“Google likes to know everything they can about us, so I suppose devices that are monitoring what’s going on in our homes is another excellent way for them to gather that information,” said Danny Sullivan, a longtime Google analyst and a founding editor of Search Engine Land. “The more they’re tied into our everyday life, the more they feel they can deliver products we’ll like and ads.”
Nest’s backers include Kleiner Perkins Caufield & Byers (KPCB), Google Ventures, Shasta Ventures, Lightspeed Venture Partners, Generation Investment Management LLP (Chairman Al Gore), Intertrust, and Venrock. It raised a first round in May 2010, and an $80 million round in January 2013, according to DJX VentureSource. In May 2011, Google Ventures led Series B round of financing and in 2012, Series C, according to Tony Fadell in his blog. According to Reuters, KPCB made a return of 20 times on the $20 million it has put in over the years, for a return of around $400 million. Shasta Ventures, which invested at the same time as KPCB stands to make a similar rate of return on its investment...
What can Nest Protect: Smoke + Carbon Monoxide Alarm do for my home? It quiets down when you wave - no more swinging towels or brooms - and sends a message to your phone if the alarm goes off or the batteries run low. Instead of just chirping and howling at you, Nest Protect speaks with a human voice. It gives you a friendly Heads-Up before burning toast turns into an emergency, and tells you which room the smoke or CO is. Low-battery chirps ever rattle your dreams, Nightly Promise shows you its sensors and batteries are working before you doze off.
How much it costs?
The Nest thermostat costs $249 and the smoke detector is priced at $129
Where to buy?
Home Depot, Lowe's, BestBuy, Amazon, Apple Store
Nest says that in 2014 the Nest Protect will integrate with wired security systems. This is not just a hardware play, though: this also sets up Nest as the single app that can act as a hub to run all your connected home devices. Though Nest is the first company that has created an end-to-end smart thermostat service, which offers the software, a gadget and a data-filled website, it also has to watch the competition in the the smart thermostat market from the likes of Opower, Honeywell, Radio Thermostat Company of America, EnergyHub, and EcoFactor, and other home automation companies such as Smart Home Automation VA.
Another interesting aspect is that Nest did all of the hosting of its solution on Amazon Web Services (AWS) and it will be interesting to see how quickly Google can put all this on Compute Engine, its public cloud. Nest, along with Snapchat, which already runs on Google, would be among its marquee customers.
Nest’s key technologies were described by Mr. Fadell in an interview in November 2013 as “communications, algorithms, sensors and user experience, running over a network to the cloud” and as such, it is just the beginning of a disruption in the home automation market.
What's in it for the market?
Though home automation is certainly in the lime light today; I believe that the next wave will be in the commercial and Industrial automation markets for office complexes, educational institutions, shopping malls, industrial warehouses, retail distribution centers, and factories in the next decade...An interesting space to watch and witness how Nest Labs Inc. could give a tough competition to the leading incumbent such as Honeywell or or it could act as an awakening call to the incumbents to assess how they transform their products, services, and solutions to position themselves for success in the Internet of Everything (IoE) Economy!!!
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Google's Motorola business is comprised of two operating segments. The Mobile segment is focused on mobile wireless devices and related products and services. The Home segment is focused on technologies and devices that provide video entertainment services to consumers by enabling subscribers to access a variety of interactive digital television services.