Google OnHub: GOOG Is Now in the Wi-Fi Router Business

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It’s not quite on the same scale as last week’s Alphabet move, but Google (GOOG,GOOGL) caught more than a few people off guard today when it announced OnHub, a new Wi-Fi router.

OnHub, new Google router

Apparently, Google isn’t just interested in delivering the Internet to peoples’ doors — via Google Fiber or Project Loon balloons — the company has now moved to the next demarkation: the hardware that powers home Wi-Fi networks.

Actually, the move makes a lot of sense and steals a page from Apple’s (AAPL) approach to these things. Apple has been selling its Airport Wi-Fi routers since 1999, and the combination of appealing design and simplified interface has made them a favorite among those who own Macs, iPhones, iPads and Apple TVs.

By offering relatively high-performance routers, Apple has also helped to make the Wi-Fi experience for many of these customers better — something that becomes a selling point for all Apple gear.

Google OnHub is expected to do the same for Google.

There are already hundreds of millions of Android smartphones and tablets that connect to the Internet by Wi-Fi when they’re used in homes. Some of these devices use the relatively new 802.11ac Gigabit Wi-Fi standard, but their speed is effectively hobbled at previous generation rates unless people also replace their old Wi-Fi router.

Many homeowners are reluctant to do upgrade because routers are notoriously arcane to set up and manage. I’ve reviewed a half dozen in the past six months, and I can attest to the fact that everything from adjustment of external antennas to configuring ports in support of online gaming with an Xbox can leave you scratching your head.

Apple’s routers are much simpler to configure and manage, and the OnHub takes things to a new level of simplicity.

The setup and management app uses language like “Everything looks good” in its statuses. If there’s a problem, it actually suggests solutions. The circular interior antenna array takes the guesswork out of manual positioning, and the OnHub even has one antennae dedicated to sensing interference on the network — along with the smarts to adjust wireless settings to address any such problems.

Google has also gained a significant foothold in the living room. The Chromecast relies on a fast and reliable Wi-Fi connection to stream video, so if the OnHub can ensure a home’s Wi-Fi is optimized, it makes the user experience better.

The company is investing in the Internet of Things in a big way as well, and IoT poses real challenges with outdated Wi-Fi routers.

Smart devices like the thermostat, smoke detector and cameras produced by Google’s Nest division rely on Wi-Fi. As more devices fight for a connection on a home’s network, older Wi-Fi routers drop connections and speeds slow to a crawl for everyone. A bad experience like this could turn consumers off the whole smart home thing altogether. OnHub gets a fast, reliable Wi-Fi connection in place, keeps connections up for as many as 128 devices at a time and also supports emerging Smart wireless protocols like Weave.

Google OnHub Key Specs

  • 802.11a/b/g/n/ac Gigabit Wi-Fi
  • Dual band 2.4GHz and 5GHz, each with six antennas in a circular pattern for maximum coverage
  • Dual-core 1.4GHz CPU
  • 4GB e-MMC Flash memory
  • 1 x USB 3.0 port for hard drive or printer
  • Bluetooth 4.0, 1x Gigabit Ethernet WAN and LAN ports
  • WPA2-PSK wireless security
  • Status light ring (user dimmable)
  • 7.5-inches tall, 4.6-inches in diameter
  • Setup requires mobile device with Android 4.0 or iOS 7.0 and up
  • MSRP $199.99

Security is also an increasingly important aspect of wireless networking, and the Wi-Fi router is the main line of defense for many of the smart devices in a home. Making full use of a Wi-Fi router’s security features (including network passwords and firewalls) is something that many people fail to do, and when it comes to upgrading firmware to protect against new threats? That seldom happens, at least in home use.

The OnHub addresses these pain points by simplifying configuration and running security software that Google can update automatically, taking users out of the equation.

Finally, the Google OnHub is also designed to look good. This isn’t as frivolous as it might sound. Wi-Fi routers tend to look businesslike, bristling with external antennas and flashing status lights. People don’t like looking at them (and they’re big), so they stash them out of sight. This often has a serious impact on network performance.

The OnHub is a compact cylinder that looks something like the Amazon (AMZN) Echo. Everything is hidden within, and instead of rows of flashing LEDs, a softly glowing ring offers network status at a glance. If this Google router is placed in the open instead of stuffed in a closet or under a desk, physical positioning alone will deliver a significant Wi-Fi performance boost to many homes.

At the end of the day, Google relies on all of us having a solid, reliable and secure Internet connection. Without that, there’s no search revenue, and many of the technologies it’s trying to diversify into — especially the smart home — also fall flat.

By taking the responsibility for providing the increasingly important home Wi-Fi network away from traditional router manufacturers and selling the consumer-friendly OnHub, Google is protecting its turf and paving the way for a smoother future.

Google is taking pre-orders for the OnHub now, with delivery in the late-August to early-September timeframe.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

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Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015.


Article printed from InvestorPlace Media, https://investorplace.com/2015/08/onhub-goog/.

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