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You are here: MacNN Forums > Community > MacNN Lounge > Google buys Nest for $3.2 BILLION!!!

Google buys Nest for $3.2 BILLION!!!
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Jan 13, 2014, 05:53 PM
 
Google acquires Nest's line of home automation products for $3.2 billion, pledges continued support for iOS

That's a lot of thermostats to get that back, they must have plans for it.

"OK Google, it's ****ing cold in here."

"Adjusting temperature to 72 degrees"

It'll be much easier if you just comply.
     
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Jan 13, 2014, 06:25 PM
 
That's a helluva lot of grip to pay for a company that more than likely hasn't even seen a dime of profit yet.

OAW
( Last edited by OAW; Jan 13, 2014 at 07:15 PM. )
     
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Jan 13, 2014, 07:13 PM
 
I'm worried about Google's continued buying of every single company it can get its hands on, especially robots and automation. Doesn't seem right. Kind of innovation by buying and not directly creating the products by themselves. This is especially true for well-known products like Nest and Big Dog.
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Jan 13, 2014, 07:25 PM
 
How much do they have in the bank...?!
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Jan 13, 2014, 07:51 PM
 
Originally Posted by mindwaves View Post
I'm worried about Google's continued buying of every single company it can get its hands on, especially robots and automation. Doesn't seem right. Kind of innovation by buying and not directly creating the products by themselves. This is especially true for well-known products like Nest and Big Dog.
This is Google's catch 22.

Google can show you innovations which will make you shit your pants.

They won't show them to you because, well... they'll make you shit your pants.

Both of the acquisitions you mention aren't about using them as a substitute for innovation. They've already innovated themselves about a decade ahead of what people can handle. These are pieces they want to leverage into (as of yet obscure) shit your pants projects.
     
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Jan 13, 2014, 09:28 PM
 
I just bought two Nest smoke and CO2 alarms. Pretty nifty.

I thought the Android app looked suspiciously nice....
     
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Jan 14, 2014, 05:43 AM
 
I was going to go with the Nest detectors, but since I already have a home automation setup, I can get similar functionality with the First Alert wireless system.
     
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Jan 14, 2014, 07:58 AM
 
It was noted elsewhere that Google was already the investor in Nest through one of its investor programs, so they're partially buying it from themselves.

That pricetag, though...Has to be too much to be an aqui-hire. Speculation is that they have ideas for hardware products and they want people who can make those products happen
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Jan 14, 2014, 01:16 PM
 
Somewhere in the last few years Google really did cross the line into the creepy territory.

They just have their fingers in too many pies now. It's a little much. They are basically poised to control the entire computing landscape of everything, from top to bottom in a world that is becoming more and more reliant on computing from top to bottom.

And they seem to buy new companies every other week.

They're gearing up to make the Microsoft of the 90s look like a mom n pop operation and no one seems to really care or notice.
( Last edited by ort888; Jan 14, 2014 at 05:05 PM. )

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Jan 15, 2014, 09:24 AM
 
It will be interesting to see if they end up overextending themselves and lose focus or if they manage to keep it together.

Right now, I prefer the google ecosystem to Apple's - they've got more things working, and working well. After the disaster of the latest Pages release, we're testing everything from MS Office to google drive and google docs. I never much liked google docs, but they've com a long, long way.
     
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Jan 15, 2014, 10:17 AM
 
What i find interesting is how almost unanimous the reactions are in decrying this move.

Which makes sense, I guess.

It has been said that people invited Nest into their homes, not Google. Nest's interest lay in using data to make a better product. Google's is the exact opposite, and the people already using Nest woke up to find the flag had changed overnight, and that they had had no say in the matter, and that the trust they had in the product had been quite literally misplaced overnight.

This is an issue with every corporate acquisition, I suppose, but it feels different when you have something in your own home collecting data for a different master.
     
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Jan 15, 2014, 11:57 AM
 
Not quite sure what you're saying here...

Google makes shitty product? Google uses your data so they can make shitty product? Nest isn't a company which wants to make money? Nest would never use your data as a way to make money.

Reading your post, it's pretty obvious now why Google bought Nest. They want Nest's marketing department to work their (apparently massively successful) RDF for them.
     
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Jan 15, 2014, 12:41 PM
 
Google has bought Nest because google is interested in all kinds of data.

In this case, data that tells them how much energy people are using to heat and cool their homes, data that tells them how many people have smoke and CO2 detectors installed. Google is interested in data because they are good at making money from it, perhaps via the acquisition or development of an energy company, most likely in the renewable space.

