We are now only a few weeks away from Mobile World Congress, historically the pre-eminent event of the mobile industry and now one of the largest global events across all industries. Last year’s even attracted almost 90,000 attendees from over 200 countries. The event draws representatives from mobile operators, device manufacturers, technology providers, vendors, content owners and governments from across the world. Executives from all industries pay attention to products demonstrated and announcements made. While “mobile” remains in the event title, last year’s event marked a changing of the guard: The large presence of car manufacturers and the buzz around Facebook reflected that shift away from the event’s telecom roots. This year that shift will be even more pronounced as the reign of mobility gives way to the new rule of connectivity. Yes, we are mobile but the key is that while we are roaming the halls at work or the streets of a foreign city, we remain connected to the people and things we want and need to interact with.
Google’s acquisition of Nest has stirred a lot of interest and reaction, some of it misguided. After talking to lots of reporters, here are ten quick thoughts on why Google bought Nest and what it means:
1. Google bought Nest for talent and strategic perspective, not products or data. Nest is too small and not scaling fast enough to justify the acquisition. This is about getting a great team that can teach Google about a new market realm, how the Internet of Things comes into the Connected Home.
2. The price is ridiculously high – unless Google gets a huge head start on Connected Home. Google’s acquisition of Waze for $1 billion and Nest for $3.2 billion look pricey – but they are strategic bets for the long run, and can’t easily be compared.
3. Building the next generation of Google Now is the goal, not snooping on our temps, room locations and smoke alarms. The Nest Labs team will help fuel development of the next generation of Google Now as it shifts more toward proactive assistance and advice.
4. Google’s aim is to get an early start on identifying and adding software interfaces (APIs) to Gmail/Google Drive that connect it to smart products. This is not about Android in the home or about a battle for the device OS – it’s a battle for whose cloud service platform will coordinate an individual’s smart products – and their digital self.
5. Identity, privacy, and security will also crucial in building out the Connected Home. Blanket privacy policies won’t be enough. Fatemeh Khatibloo’s research on contextual privacy shows the new way that privacy and identity will have to be managed.