In recent news, Google announced that it is positioned to acquire the home technology company Nest for $3.2 billion. Nest is a company that produces home infrastructure that enables consumers to control thermostats and smoke alarms remotely through their smartphones.
The plan as Google has presented it is for the company to create a home that’s connected, so objects and appliances can communicate with one another and adjust themselves based on the patterns set, and to some extent monitored, by the resident’s behavior.
While many speculate about where this ultimately could lead, several theories have emerged as to why Google made the move.
Google primarily earns revenue through connecting sellers and buyers. With the acquisition of Nest, the company may increase the access it has to markets for natural gas, electricity, and the array of home appliances that use either form of energy.
Through targeted advertising for the companies that operate in these markets, Nest data could become extremely valuable to Google. Google might use the technology to perform cheap audits on people’s home-energy usage and develop suggestions to increase energy efficiency.
The search giant could also sell a more efficient way of controlling home energy usage.
Google Ventures has invested in more than 200 companies and spends about 30 times the company’s revenue. Whatever the firm’s method may be for analyzing and estimating worth, it’s apparently been highly effective.
Google has to be looking ahead when it chooses to make these acquisitions, so the company can turn its investments into ventures that change the world.
Google and the clean-tech revolution
Google is seeking to be on the forefront of the clean-energy revolution by saving power and money, and by becoming more environmentally sensitive as well as user-friendly. The corporation hopes to become a game changer in the energy industry by creating solutions that move the United States away from its dependence on non-renewable natural resources.
Design an important key
Nest was founded by former Apple engineers, who approached their new venture with an understanding of the pivotal role that aesthetics should play in the design element of the product. Rather than treating the design as an additional detail, or added bonus, they see it more as a critical component of the overall experience.
This is another facet of the company that Google regarded as a scalable advantage that will enable it to come out ahead of the other players in the field. In contrast to all the other firms involved in clean tech, Google decided that Nest was the most aesthetically pleasing.
While there’s no way to predict exactly how the acquisition will play out for consumers and investors, we can be sure that Google has a serious plan. The purchase of Nest may well put Google ahead of other eco-friendly tech firms.
Monetization of data, a lucrative investment, and a swift transformation into a major player in the clean-tech movement are all likely motivations behind Google’s decision. While no one can say what may come of it, we know one thing for certain: the future is coming.