Google uses Nest as a middleman to buy Dropcam


Google has been on a buying-spree lately. It feels as if the company is a nouveau riche lottery winner with money just burning a hole in its pocket. I guess in some ways, the company did win the lottery and its users' information is the winnings. You see, the search-giant earns a lot of money from advertisements and harvesting user info, but to continue that success, it cannot rest on its laurels.

With the acquisition of Nest, Google obtained an ability to earn money from hardware and home services, expanding on its existing business focus. However, while Nest represents an expansion, it also represents "business as usual", as the search-giant can eventually utilize home-automation for advertising and harvesting data too. Today, Google buys a company called Dropcam, which offers cloud-based home video monitoring. Clearly, Google wants to be in our homes, but will you put out the welcome mat?

"Although this was a big decision for us, it wasn’t a difficult one to make. Before deciding to extend an offer to Dropcam, we spent a lot of time looking at camera companies and technologies around the world. And I can say without a doubt, Dropcam has the best products, services, and customer experience in the business", says Matt Rogers, Nest founder.

Rogers further explains, "eventually, the plan is for us to work together to reinvent products that will help shape the future of the conscious home and bring our shared vision to more and more people around the world. For now though, not much will change. Dropcam products will still be sold online and in stores. And Dropcam customers will still continue to use their Dropcam accounts".

So Google bought Nest and now Nest buys Dropcam. In simpler terms, Google bought Dropcam. While I am sure the newly-aquired company's products are great, I question why Google is unable to just design similar products on its own. Maybe I am missing something, but a cloud-connected webcam does not seem to be a very unique business. Quite frankly, the same can be said for the Nest acquisition. Hopefully this will not go up in smoke.

Did Google make a smart purchase? Will you trust Dropcam products in your home? Tell me in the comments.

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