Tag Archives: Nest

Some thoughts on what Google has bought Nest for

Some smart points about Google’s acquisition of Nest from John Gruber, who notes that in Tony Fadell Google has got someone who knows how to do hardware capable of scaling to tens of millions of units.

However, one minor point about John’s story, from this paragraph:

One of Alan Kay’s numerous oft-cited quotations is, “People who are really serious about software should partner with an OEM in Asia.” No, wait, that’s not what he said. What he said is, “People who are really serious about software should make their own hardware.” That’s never been true of Google, putting aside Motorola (which they seemingly acquired more for its patent portfolio than for its phone hardware acumen) and the niche Google Search Appliance.

In fact, Google has independently designed two pieces of hardware: The Chromebook Pixel and Nexus Q. But that, I think, makes John’s point stronger. Both the Pixel and Q were expensive, high-end pieces of hardware which could never have scaled to selling tens of millions of units. The Pixel was (and is) effectively a flagship demonstrator the potential for Chromebooks; and the Nexus Q was a unique media device which, because of its design, cost about four times as much as its competition.

With the Pixel and Q, Google proved it could design high-end hardware on its own. What it hasn’t been able to do is create high-quality hardware capable of being mass produced at low cost. Of all the tech hardware companies, only Apple and Nest have really nailed that one. And Apple wasn’t available for sale.

Apple “not in the bidding” for Nest

Liz Gannes, for Re/Code:

Nest had been close to completing a funding round of upward of $150 million that would have valued it at more than $2 billion, Re/codereported earlier this month. That round never closed, because Google swept in with its huge offer. Sources familiar with details of the acquisition said that Google was the only serious bidder and Apple was not in the mix.

I get the feeling from the extremely sarcastic comments on Twitter that Google just pushed themselves way beyond the creepy line. Being on your phone gathering data is one thing: being in your home gathering data is quite another.