I appreciate the comparison and I am flaterred...but I am not Steve Ballmer, I wish I could had his stock options at least...there is thousands or perhaps millions of people who said silly things in the human history...I am not sure what that has to do with the thermostat purchase issue though...are you suggesting that everyone in teh world is rushing to convert their standard thermostats to Google thermostats? (for those who have thermostats, I am guessing few people in Africa don't have them)...Kris
500,000 units a month??? give me a break...I will happily send you $500 if they ever reach that goal...what's wrong with normal thermostats? I have a few at home, why would I spend hundreds of dollars to get Google thermostats? so I can control the temperature when I am away or don;t feel like getting up from my bed? Kris
Think again - they were selling 40-50,000 per month at the beginning of last year, and were hoping to get to 1 million per month by summer. At that point they were at about $10 million per month in revenue. Let's say they only made it 1/2 way to their goal, to 500,000 units per month. That means 100 million per month in revenue, which comes out to 1 billion per year in sales. Valuation is 3 years revenue. I've also assumed an average price of $200/unit, which is conservative considering it usually sells for $235-249.
This doesn't take into account their Protect product which is a whole new revenue stream.
The other value is google gets all that data. I'm sure they'll offer a google dashboard so that your Nest is linked to your google account. Think of the advertising! They can tell when you are home, when you're not, when you're on vacation at home vs. vacation away... All of this is a double edged sword.
Our family went to see this movie one Sunday afternoon, as I recall. It's coming to life!! Egad!
Well, we've seen sci fi movies depicting talking appliances, for decades now. Some of these ideas are probably not bad. Some remote monitoring and control makes sense. Others are just forced. For example, a refrigerator has absolutely no reason to wonder whether you're going on vacation, or just going to work. Design it right, and it will save power whenever it gets a chance.
Much like the article on cars, sometimes the marketing types just get too ambitious to make a lot of sense.
@dougwithau: Kudo's to the founders for a nice exit. We are just jelous because we did not think of it first, or did and could not get the fat payoff.
Kudos indeed -- it's not everyone that wangles $3.2 billion for a thermostat (no matter how cool it looks). I know that if I had been one of the founders, I would be walking around with a great big smile on my face round about now LOL
What are the engineering and design challenges in creating successful IoT devices? These devices are usually small, resource-constrained electronics designed to sense, collect, send, and/or interpret data. Some of the devices need to be smart enough to act upon data in real time, 24/7. Specifically the guests will discuss sensors, security, and lessons from IoT deployments.