Google’s Nest acquisition for $3.2 billion in cash

nest-google-careersGoogle bought Nest, a smart home device maker, for $3.2 billion in a deal that’s strategically important because it fills a gap in the company’s Internet of things strategy and adds hardware design knowhow. However, Google‘s Nest acquisition will only look strategically sound if certain conditions line up.

Google has to connect these things to its cloud and ecosystem. Google is now connected to more cars, robots, smart devices and wearables than ever before. Toss in Nest and Google has an entry into the smart home. Appliances may not be too far behind. The challenge for Google will be integrating these Internet of things outposts and creating an experience that will actually matter. Google operates in silos in many respects so creating an integrated experience will be a challenge.

A halo effect should happen. Nest is likely to work a lot better on Android going forward and as Google connects the dots it should see some kind of halo effect for Android, its devices and of course advertising revenue streams. Google and its services can be deadly to Apple assuming the company can get its hardware approach down. Read more on Nest…

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