Saturday, January 18, 2014

How to get 3.2 billion USD for Thermostat firm?

As you might already known Google acquisition of Nest - Thermostat firm is in news, the price of acquisition is 3.2 billions USD (so huge) .


  • This is huge money for four year old start-up firm with three products (Thermostat, Smoke Detector, CO2 detector)
  • Nest makes a thermostat and a smoke-and-carbon-monoxide monitor that can be controlled via Wi-Fi from a smartphone, and that can re-program themselves based on people's behavior pattern.  For initially few weeks, you need adjust the settings, after that device takes care of it.
  • google-acq-nest_400_266_80
    Learning Thermostat, and also programmable
  • The Nest thermostat already had the ability to link over Wi-Fi to another Nest thermostat in the same house to pool their data on when people adjusted the temperature and when activity was detected by the devices’ short- and long-range motion sensors. The Nest Protect has its own motion and light sensors that can feed data to a Nest thermostat nearby. In a home with multiple Nest smoke detectors, the company’s devices could get a very detailed picture of the inhabitants’ movements.
Nestor Inc's stock has surged as investors confuse it with Nest Labs
Intelligent Smoke detector

Second Largest acquisition

  • Fact is that Nest is second largest acquisition after Motorola

Co-founders ( Ex Apple)

  • Google’s CEO Larry page said  “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. They’re already delivering amazing products you can buy right now–thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams!”
  • Co-founders are ex apple. 
    • Tony is Iphone, Ipod guru, extensively worked with Steve Jobs on both products
    • Rogers from Apple too
    • Nest founders Matt Rogers (left) and Tony Fadell (right) with Google CEO Larry Page (center).Image Credit: Nest

Technology Innovation:

  • Like Steve jobs , they have run this firm like Apple ( 300 people firm), most of them are from Apple only
  • They have added technology into normal thermostat. The thermostat is learning one, which records and syncs with other devices at home. Also so as "smoke detector", which co-ordinates with other device and provide early warnings, and can be shut-off simple wave of hand.
  • Specifications
    • Sitara AM37x ARM Cortex-A8 that can run Linux, Android, and Windows Embedded CE
    • PowerVR core, OpenGL ES 2.0 is also supported. 
    • a ZigBee SoC that’s seemingly currently unused, lending to a theory that Nest has other devices in the works and will use ZigBee for wireless connectivity.
    • Inside-out

What Google will get

  • Entry into Home automation space, and can learn the pattern and control the industry
  • 1% of home automation in thermostat business
  • Two co-founders
  • 300 people team
  • Google's latest acquisition is a huge bet on the Internet of Things, a new tech paradigm that aims to embed daily life objects -- from TVs to thermostats -- with the ability to stay connected to the Internet via connectivity sensors.

Last stop

 Google Nest? No Thanks, Say Users

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