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 (so huge) .

Products

  • 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
Nestor Inc's stock has surged as investors confuse it with Nest Labs
Intelligent Smoke detector
  • 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.

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

Hope you like this, please feedback.

One thought on “How to get 3.2 billion USD for Thermostat firm?

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