I don't think the product will suffer as a result of this acquisition. Nest's software has been, to put it mildly, terrible. I bought a Nest thermostat for our last office and it was shit*. Random temp changes, refusal to ramp up when requested, random outages, had we not moved we would have replaced it with a traditional model. Nest is hoping to have access to google's software expertise to make a better product, in return google gets to organize more of the world's data.

*Nest's smoke and CO2 alarms, on the other hand, are outstanding.
     
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Jan 15, 2014, 12:57 PM
 
I don't think google is looking at the data Nest is providing now, but rather they are looking at making a big splash into the connected/automated home market, in which Nest is one of the most interesting and successful players.

It's more of a long game.

Google is really starting to give me pause though with all the markets they are entering. If all of their long term plans work out, the tech landscape in a decade will be a nightmare. A nightmare controlled by google in which no one else can compete because they give it all away for "free".

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Jan 15, 2014, 01:09 PM
 
Originally Posted by subego View Post
Not quite sure what you're saying here...

Google makes shitty product? Google uses your data so they can make shitty product? Nest isn't a company which wants to make money? Nest would never use your data as a way to make money.

Reading your post, it's pretty obvious now why Google bought Nest. They want Nest's marketing department to work their (apparently massively successful) RDF for them.
WTF? It's not a new thought, nor a particularly outlandish one:

Some companies collect your data to create a better product.

Google builds products to better collect your data.

That has nothing to do with paranoia, that's the basic business model!

And I think it rather makes sense to base your purchase at least in part upon why it exists, and the privacy track record of the companies involved.

I know, I know...any post mentioning "privacy" is automatically paranoid...
     
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Jan 15, 2014, 01:19 PM
 
You are not mentioning the part where Google gives you the product, and it's pretty decent product.
     
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Jan 15, 2014, 01:21 PM
 
That's because that is not the part that is concerning.

They're also not chucking Molotov cocktails in my kitchen window, nor are they slaughtering people's children. They also have a pretty decent mail service. Sorry I forgot to mention that.
     
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Jan 15, 2014, 01:40 PM
 
You claimed Nest wanted the data to make a better product, and Google does not.

That's what makes (for instance) mail relevant. Google uses your data to create a better mail product. Same with search, maps, groups, buzz...
     
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Jan 15, 2014, 02:10 PM
 
Originally Posted by subego View Post
Not quite sure what you're saying here...

Google makes shitty product? Google uses your data so they can make shitty product? Nest isn't a company which wants to make money? Nest would never use your data as a way to make money.

Reading your post, it's pretty obvious now why Google bought Nest. They want Nest's marketing department to work their (apparently massively successful) RDF for them.
I think he's saying that Google has presumably a bad track record with customer info, which from personal experience I can say is somewhat substantiated. They get real grumpy when you share their product secrets with others, no matter how trivial, but have little concern for yours.
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Jan 15, 2014, 03:23 PM
 
I think another way of putting it is ...

Some companies collect your data to make a better product.

Other companies collect your data because YOU are the product.


Google falls into the latter category. Now don't get me wrong … they are very good at what they do. But the "products" they offer for free are essentially "data collection mechanisms" so they can better sell their true product (i.e. All of us) to advertisers.

OAW
     
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Jan 15, 2014, 03:35 PM
 
Originally Posted by subego View Post
You claimed Nest wanted the data to make a better product, and Google does not.
No I didn't.

I claimed that Nest used data to build good products, and that Google does the exact opposite. Which I meant as: using products to build good data.

I did not say that Google does not build good products. Just that that is not their business aim.
     
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Jan 15, 2014, 03:50 PM
 
Google turns that data back around into making good product, no?
     
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Jan 15, 2014, 03:54 PM
 
For their advertisers, yep.

The users are not at the forefront of their efforts.
     
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Jan 15, 2014, 04:16 PM
 
Chicken and egg argument.

Putting advertisers forefront means generating products compelling enough to pull in a userbase to advertise to.
     
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Jan 15, 2014, 04:58 PM
 
What are you arguing?

Which is to say, you sound like you're really, really trying to disagree with my attempt to explain why people are queasy about this acquisition.

What are you disagreeing with?
     
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Jan 15, 2014, 05:11 PM
 
Perhaps I'm mistaken, but I felt your argument had two prongs.

The first is people are uncomfortable with Google having their data. Totally understand that. I think it's somewhat misguided, but I'm not going to force anyone on the idea who isn't ready for it. So, essentially, we aren't disagreeing about this part, even though we do.

The second is Google won't improve the product like Nest would because they're beholden to different masters. That I disagree-disagree with.

