On Google's Acquisition of Nest
daringfireball.net
daringfireball.net
I'm a huge Apple fanboy but they really need to get their shit together on the web services front. Siri still sucks almost unbelievably bad. It never works. Maps still leads me to random streets and goes in circles.
As we move towards smaller and smaller devices one has to assume more of the work is going to be happening in the data center. Not good news for Apple unless they start making some real strategic acquisitions stat. (They've started at least.)
Funny how Google is continuing to corner the data market via acquisitions like Nest. Almost feels...anti-competitive, no? I wonder how long until we start talking about Google the way we still talk about 1990s Microsoft.
Is it plausible that a new company, starting from scratch in the Maps/Search/Personal Assistant/etc. field could actually compete with Google? Or would they just get crushed under the personalizing power of Google's raw data and computational advantage?
Well Microsoft, easily, if they had the will. I guess the pieces are actually all there, but they aren't as direct with posing it as a "personal assistant" or whatever.
If you consider the products separately: there are several major mapping companies, though there have been a ton of confusing mergers and splits in the last 5 years, not to mention OSM. As for Siri, it was a tiny team at Siri, Inc that created the foundations of Siri. Apple has done a ton with it (though I was hoping for more by now), but you can easily imagine a next-gen Siri coming out of a startup.
> Funny how Google is continuing to corner the data market via acquisitions like Nest. Almost feels...anti-competitive, no?
This becomes a little farcical, honestly. First, you can get far more information from a phone, and there are like 3 orders of magnitude more Android phones out there than there are Nest devices.
But more importantly, if we're going to talk about the "data market" -- as if that's some sort of thing -- virtually any acquisition that has customers would help them corner it. But that also means any other company with customers also has a stake in that "market", in which case, no, it does not feel anti-competitive.
And while I certainly am looking into the future when I talk about cornering the market, I think it's an interesting question to ask how you compete against a company like Google that starts with this much user context. How can you build better experiences when they have the advantage in data, ML expertise, and the raw computational power? The incremental acquisitions of data and companies are not the issue...it's the web of connections that is valuable. And Google is not only trouncing Apple, their only meaningful competitor, in that race...Google is pulling even further ahead.
To your initial question that if there is any company which could have built Maps or Siri, Microsoft is more than a good answer. You can try to get really nitpicky on this but it is what it is.
From a competition point of view, antitrust isn't concerned about where you are, but rather how you got there. As Sherman put it:
"[a person] who merely by superior skill and intelligence...got the whole business because nobody could do it as well as he could was not a monopolist"
As far as we know, Google is doing nothing to prevent other companies, like Apple or Microsoft from making similar acquisitions and/or capitalising on the acquisitions they have made.
Microsoft told OEMs that if they sold more than X computers without Windows, their licensing cost would go up by Y. There's also their embrace, extend and extinguish (their own words) which describes their strategy to adopt a standard (Java), add custom behavior (J/Direct) and thus breaking the standard and weakening the product. And this isn't all of it, and they also did some stupid stuff in court (submitting faked videos and getting caught).
As long as Google's behavior doesn't hurt consumers nor does it unfairly disadvantage competition (and being too good and too big isn't enough, they need to actively undermine them), the comparison is absolutely and totally flawed.
This sounds very strange to me given the fact that by definition a monopoly is the control of a market by one entity, it doesn't have anything to do with how it gets there.
Well that depends on the country. In some countries monopolies are illegal and the government is the only one that can perform ones.
Also, questionable practices are not necessarily illegal. For instance, no that long ago (well 20 years or so is not that long for me), having privileged information on wall street wasn't illegal, but questionable.
For me, Maps gives me eerily accurate drivetime estimates whereas Google's times are utterly useless. And I consider the UI patently inferior. I feel like a need two hands and a full minute to do things that require a few quick taps in iOS. Google seems to need to ping their server to get my search history or home address, whereas iOS calls it up in milliseconds. I would also kill to have navigation on the lockscreen as in iOS - it always requires a janky series of button presses and swipes on my Android phone.
Fascinating. Apple Maps is always wrong for me, with the estimated time of arrival constantly changing as I drive, while Google (and Waze) are spot on.
I won't debate the accuracy of either case since it can only be an anecdotal and unproductive conversation. You were disputing the value changing over time, not it being inaccurate. Google does seem to give more optimistic estimates in general.
Not trying to argue - it's just interesting how much variation there is for different people (for both Siri and Android apparently).
Just initiating the voice commands is a pretty telling comparison.
iPhone: hold down ergonomically placed home button until it beeps, say what you want (eg "directions home"). Siri waits a well-timed beat and launches maps.
Android: press unlock button (semi-awkwardly placed on upper right corner), do weird home button motion only used to launch Google now (drag the soft "home" button up). Say "OK Google" to initiate voice detection, say what you want. Then there's a poorly calibrated lag to make sure Now is doing what you want, a hair over 5 seconds maybe.
