Google headed for fun times with Nest

In a push to deepen its digital footprint, Google has acquired Nest for $3.2 billion. The acquisition will leave Nest's operation virtually untouched, except for the added advantage of falling under the Google umbrella.

Why the buyout?

Nest has an incomparable stash of data that can support Google on dominating the internet.

Tony Fadell, founder and CEO of Nest said that Google will be helping in terms of resources on the global scale and platform reach to accelerate, which will help it change the world faster than Nest could going alone.

Fadell has also noted that Nest's privacy policy limits the use of customer information it gathers through the improvements of its products and services.

"The terms of service are not going to change."

So what's in it for Google?

Well, the acquisition has a lot to do with Google's interest in Nest's innovative internet-connective thermostats and fire alarms. Nest developed a product range of energy saving, smoke detecting alarms that can be operated by a simple wave of a hand. The thermostat can also detect a household's daily habits and adjust the surrounding temperature accordingly.

According to a research by Garter, approximately 30-folds increase of internet users connected through various gadgets will be seen by 2020, as compared to the 900 million figures in 2009.

This prediction places Nest at the centrefold of internet-connected home products, which will inadvertently pave a way for Google to span its reach to billions of internet users-to-be, solidifying a long-term growth.

"Nest itself learns about people – whether they're home, what are their hours – it could tell what types of rooms they're in and potentially sensors in there could be able to tell activities of what a person is doing during the day," said Angela McIntyre, a Garnet analyst.

Potentially, if Nest ever lax on its privacy policy, the data of the innovative household products company will be stacked upon the data that Google already has. In short, they company will dominate in terms of helping advertisers and marketers 'know' more about its consumers.