I think it's a myth Google doesn't put users foremost due to their business model, mainly due to:

A) They're geeks, so they don't really understand proper social interaction.
B) They have such a large userbase, they can't scale human customer service to it.
C) Shit Schmidt says (related to A).
     
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Jan 15, 2014, 05:34 PM
 
Originally Posted by subego View Post
Perhaps I'm mistaken, but I felt your argument had two prongs.

The first is people are uncomfortable with Google having their data. Totally understand that. I think it's somewhat misguided, but I'm not going to force anyone on the idea who isn't ready for it. So, essentially, we aren't disagreeing about this part, even though we do.
Fair enough.

The second is Google won't improve the product like Nest would because they're beholden to different masters. That I disagree-disagree with.

I think it's a myth Google doesn't put users foremost due to their business model
I wasn't actually saying that; you were just reading it that way, but:

Recent changes to YouTube, plus the "allow anyone to send me email via Google+" default opt-in are evidence to the contrary.
YouTube is not a product with my interests at heart; it is being redesigned as an engine to populate the Google+ wasteland with content. Their refusal to let me opt out of unifying the accounts for the public (they merely give you a "Remind Me Later" option), combined with their full-name requirement for a Google+ account is really, really grating.
I live with it, because it is free. To a point.

It also seems clear that, yes, they are geeks, and that is precisely WHY their interests are occasionally at odds with making a good product.

Nobody wants Google Glass. It's a geek toy. And Google being Google, odds are that it will either just get canceled two years from now, because they haven't figured out how to make a product anybody actually wants to use, let alone buy.

And the Q. What a wonderful product that waswould have been.
     
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Jan 15, 2014, 08:48 PM
 
Every time somebody claims google+ is a wasteland, a kitten dies.

And to be even more controversial: Right now, in my opinion, google makes some products than are better than Apple's.


PS: Posted from a - gasp - HP Chromebook.
( Last edited by Phileas; Jan 15, 2014 at 10:14 PM. )
     
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Jan 16, 2014, 12:21 AM
 
Google is set to take over the world in everything that we do and that doesn't just apply to web searches anymore.

That involves buying every single company and selling products at a loss or at cost to make up later in ads/selling your privacy.

So, I have been moving away from Google products lately. I use Bing for my Mac and iPad (Google for iPhone), and use Yahoo Finance instead of Google Finance now (was former YF users, but was fascinated with live quotes of GF before, but YF now has them, so changed back.

I still use Google Maps because I live overseas and Apple Maps are a joke overseas. I still use gmail because I have just been lazy.
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Jan 16, 2014, 01:38 PM
 
Originally Posted by Spheric Harlot View Post
Fair enough.



I wasn't actually saying that; you were just reading it that way, but:

Recent changes to YouTube, plus the "allow anyone to send me email via Google+" default opt-in are evidence to the contrary.
YouTube is not a product with my interests at heart; it is being redesigned as an engine to populate the Google+ wasteland with content. Their refusal to let me opt out of unifying the accounts for the public (they merely give you a "Remind Me Later" option), combined with their full-name requirement for a Google+ account is really, really grating.
I live with it, because it is free. To a point.

It also seems clear that, yes, they are geeks, and that is precisely WHY their interests are occasionally at odds with making a good product.

Nobody wants Google Glass. It's a geek toy. And Google being Google, odds are that it will either just get canceled two years from now, because they haven't figured out how to make a product anybody actually wants to use, let alone buy.

And the Q. What a wonderful product that waswould have been.
There's a difference between not making a good product because you're socially retarded, and not making good product because you're sucking advertiser dick.

That was one of your points, right? Google's problem is sucking advertiser dick instead of consumer dick?

This thread needs moar dick!

Dick! Dick! Dick!
     
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Jan 16, 2014, 02:33 PM
 
If the current Motorola offering is any indication of future trends, then they're on the road to making beautiful, well engineered and reasonably priced products.
     
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Jan 16, 2014, 03:09 PM
 
I think there's no question though Google couldn't have done that without Moto. Google would have designed the phone with an algorithm.

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Jan 16, 2014, 04:28 PM
 
Moto used to make shit phones, until googol came along.
     
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Jan 16, 2014, 04:33 PM
 
Moto ****ed themselves over by spamming the hot phones (and at the time they were ****ing hot) until they became free. In the end they only had the juice to make shit phones.

Getting cut from the Apple tree didn't exactly help, either.
     
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Jan 16, 2014, 07:37 PM
 
I don't know - - I played with pretty much every single Moto phone that was ever made (I used to work in tech marketing at the time) and I hated every single one of them.

