Former CEO Fa Dell
Early staff at Alphabet's smart home company Nest, including co-founder Tony Fadell, was very disappointed with Nest's acquisition.
In early 2014, Google spent 3.2 billion acquisition of Nest. Less than two years later, it formed the holding company Alphabet. Under the leadership of Alphabet, Nest became an independent company and was listed as a model for other Bets projects. The Other Bets project also includes Alphabet's venture capital firm, Smart City Project Sidewalk and other experimental businesses.
However, in reviewing Nest's evolution, early Nest employees said the final outcome was negative for both.
"On the surface, Nest is one of Alphabet's most successful businesses. But leaving Nest alone helped both companies overlook one of the most important things: the idea of consolidation. "Former Nest CEO Fadal said.
In mid-2016, due to a series of issues such as product issues and revenue non-compliance, Fadal resigned as Nest's CEO. Some employees even criticize their management style.
In 2016, Google had tried to sell Nest, but eventually gave up.
This week, Google said the acquisition will help complete Nest's mission. However, this is rather ironic to another former Nest employee.
The employee started working at Nest since Nest was independent in 2011. He said that when Google CEO Larry Page found the Nest to negotiate the acquisition, he promised Google will speed up the completion of Nest's mission.
However, Google's support did not last two years. "This employee said.
After Nest became an independent company under the Big Letter family, Google and Nest employees had no incentive to work together. Nest and Google even started researching very similar products at the same time, including an agreement to talk smart home products to each other.
"I think it would be good for both parties if the merger management team was able to set up a mechanism early so that Google and we could work together more. "The third Nest earlier staff said.
The real pain point came when Amazon launched its smart speaker Echo in 2014. As Echo hit the scene, Google later also strengthened the development of smart home. However, since Nest is an independent company, Nest staff know nothing about what Google does and nothing Google does about Nest employees.
"The rise of digital voice assistants in smart speakers and many other smart home devices has subverted the idea of keeping independent companies focused on developing smart home devices. "Forrester analyst Frank Gillett said. He added that Google now needs to make up for the lost time and act now to better integrate the Nest hardware product with Google's artificial intelligence.
All for Fabrice this should have happened.
"Nest acquired by Google is a specific reason. "Fardère said," I said at the time, "We are senses, you are the brains." "For Nest users and teams, I want Google to live up to its promises it made to us four years ago, instead of trying to sell Nest. & rdquo;
In a previous earnings call, Google underlined that Nest was one of the few other Bets projects that generated huge revenue. Now that Nest is no longer a project of Other Bets, the overall revenues of the Other Bets project will be lower in the next quarterly Alphabet Alphabet.
The two reintegration may lead to friction between employees. Another Nest co-founder, Matt Rogers, just announced that he plans to leave the company in the coming months. An earlier employee said they had received an anxious phone call from people still working at Nest because they were worried that their role would change after the merger. Nest's job titles and job titles are still being worked out. Google confirmed that Nest's current CEO, Marwan Fawaz, will report to Google hardware chief Rick Osterloh.
These former Nest employees reviewed more than five years of work at the company, laughing with frustration, "It feels like a soap opera. & rdquo;