Why Google’s Nest Labs Deal Puts Pressure on Apple

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Jan. 14 (Bloomberg) –- First Round Capital Partner Phin Barnes discusses the “internet of things” and the importance of design in the relationship between consumers and technology. He speaks with Erik Schatzker, Stephanie Ruhle and Emily Chang on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Come in and buy nest?

On the surface, probably not.

But with this acquisition, if you are in the start up industry, it illustrates the value of design.

If you are thinking about validation for the connected home and the power of the connected home to change our lives, it is validation of that as well.

When you look at google as a data company or wants to organize the world's information, this acquisition makes a lot of sense.

Were you surprised nest wanted to sell?

That's a very personal decision.

Your vision for the company, it's a partnership in alignment with that and helps you get there faster or is it going to derail you and take you off your vision?

I want to talk to you about design.

Steve jobs was an evangelist of design and apple built the template for the beauty of the modern consumer device.

Who else is doing well in the startup world?

You mentioned square and i think uber has done a good job.

Nest has done a great job of hardware design and i think job own is doing innovative things.

As consumers are having a more intimate relationship with technology, design becomes more important.

Does this make apple look behind?

We have been talking about a potential iwatch or tv but they haven't done any of these things.

In the last few weeks, we've seen samsung and google make huge moves.

Everything's apple has something up his sleeve, but what if they don't? they probably experimented with all of these things, but what are they actually going to come out next?

There has really been nothing since the ipad.

This acquisition puts pressure on apple to think about how they can extend their lead in the hardware space.

They have defined best in class hardware for a long time, so with this acquisition, i think google is making a statement that hardware is an interesting space to play and doesn't limit where software can go.

Are we really on the cusp of the connected or network home?

Ira member 15 years ago when motorola was talking about connecting the home.

It's been the promise ever since the dawn of the internet but it really hasn't come to pass.

It's such an undertaking.

After hurricane sandy, there were fireplaces going off at the wrong time and people said i wish i never did this all stop and there were some real issues with the thermostats during the polar vortex -- people complaining it was two degrees outside and my nest is and working.

If it was a regular thermostat, i could jacket up.

That's like asking if the internet is going to be a real thing.

I think there has been a lot of problems with the software and hardware, but the open movement where you see many more innovators, smart things has over 5000 developers, independent developers are building on top of the platform.

I think you will see a wave of innovation in the hardware combined with software space and it is about the control platform it sits on and how that integrates that will allow you to not have your thermostat rake when it is two degrees outside.

For all these designers, was the jetsons their favorite show?

Probably so.

Describe for us -- if you are successful and smart things is in my apartment, what can i do?

It and all that it -- it allows you to program your environment and your music system comes on.

Your coffee maker comes on and is very jetsons in some ways, but it's very convenient.

If you leave the house and were you have locked the doors to me you can look on your phone.

You can push a button in your garage door will stop -- will shut.

What if my time warner cable is out and i'm not getting internet service question were some people still have land lines.

But all of these people without land lines are sol.

Are we abandoning the basic things we should have in our homes?

I think these are solvable problems.

What about wearables?

A report came out that said wearables were not going to become mainstream until 2020. i get so many wearable devices and none of them have i actually felt compelled to wear.

Companies like job own have had major software and design issues and sometimes they just don't work.

I think there is a utility question.

When you wear a wearable, what does it do for you?

The fitness things, when you get the data and what you do with the data can be a big gap versus something very in -- something very instant.

If you are at a crowded bar and had a ring that would buzz when you have a message, that would be interesting and we have a company that does that.

Just yesterday, i sat down with the ceo of a sporting goods store and he said wearables are the most important thing and then he says if tom brady wins the super bowl and you are wearing a tom brady jersey, that's what people want to buy.

Technology is interesting, but a solid sol's products.

You need the utility and the magic that can be delivered through software and technology.

If tom brady could win the super bowl every year, i would be happy.

This is something you are putting on.

You like fashion and you want to look at.

I want to wear something that looks good and they are not at the point of customization.

The cell phone started as these giant things that gordon gekko carried around and now you will see a similar evolution around other wearables.

Thank you so much.

Emily chang will be joining me

This text has been automatically generated. It may not be 100% accurate.


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