Why Nest Labs Could Boost Google: Hardware
When it comes to software design and infrastructure, Google is one of the world’s best operators. But when it comes to hardware, the company is a laggard. Just look at the lackluster results from the Motorola deal. And it looks like Google Glass is not getting much traction either.
With the purchase of Nest Labs, Google gets a much-needed boost of hardware DNA.
But this is also just one piece of the dealmaking. As you can see with this chart, Google has been aggressive with mergers and acquisitions for hardware-type companies lately, including those that focus on robotics, gesture recognition and computer vision.
At the same, Google has also been focusing on internal development for initiative like driverless cars, laptops and television devices. A gadget like the Nest thermostat just pushes Google even further in that direction.