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Google and Nest acquire Dropcam – One more move into Smart Home

This weekend, Google just announced the acquisition of Dropcam, the video and monitoring system. Acquired by Nest Labs, Google’s 2013 acquisition, Dropcam is the newly added product line to Google’s ambition to embark into the smart home revolution. With a strong ambition.

It’s been expected for a while now, as rumors were big. And it finally happened!

For a total amount of 550 million dollars, Google is acquiring a winning team and product that is on revolutionizing the way we monitor our Home. With the Nest Thermostat and Nest Protect, Dropcam is a second product line added to Home Safety. It feels natural for the Nest Labs, that wants to become the Apple of Smart Home products. Beautiful design, engaging experiences and innovative products are at its core.

Dropcam is a video and monitoring system that allows you to simply record what is happening in your Home and access it, through cloud, everywhere you are. The team designed a simple but beautiful product that fits in your Home and watch out any irregular activities. We already featured Dropcam in a previous article. Once really expensive to video monitor your Home, Dropcam brings an easy way for the mass market to monitor what is happening at Home. It comes with a Cloud yearly subscription to record up to 30 days of video.

This acquisition shows another strong move from Google into your home, by acquiring new startups and products, rather than building the pillar that will make the whole smart home dream happen (What Apple has been doing with HomeKit and HealthKit). Nest aquisition raised the privacy issue question, Dropcam will raise it a step further. But the founder of Dropcam shared his thoughts:

Like Nest customer data, Dropcam will come under Nest’s privacy policy, which explains that data won’t be shared with anyone (including Google) without a customer’s permission. Nest has a paid-for business model and ads are not part of our strategy. In acquiring Dropcam, we’ll apply that same policy to Dropcam too.

The founder’s announcement on Dropcam’s acquisition:

Today is an exciting day for Dropcam. It is one filled with excitement about the future of the connected home. This afternoon, Dropcam signed an agreement to be acquired by Nest.

Aamir and I founded Dropcam in 2009 with a simple mission — to help you know what goes on at home when you aren’t there. We had both seen our dads struggle with “IP cameras” and traditional security cameras that were some combination of hard to use, expensive and low quality.

From the first products that Aamir and I literally built ourselves — writing most of the code and boxing them up and shipping them out — to our flagship Dropcam Pro we have prided ourselves on building simple, secure and high-quality hardware and software experiences. This is exactly why we were willing to consider teaming up with Nest.

Nest and Dropcam are kindred spirits. Both were born out of frustration with outdated, complicated products that do the opposite of making life better. After numerous conversations with Nest Founders Tony and Matt, it was clear that we shared a similar vision. Nest cares as much about customers, privacy and product experiences as we do. Our products and technologies are a natural fit and by joining up with Nest we can fully realize our vision.

Aamir and I want to extend a heartfelt thanks to the Dropcam team, employees, investors and partners, whose passion, focus and dedication have gotten us to where we are today. And this is just the beginning.

Dropcam’s next chapter will be as part of the Nest family. You’ll be amazed at what we can do together. We can’t wait to start.

– Greg