offering more and more against Amazon.
- Bryant has also been very active in supporting women in tech which is certainly something Google could do with in the aftermath of the infamous “Google memo”.
Alexa For Business
At their big AWS Re:invent in Las Vegas, Amazon announced Alexa for Business offering office workers the ability to use Echo devices to set up meetings, book conference rooms and other basic tasks. Amazon also said to be working with major enterprise software companies, including Concur, WeWork, and Salesforce. Enterprises will also be able to create their own customised skills such as providing directions around a campus.
- Amazon is moving to have Alexa be part of our entire life from our home, to our commute in the car and now in the office.
- The biggest hurdle I see for broad enterprise adoption is security. Like every other device on the network, IT will want to make sure that Echo devices do not become a Trojan horse.
- The second issue I see is that IT does not usually invest in convenience, which is how any Alexa enabled device will be seen. This might change as apps get developed.
- While the cost of the actual device is limited, IT departments might be concerned about the cost of device management and app development.
- An opportunity I do see in the short term is a C-level BYOD trend: managers who might want to get Echo devices for their own office or conference room.
- Some verticals, that have a B2C play, like hospitality, have already starting experimenting with Alexa and of course Alexa for Business will help turn pilots to proper deployments
- While Microsoft should not be concerned right away, I do believe this move by Amazon should put some pressure on them in providing enterprises who want to embrace voice with a secure alternative in Cortana. An alternative that is not limited to office support.
