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Will people let Dropcam see into their homes when it’s owned by Google?

Will people let Dropcam see into their homes when it’s owned by Google?

By Kabir Chibber @quinto_quarto 8 hours ago

Nest, which makes internet-connected smart devices for the home, has boughtDropcam, which makes cameras that monitor the home, for $555 million. Nest was itself acquired by Google back in January for $3.2 billion.

“Eventually, the plan is for us to work together to reinvent products that will help shape the future of the conscious home and bring our shared vision to more and more people around the world,” Nest co-founder Matt Rogers said. Both companies make products for the internet of things, an all-compassing term for devices that become more useful when connected to the web.

Dropcam sells cameras that let you see what’s going on at home over the web, and also allows you to store recordings in the cloud. The company says that almost 40% of its customers pay for cloud recording. The company began when co-founder Greg Duffy tried to help his father determine which neighbor’s dog was pooping on his lawn.

The acquisition means that Google adds home monitoring to thermostats, smoke detectors, laptops, and robots as its hardware offerings grow. Both Nest and Dropcam make their money by selling hardware and subscriptions. With Google making more than 90% of its revenue from advertising, it moved quickly to assuage fears that Google would peer into your house and let marketers know how you like your morning coffee.

Rogers said Dropcam will come under Nest’s privacy policy, which explicitly states that it needs a user’s permission to share their data with third parties, including Google. Nest’s Fadell has vowed that “we have no changes planned” to that policy.

 

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About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

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