Then there are weird fit/finish issues. Android seems to do weird things when headphones w/ a mic are connected, so it takes several seconds longer to be able to say "OK Google" after launching. If you use headphones a lot, it's basically a dealbreaker. And I find a lot of fit and finish issues when Google actually performs the action.
I'd be curious to try the Moto X to see if its "always listening" mode mitigates some of these issues.
tl;dr Now is great as a morning homepage, but an abysmal failure as a Siri-like assistant
The more concerning thing to me, is Apple's apparent usability weakness when it comes to iCloud, syncing and its devices. I've worked it out now, more or less, but the potential for confusion is tremendous. If I turn on syncing, I expect syncing. If I turn off syncing, I expect syncing to stop, I do not expect warnings about documents being deleted from various devices.
Similar with calendars. Turn on iCloud and suddenly you have calendars 'On My Mac' and in iCloud. All the calendars are duplicated. Horribly confusing behaviour for someone who is new to it.
This has been a problem with iTunes syncing as well. Constantly warning me about deleting apps and photos when I check or uncheck a box. Does anyone ever want to say yes to any of those questions? Very user hostile behavior.
There's still no easy way to randomly get photos from a computer onto my ipad. I have to use some 3rd party app or frickin mail them to myself. The photo syncing feature is useless.
maps has notoriously bad data.
Google and Apple must use the same mapping data, because I see the same errors in both apps. Of course with Google, after I report the error it gets fixed. I can’t say the same for Apple. And Navteq* has more detailed and accurate data than either of them.
What Google has is superb place data. Apple has… Yelp.
*Assuming you have recent Navteq data. Not the nav system in your car that hasn’t been updated in 2 years.
He's a known quantity at Apple and he's doing hardware that would expand their market. I know they don't do a lot of acquisitions but this would seem to be a no-brainer for them.
Nest is neat. I don't have one but my neighbor does and it's a fine product. I'm as "gadgety" as the next guy here, but even after playing with Nest and being impressed I still wasn't compelled to buy one. I dunno, maybe one day.
I'm guessing that to them, it's all or nothing: either they invent and market the product, or they're not interested.
Unsustainable hubris, if you ask me.
Or the opposite of hubris. They want to stay focused on their product line. They're happy to put connected home products in their stores, as they've done with nest; but they recognize they are already spread thin, so they do not actually want to make products in that space. Apple's acquisitions tend to be targeted improving their existing product line, not rapid expansions into new products.
I would bet Apple could make a good washer and dryer, but no one is claiming Apple is not out there courting the best washer/dryer company due to hubris.
So you're saying that they've become a 'not invented here' kind of company?
Feels like Google has a lock on the talent that could help Apple build out their capability here.
They'd need to take services seriously as well, for starters.
Sadly, no. I doubt even Jobs would have made that shift were he still alive, but I'm certain Tim Cook won't.
Android is good, but it's quickly turning into Windows 98 - productive but messy.
At the same time Microsoft is making an impressive pace in both the hardware and web-service fields.
Nest has a huge staff for what it currently sells.
I thought something similar. And then I worked there for a summer. Building hardware is much more difficult than you think, in ways that aren't immediately obvious.Someone like Tony can easily raise capital in Silicon Valley, and Nest's products were selling extremely well across many retail locations. I'd be astonished if they were running out of money.
Why is it surprising that scaling is the issue? Tony's entire background is in devices and hardware, not large software systems.
They have a huge complex stack. Imagine building a system with tens (or hundreds) of thousands of connected nodes, all streaming realtime data that must be analyzed, and which can't ever go down. A Django app just won't cut it. And that's just the tip of the iceberg for Nest. The machine learning is surprisingly sophisticated.
"... Google offers to bring that scale to us. For me, ultimately building great products is key.... ...you have to look at markets outside of the US. We are doing very well in the US and Canada but we need to get to Europe and around the globe. Just getting to UK has taken up a lot of time and energy and when you look at Europe, there are many countries and many opportunities. It is an atoms-based business and a lot goes into getting it to scale — legal, physical distribution and even localization are time consuming and need new kind of scale."
Here is the interview: http://gigaom.com/2014/01/13/nests-ceo-tony-fadell-explains-...
The thermostats don't cease to function if they can't contact nest's website. I agree that it's important, but it's no more critical than any other day-to-day website.
Right? RIGHT?!
Also interesting is that quite a few municipalities forbid connecting the fire alarm system to any external system, unless the external system is UL listed. Could be some regulatory hurdles in Nest's future.
Fadell has intimate knowledge of Apple's scaling troubles—LaLa, iTunes Store, App Store, MobileMe, etc—and Apple has infinite money. Building truly scalable web services is no easy task, and Google is head and shoulders more capable than anybody else.
Do not look at Nest as a thermostat company. Look at what they could be 10 years from now—the timescale Fadell is surely thinking on—and you begin to understand the real scaling issues they will face.
Companies raise huge rounds when they've nailed their product, their production lines, and their sales funnel. They know what they're doing and need cash to accelerate.
