Internet of the Things is driving the acceleration of hyperconnectivity. We are walking towards the ubiquitous Internet with great strides and it looks that our own home will be full of devices connected to the network. According with a recent Business Insider report, connected-home device shipments will grow at a compound annual rate of 67% over the next five years. This will mean reaching 1.8 billion units shipped in 2019.
The growing business of Smart Home has not gone unnoticed to the digital giants, especially to the biggest of them: the company formerly known as Google. Getting ready to reap all the opportunities from the Smart Home business is one of the keys to understand the creation of Alphabet. The new organisation is definitive leap ahead in the strategy that started more than a year ago with the 3.2$ billion acquisition of Nest. Even more, it looks that the organisation of Google assets has been a Nest-oriented reorganisation. Nest now has the autonomy to develop its own alliances strategy and its reinforced in the agility needed to grow in a dynamic sector.
The Alphabet accumulation of assets around the Smart Homes business does not end in the Nest devices. In the last months other two elements of Alphabet´s Smart Home building were laid down. Firstly, an operating system and a communication protocol. Brillo and Weave is a clear step in the direction of trying to create a full Smart Home ecosystem following the successful model underpinned by Android in the mobile world. Secondly, a gateway for the interconnection of the Smart Home devices with the Internet. OnHub, based on Brillo OS, with its complete set of wireless protocols, aims to be the essential element of our connected home.
Besides Alphabet, Apple and Alibaba are also developing its own strategies to grab their part of the business. We should have few doubts that Smart Homes will be one of the hottest areas of the battle for the digital economy supremacy. But the main signal, as usual, is the interest of the company formerly known as Google. They want to make your home an Alphabet Home.