The $3.2 billion (€2.34 billion) price that Google agreed to pay for Nest may sound like a lot of money, but when we’re talking about a company as big as Google, perspective changes.
The question most people are asking right now is why Google would buy this company that, at first sight, has nothing to do with what the Internet giant does on an everyday basis.
That’s not exactly true, however. Google may have started as an Internet company, but it has evolved into so much more.
It handles online tools, such as Gmail, Google+ and the search engine, it owns Android, the operating system for smartphones, tablets and other mobile devices, it offers Chrome OS and the Chrome web browser, it built Google Glass, the wearable tech device and it’s been working for years on driverless cars.
Furthermore, Google seeks to bring Internet to remote locations, delves in robotics and generally expands its areas of interest.
So, acquiring Nest actually fits into what Larry Page has planned for Google – a company that uses complex technologies and offers simple solutions that make your life easier.
Of course, Google might not always be the one to actually develop said technologies, but it has deep enough pockets that it can easily buy them and integrate them into their own ecosystem.
Furthermore, the Internet of Things, a term that refers to the concept of connecting all objects and people in daily life to the Internet, is only just starting to evolve into its full potential.
Google’s acquisition of Nest is just another clue that the company is serious about its dreams to be one of the main players to help connect everyone and everything to the Internet.
Studies indicate that the Internet of Things market will explode in the years to come, so making an investment right now could be the best idea.