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Google will use ‘smart home’ failures to feather its Nest

To understand why Google has just paid $3.2bn for a company that makes thermostats and smoke detectors, you need to look at some of its earlier attempts to invent the “smart home”.

These were more than simply object lessons in what not to do. Past efforts, though resulting in failure, highlight the range of Google’s capabilities – and why, following this week’s acquisition of Nest Labs, it looks to have taken a formidable lead in a tech market that has barely been invented yet.

Google’s first attempt, five years ago, took the form of an internet service called PowerMeter. This was an online service for monitoring home energy use. It turned out that most people had better things to do than track their energy consumption on a website.

Next came a software platform known as Android@Home, which was aimed at other manufacturers that want to build the “smarts” into internet-connected objects for the home. The first of these products was meant to be an LED lightbulb that could be turned on using a smartphone app. The manufacturer abandoned the idea before it was launched.

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