Tuesday, January 14, 2014

Why Google launches into the connected home - The Tribune.fr

By acquiring

words for $ 3.2 billion Nest, a startup that develops smart thermostats, the Internet giant a foothold in a promising market is a growth engine for Android and gives access to a wealth of data consumption. Decryption.

Google please, take me back to the house and heating . “From science fiction? Not sure! Between the car connected and synced with Android, Google’s smart glasses Glass voice control tablet and smartphone Google, the Internet giant gradually weaves its web far beyond the Web and more in the physical world . By paying $ 3.2 billion cash offer to the California startup Nest which manufactures smart thermostats, making it the second largest acquisition in its history, after Motorola, before YouTube or DoubleClick, the Mountain View company proves the seriousness of its ambitions in trendy connected objects and home “smart. “While strengthening its historical business, targeted advertising.


revolution of connected objects, beautiful and intelligent at the same time

first solutions “home automation” back to the 1980s, but remained confined to a niche segment of the electronics, primarily alarm systems. Renamed under the term broader derived from English, “smart home”, this market is just beginning to take off thanks to the widespread use of smartphones and tablets that allow remote control from a simple and intuitive mobile application. But this growth through the object itself (the “hardware”), rather than the solution and the system (software): indeed, it is usually necessary to replace an old unit (thermostat, weather station, fire alarm, counter, etc..) with one that is communicating, careful design to make people want (to buy and show in her living room) and justify a higher price. Nest founder Tony Fadell, one of the fathers of the iPod, explained the denier months LeWeb his dream of changing the world by reinventing all these everyday objects, unloved but necessary. He also stressed the need for marketing and distribution of a “disruptive “, that is to say, out of the drugstore shelves and DIY investing and electronics stores. Backed by Google, the Nest brand will be able to accelerate its international expansion, with more financial, logistical and legal also to counter the patent infringement lawsuit (Honeywell attacked her).


At the post-PC era, the material takes its revenge on software

buying Nest, Google acquired a reputed team, consisting especially of former Apple (in total more than 270 people), with the know-how “hardware” and design. It also offers a beachhead in this promising market for connected home. The firm Juniper Research estimates that $ 60 billion the size of the ecosystem “smart home” in the world in 2017. More cautious, the firm Berg Insight, which restricts the scope for controllable systems from the web or mobile, predicts that this market will grow more around 13 to 15 billion in 2017, most of which would be realized in North America, region that would be three years ahead in terms of adoption in Europe. That said, many European companies, including French, are positioned in this market, Schneider, Legrand or Technicolor, to startups such as Netatmo and Withings recently winning in Las Vegas World Lounge consumer electronics (CES) . The size of this market, however, remains low by $ 50 billion in annual sales made by Google in online advertising mainly.

Paradoxically, the post-PC era, the material takes its revenge on the software: if a manufacturer of “hardware”, smartphone, tablet, etc., is doomed to be marginalized without a good operating system and variety of applications, such as the examples of Nokia and BlackBerry, conversely, the software is not everything and tends to trivialize. Differentiation through the apparatus. The “software” is essential but not sufficient. Google has bought Motorola high price ($ 12.5 billion), not only for its patents, and Microsoft has developed its own tablet surface before offer Nokia. The design is also a weak point of Google products, its key Chromecast, used to play multimedia content on the TV, unattractive, Glass glasses with little flattering. The firm also invests Larry Page with a vengeance in robotics. All these initiatives show that Google is determined not to miss the next revolution “hardware”, whether computer to wear (“wearable”) or other connected objects.


Relais growth of the Android ecosystem

Google had already revealed his ambitions for the connected home in 2011 announcing the Android @ Home project open to developers, clearly intended to make the OS (operating system) for Android mobile “ the operating system your house “as if” home was an accessory connected network. “But so far no concrete development. In 2011, Google had also put an end to an unsuccessful attempt, PowerMeter, a software tool (without housing) to measure its energy consumption had not taken. Today, Android has already won everything in smartphones, a market that is slowing it dominates more than 80%, and looks set to do the same in tablets, Apple confining a large high end niche : he must find other areas of development, under penalty of being replaced by a competitor. For example the car: Google has launched with major manufacturers’ open automobile alliance “to integrate Android into vehicles

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house is another natural extension. After the failure of Google TV (or decoder system embedded in the TV connected), it is now renamed Android TV, the Internet giant is looking at other ways to win the heart of the show. The Nest thermostat is designed on a Linux kernel and is compatible with the iPhone, but it could easily migrate to Android. Google could then develop a set of tools, a dashboard used to control various household objects communicating (lock connected, oven, washing machine, etc). Which could allow Android to become the standard, interoperable system because of the “smart home”, forcing manufacturers all directions to rally to his universe. That said, Android is free, no licensing fees, growth does not relate directly to Google. The search engine is remunerated by commissions on the app store Google Play or especially advertising – about 20% of its advertising revenues come from mobile and tablets but not only Android users

valuable consumer data for advertising

Google, which has built its success on the use of data and targeted advertising, is believed to buy Nest in order to make off with a lot of information followed by the thermostat or Protect the detector fire (and present) through their sensors: the comings and goings in a home or in a room, but also the consumption data which, even anonymous, could be valuable and monetizable. The announcement of the acquisition of Nest has also been greeted immediately on social networks by very hostile reactions concerned users. The founder of Nest told Reuters that maintaining the privacy policy was a topic discussed at length with Google. The data will only be used to improve the product, provides startup. At least until a possible update this policy. Some think it might be strongly encouraged to register with your Gmail account or Google+ profile to receive alerts by direct example. The goal for Google is not wasting a minute of attention of the user, to invite in all the everyday moments where the consumer is not at his computer screen or another, to seek as contextualized with advertisements, why not a voucher in a windows installer or a promotion for a trip to the sun if you go heating

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