Google Bets On Internet Of Things And Connected Home, Not Just Data From Our Nest

Frank Gillett

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.

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LeWeb 2012 Preview: The Internet Of Things, The Always Addressable Consumer, And Privacy Concerns

Thomas Husson

It's that time of year again: Tomorrow, venture capitalists, entrepreneurs looking to raise funds, journalists, bloggers, geeks, and digital executives from all over the world will be gathering at LeWeb in Paris. For a couple of days, Paris will turn into the digital Mecca.

A lot of the media and investor attention will focus on the now-traditional startup competition, looking for the new Evernote, Instagram, Nest, or Withings. Here’s the list of the 16 semi-finalists. Emblematic of the entrepreneurial spirit of the conference, David Marcus, founder of startups like Punchd (acquired by Google) and Zong (acquired by eBay) and now CEO of PayPal, will be speaking at the event and will cross paths with a long list of digital visionaries and key executives, such as Pascal Cagni, former general manager and VP of Apple EMEA.

Here are some of my observations on this year's theme — The Internet of Things — as well as a summary of some of Forrester’s latest research on this quickly evolving space.

 

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