Alphabet to merge Nest smart home business with Google

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Nest, which makes smart thermostats, security cameras, and smoke detectors, is now part of Google's hardware division, which makes devices like the Google Home speakers and Pixel smartphones.

Google has officially announced this via a blog post by saying that Nest is finally joining Google's hardware team. With Nest under its wing, Google will have an easier time incorporating Google Assistant into Nest's products, cornering an untapped portion of the market for voice-assisted smart devices.

In an interview with CNET, Osterloh says that the move represented a major part of Google's smart home strategy.

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Nest, which has been operating independently from Google for the past two years, will no longer exist as a separate unit under Alphabet's "other bets" group of projects. Fadell stepped down as Nest's CEO a few months later. Now the company, which Nest CEO Marwan Fawaz claims has shipped over 11 million devices to date, is being brought back into Google, and that means Google is about to get a lot more intimate with your home. "The success Amazon Echo had in the United States over the holidays and at CES likely also had to do something with this move".

However, Nest products are somewhat pricey compared to Amazon's loss-leader approach to hardware, which has proved so successful in attracting customers to its Fire range of tablets and the Alexa home speaker.

What Google can contribute of course is its software prowess, particularly integration with Google Assistant. "Google other revenues" generated $14.3 billion in 2017, up 42% from 2016. As per the reports from Android Police, a new Google Feed button has been added to the search bar on the home screen. Nest will also remain in its current location in Palo Alto rather than making the move to the Googleplex in Mountain View. Nest, known for it's slick thermostats and user-friendly security cameras, was acquired by Alphabet (then called Google) for $US3.2 billion ($4.1 billion) in 2014. Unlike many online publications, we don't have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.

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