Google's Internet of Things divisions have fallen on some hard times

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Google is unquestionably a leader in the tech world, but even leaders struggle from time to time.

That's the case in Google's Internet of Things divisions, as recent reports show that several of the company's IoT projects are struggling as independent companies working under Alphabet, the holding company Google created in 2015.

For example, Nest has not released a successful product since Google acquired the smart home device manufacturer in 2014. Alphabet executives have been pushing the company to debut a smart home security system in 2016, but reports indicate progress has been slow to this point.

Nest CEO Tony Fadell and Dropcam founder Greg Duffy have also publicly played the blame game for these problems. Nest purchased Dropcam in 2015.

Numerous top researchers have bailed from Verily, the life sciences division of Alphabet that focuses on trying to cure diseases with the assistance of data analytics. STAT recently published a story about these departures and said much of the blame falls on Verily CEO Andrew Conrad for pushing these top talents away.

Former employees and managers told STAT that Conrad starts important new projects but then diverts resources on a whim, which causes problems in existing relationships with partners and regulators.

Google also recently said it is actively trying to sell Boston Dynamics, the robotics startup it acquired in 2013, because it thinks the company is still years away from creating a product suitable for market. Google made this announcement months after reports broke that Google's robotics teams were suffering from a lack of focus and integration.

Alphabet has been tightening its wallet for several projects and is strictly holding its subsidiaries to their revenue goals, according to a recent interview with Fadell. Now that these companies have separated from Google's core business, Alphabet's executives can clearly see how these businesses are performing, and Alphabet is not happy with what it's seeing in many cases.

Alphabet plans to abandon some of these underperforming projects (such as Boston Dynamics) to focus on those that it believes will help the business.

Google's focus on the IoT is understandable given the way the IoT Revolution is picking up speed. When it finally arrives in full force, it will change how we live, work, travel, entertain, and more.

From connected homes and connected cars to smart buildings and transportation, every aspect of our lives will be affected by the increasing ability of consumers, businesses, and governments to connect to and control everything around them.

Imagine “smart mirrors” that allow you to digitally try on clothes. Assembly line sensors that can detect even the smallest decrease in efficiency and determine when crucial equipment needs to be repaired or replaced. GPS-guided agricultural equipment that can plant, fertilize, and harvest crops. Fitness trackers that allow users to transmit data to their doctors.

It’s not science fiction. This “next Industrial Revolution” is happening as we speak. It’s so big that it could mean new revenue streams for your company and new opportunities for you. The only question is: Are you fully up to speed on the IoT?

After months of researching and reporting this exploding trend, John Greenough and Jonathan Camhi of BI Intelligence, Business Insider's premium research service, have put together an essential report on the IoT that explains the exciting present and the fascinating future of the Internet of Things.  It covers how the IoT is being implemented today, where the new sources of opportunity will be tomorrow and how 16 separate sectors of the economy will be transformed over the next 20 years.

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The report gives a thorough outlook on the future of the Internet of Things, including the following big picture insights:

• IoT devices connected to the Internet will more than triple by 2020, from 10 billion to 34 billion. IoT devices will account for 24 billion, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion.

• Nearly $6 trillion will be spent on IoT solutions over the next five years.

• Businesses will be the top adopter of IoT solutions because they will use IoT to 1) lower operating costs; 2) increase productivity; and 3) expand to new markets or develop new product offerings.

• Governments will be the second-largest adopters, while consumers will be the group least transformed by the IoT.


And when you dig deep into the report, you’ll get the whole story in a clear, no-nonsense presentation:

• The complex infrastructure of the Internet of Things distilled into a single ecosystem

• The most comprehensive breakdown of the benefits and drawbacks of mesh (e.g. ZigBee, Z-Wave, etc.), cellular (e.g. 3G/4G, Sigfox, etc.), and internet (e.g. Wi-Fi, Ethernet, etc.) networks

• The important role analytics systems, including edge analytics, cloud analytics, will play in making the most of IoT investments

• The sizable security challenges presented by the IoT and how they can be overcome

• The four powerful forces driving IoT innovation, plus the four difficult market barriers to IoT adoption

• Complete analysis of the likely future investment in the critical IoT infrastructure:   connectivity, security, data storage, system integration, device hardware, and application development

• In-depth analysis of how the IoT ecosystem will change and disrupt 16 different industries


To get your copy of this invaluable guide to the IoT universe, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of the IoT.