Nest is rolled into Google as Alphabet reshuffles its hardware arm

Alphabet is shaking things up within its hardware division. After operating as an independent subsidiary for the past three years, Nest is being rolled back into Google’s hardware group. Rick Osterloh, who leads Google’s hardware efforts, and Nest Chief Executive Marwan Fawaz, said in the blog post that they hoped integration of their teams would ‘supercharge Nest’s mission’ to make homes safer, friendlier to the environment and more affordable.

They added: “Since Nest joined Google four years ago, the team has experienced incredible momentum. The company doubled its hardware portfolio last year—selling more devices in 2017 than the previous two years combined. Meanwhile, Google has sold tens of millions of products for the home in just the last year, as more people use the Google Assistant to listen to their favourite music, control their connected devices, and get useful information about their day.

“To build on this momentum, we’re excited to bring the Nest and Google Hardware teams together. The goal is to supercharge Nest’s mission: to create a more thoughtful home, one that takes care of the people inside it and the world around it. By working together, we’ll continue to combine hardware, software and services to create a home that’s safer, friendlier to the environment, smarter and even helps you save money—built with Google’s artificial intelligence and the Assistant at the core.

“We’ve had a head start on collaborating since our teams already work closely together, and today we’re excited to make Nest an integral part of Google’s big bet on hardware.”

Google acquired Nest for $3.2 billion in 2014. Nest operated on its own as part of the establishment in 2015 of holding company Alphabet, which also explored selling the firm in 2016 according to Reuters. The merger isn’t expected to result in significant role reductions for the foreseeable future.