"Hello Moto"
     
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Jan 16, 2014, 09:32 PM
 
If you're talking Hello Moto, that's after the time period I'm thinking of.

I'm talking about first StarTac to when they released the RAZR.

If you hated those phones, that's an anti-clamshell issue, not a Moto issue.
     
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Jan 17, 2014, 03:51 AM
 
Wasn't the RAZR the foldable one that had that atrocious keyboard? I really, really hated the feel of that. The first Startac was awesome, though the epitome of yuppie.
     
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Jan 17, 2014, 06:50 AM
 
Another google project has popped up today - a smart contact lens to monitor glucose levels in diabetic people. Developments of it will have LED notification lights in it, and probably talk to an android app to monitor the levels. Google's new wearable project is a smart contact lens with medical uses

This is the good, helpful non 'Skynet' Google. I like this Google. Not too sure about the Google that buys military robot and home automation companies though.

It'll be much easier if you just comply.
     
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Jan 17, 2014, 08:02 PM
 
     
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Jan 17, 2014, 09:34 PM
 
It's not a product. Not even close.

This is a project in google's X Lab. And it's not even an original google idea, it originated two years ago in Microsoft's Natural User Interface group. One of the lead scientists working on that project has since moved to google, taking his own passion project with him.

What makes the X Lab team special is their ability to work on crazy concept just to see what happens next. They have put balloons in the air to bring Internet access to remote locations, they have put intelligent computers in vehicles to drive themselves, and they are the driving force behind Google Glass.

So before everybody gets their knickers in a twist about google not understanding people or, despite working with doctors and specialists and clinical experts, somehow managing to forget the reality of what is is like to live with diabetes, look at this as what it is.

A research project. A look at what's possible, even it it currently looks impossible, or in the case of Google Glass, just plain silly. Because that, trying, failing, exploring, pushes things forward. It's called progress. By the time it hits the market, if ever, it will be a product that has undergone trials. That doesn't irritate eyes. That might not work for all, but might help some. To assume anything else would just be plain silly.

Like Apple said so well: "Here's to the crazy ones."

PS: Informative and balanced engadget article: http://www.engadget.com/2014/01/17/g...tes/#continued
( Last edited by Phileas; Jan 17, 2014 at 09:50 PM. )
     
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Jan 18, 2014, 12:52 AM
 
Hitbait. Linkbait crossed with hit-piece. I expect better from Om.
     
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Jan 18, 2014, 05:20 AM
 
Re: YouTube changes

I'm not saying it was necessarily the best plan, but YouTube comments needed to be ****ing dealt with.
     
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Jan 18, 2014, 09:45 AM
 
THAT I can agree with.
     
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Jan 18, 2014, 10:00 AM
 
Truth.YouTube comments tend to be the lowest of the lowest.
     
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Jan 18, 2014, 05:46 PM
 
Originally Posted by Spheric Harlot View Post
THAT I can agree with.
Well, that's sort of my point. They finally try to tape up the ass-end of the Internet, and all it gets them is accusations of spamming G+ and not having the user's interests at heart. They just can't win.

There are plenty of things to take Google to task for, but I can't help but notice they get treated unfairly much of the time.
     
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Jan 18, 2014, 06:23 PM
 
Originally Posted by subego View Post
Well, that's sort of my point. They finally try to tape up the ass-end of the Internet, and all it gets them is accusations of spamming G+ and not having the user's interests at heart. They just can't win.

There are plenty of things to take Google to task for, but I can't help but notice they get treated unfairly much of the time.
That's the ONE aspect that's an improvement. I've mentioned several other angles in this thread that are not.

Again: I love Google for how respectfully they haven't broken into a middle school with a crowbar and slashed a dozen kid's throats. They also pay their taxes as legally required. That's totally awesome and benign of them, and I think it's totally unfair that this isn't constantly mentioned in the press, which is obviously biased against them for various unfair reasons.
     
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Jan 19, 2014, 02:26 AM
 
Not really sure you've demonstrated the Goog being treated fairly.
     
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Jan 19, 2014, 04:40 AM
 
I'm not obligated to, just to make a point.
     
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Jan 19, 2014, 12:33 PM
 
Once you have a gmail account. They own you.
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Jan 19, 2014, 02:05 PM
 
Originally Posted by Spheric Harlot View Post
I'm not obligated to, just to make a point.
Your obligation to be fair only goes as far as your desire for people to think your point is fair.

Slamming Google for how they've redone YouTube comments, without even touching on how vile and corrosive the environment was before the change, weakens your point.
     
 
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