Venture capital is not charity.
Then cancel the device after 2 years because it doesn't fit into Google vision anymore.
And to think people are paying monthly for cable television!
(for more creepy fun, do a Google image search for "HAL 9000")
But it's almost as if he's beginning to wonder about Apple's cojones.
Oh, and iGoogle.
I wouldn't call this "uninteresting" given the rapid advances in leveraging Boltzmann machines for deep learning.
In addition, the comparisons with traditional methods for solving that problem show that you may as well solve the problem on normal hardware. Then the problem it solves stated as "Ising model Hamiltonian using quantum computer" is fairly uninteresting given that it is cheaper and simpler to solve the "Ising model Hamiltonian using classical hardware".
More like 0.8% - $3.2B purchase on $375B market cap. Or it is around 10% of annual gross profit, or 6% of their cash reserve of $54B.
If I were Google, I'd blow a fat wad of those billions and buy Sony. There's a company that would really fill in a lot of Google's gaps - gaming, consumer hardware beyond the cellphone scale, a big library of media properties to integrate into the Play store.
A quick Googling puts Sony's market cap at $18B. A big chunk of Google's cash reserves, but imagine how terrified Microsoft would be of Android-powered PS5s.
I'm not sure I agree with this. According to this article:
http://www.forbes.com/sites/adamhartung/2013/01/20/sell-micr...
"Microsoft makes more than 75% of its profits from Windows and Office. Less than 25% comes from its vaunted servers and tools. And Microsoft makes nothing from its xBox/Kinect entertainment division, while losing vast sums in its on-line division (negative $350M-$750M/quarter)."
I realize they're trying to position the XBOX One as your home entertainment hub - but the bigger question is whether there's a future for home gaming consoles at all, or whether that functionality will just be folded into your TV, cast from your mobile devices, or handled by some other connected multi-purpose device.
Over a few years time, Nest quickly pays for itself, saves you money every month, and reduces your energy footprint.
It doesn't seem like a "massively over engineered pretty device that very few people need" to me.
I, for instance, run 3 separate computers 24/7 when I could probably get away with combining them into 1 or 2 if I wanted. I could also turn them off when I'm not home. I just don't really care.
I am sorry... yes having a higher temp setting means the heat will on for longer (or ac for less) but it DOES change the temperature of the air. The thermostat measures the temperature and turns the mahcine on and off accordingly.
If you never met one of those people that say "hey, it's too hot here, let me lower the thermostat" just after they turn the AC on, you are a very lucky guy.
The controller controls the input. The state changes, because the control input is changed.
The thermostat is not a timer.
My point was, for any reasonable, non-autistic reader, it was perfectly clear that the GP knows how a thermostat works and that his point was that many people think the thermostat changes the temperature that the burner generates, or at least whatever is output by that burner/installation (be it water or air). Now I don't have an opinion on that matter, but I'm annoyed by your littering of the conversation over a slight sloppiness in expression in a context that doesn't call for the level of correctness you, from your high horse, are calling for.
There might be many such people but that is not what he said. I apologize that my comment clashes with your aesthetic preference of what a discussion should look like.
You can probably get most of the savings with what the US apparently call setback thermostats:
http://en.wikipedia.org/wiki/Programmable_thermostat
(that page cites Consumer Reports as these will save you $180 per year, edit: and interestingly lower down it says that in actual deployments they may slightly increase bills/energy usage, main culprit? the horrible UI)
But a) even to get the basics they have a UI like programming VCRs, and so can't be what you refer to as "simple" and b) they have obvious failure modes that need babysitting and manual intervention like it taking longer to heat your house up during cold winters (or just an unusually cold day) so the time it comes on in the morning should be slightly earlier.
It's a real UI challenge, that if solved will save money and energy (which seems to be a thing Google is interested in generally).
There are already products that simply shift the UI into a smartphone app (like British Gas's Hive https://www.hivehome.com/) and otherwise are mostly just programmable thermostats but they mostly still have a box (for manual overrides) and cost as much as Nest, without looking as nice or having such clever software.
That isn't as fancy as responding to the weather, but the feature is pretty common.
Nest Thermostat has various concrete benefits, such as energy savings, general ease-of-use, and aesthetics, but more importantly it signals the beginning of other thoughtfully designed hardware experiences for the household from the company.
What about the pluto switch or the custom servers? Sure, they don't make chips or maybe don't even do PCB layout and all of that stuff, but I'm sure they have great hardware designers and embedded software people, no? I didn't even mention the google glass, mobile devices, and self-driving cars.
EDIT: Got it. Thanks. Was too eager to respond..
> The software that Google was most serious about — web search, Gmail, and so forth — ran in the cloud, and with the company’s legendary data centers, they effectively built their own hardware.
> In a sense, Google has always followed Kay’s adage. The software that Google was most serious about — web search, Gmail, and so forth — ran in the cloud, and with the company’s legendary data centers, they effectively built their own hardware.