Google buys back Nest Labs, Alphabet's smart home unit


Google, in recent years, has been focusing more of its resources into creating products for the home, having launched Google Home speakers and the Pixel electronics line.

The product of choice that is now dominating the smart home is smart speakers, with Google and Amazon accounting for 94 percent of the devices in use, according to Strategy Analytics Inc. "Being part of the Google family, we get closer to that". Google is trying grew its own advancements before anybody else does - particularly Amazon.

From the Google's Hardware devision, the company will produce more Pixel phones, Pixelbooks, Smart speakers and more in the future. The company doubled its hardware portfolio last year-selling more devices in 2017 than the previous two years combined. Fawaz said that Nest has shipped around 11 million products since its founding in 2011. However, despite having a new parent company, Nest has primarily operated independently during this time. The e-commerce company has managed to grab the lead by offering affordable AI solutions with the Alexa-Echo combo approach, which Google has to match by packaging Nest products, the Google Home smart devices, and its Google Assistant as the more compelling alternatives. Devices like the Google Home and Nest Cam should be co-developed under the same team, not in separate silos.

Google is bringing back Nest to the forefront of its campaign to make smart homes supported by hardware, software, and services built around artificial intelligence or AI. In November, the Wall Street Journal reported that Google was considering bringing Nest back into Google as a strategy to compete with Amazon's cornering of the smart home market. Founded by former Apple execs, Matt Rogers and Tony Fadell, Nest's inaugural product was its Learning Thermostat.

Nest CEO Marwan Fawaz said that moving Nest to Google is company's right decision because it makes it easier to develop new Nest products using Google's artificial intelligence technologies. It's joining Google, which intends to integrate its technology into Nest products.