Nest’s time at Alphabet: A virtually unlimited budget with no results

Ron Amadeo, writing for Ars Technica:

It’s hard to argue with the decision to “transition” Fadell away from Nest. When Google bought Nest in January 2014, the expectation was that a big infusion of Google’s resources and money would supercharge Nest. Nest grew from 280 employees around the time of the Google acquisition to 1200 employees today. In Nest’s first year as “a Google company,” it used Google’s resources to acquire webcam maker Dropcam for $555 million, and it paid an unknown amount for the smart home hub company Revolv. Duffy said Nest was given a “virtually unlimited budget” inside Alphabet. Nest eventually transitioned to an Alphabet company, just like Google.

In return for all this investment, Nest delivered very little. The Nest Learning Thermostat and Nest Protect smoke detector both existed before the Google acquisition, and both received minor upgrades under Google’s (and later Alphabet’s) wing. A year after buying Dropcam, Nest released the Nest Cam, which was basically a rebranded Dropcam. Two-and-a-half years under Google/Alphabet, a quadrupling of the employee headcount, and half-a-billion dollars in acquisitions yielded minor yearly updates and a rebranded device. That’s all.

Say what you will about Tony Fadell’s leadership style, I don’t see how anyone could deny that Nest has nothing to show for its time as an Alphabet subsidiary.

Nest is still the same thermostat / smoke detector company they were before Google bought them, and they still have the same products they had before their purchase, and nothing new to show for it since then.

Source: http://arstechnica.com/gadgets/2016/06/nests-time-at-alphabet-a-virtually-unlimited-budget-with-no-results/

Roger Stringer spends most of his time solving problems for people, and otherwise occupying himself with being a dad, cooking, speaking, learning, writing, reading, and the overall pursuit of life. He lives in Penticton, British Columbia, Canada