WEBVTT - TechStuff Builds a Nest 0:00:04.320 --> 0:00:07.280 Get in touch with technology with tex Stuff from how 0:00:07.320 --> 0:00:15.600 stuff dot com. Hei everyone, and welcome to tech Stuff. 0:00:15.640 --> 0:00:19.520 I'm Jonathan Strickland and I'm Lauren, And you know, I 0:00:19.600 --> 0:00:23.200 just want to build a nice little comfy section in 0:00:23.200 --> 0:00:26.279 this room, just a little a little comfy area that 0:00:26.280 --> 0:00:28.520 I can just snuggle up in and go to sleep. 0:00:28.600 --> 0:00:31.760 I'm going to cull it my nest. And then we 0:00:31.880 --> 0:00:35.800 got some requests for people that they wanted me to 0:00:35.840 --> 0:00:39.040 cover the nest technology. It's really just a bunch of 0:00:39.040 --> 0:00:42.360 pillows and blankets. I don't know what the big deal is. Well, 0:00:43.640 --> 0:00:46.080 it's really pretty advanced. It's true what it is, it's true. 0:00:46.080 --> 0:00:48.280 It's true. Not structurally speaking, it is not the most 0:00:48.320 --> 0:00:52.920 sound of actual buildings. And we have had a collapse, 0:00:52.960 --> 0:00:59.360 but fortunately everyone was just cuddled, so it's perfectly Oh wait, yeah, 0:00:59.400 --> 0:01:03.000 there's there's an other nest, right, there's there's We're on 0:01:03.000 --> 0:01:05.560 the show called text Stuff. That's why there was all 0:01:05.560 --> 0:01:08.720 that stuff on Twitter. Right. Yeah, Google has not actually 0:01:08.800 --> 0:01:11.680 offered to buy your pillow fort for three point two 0:01:11.680 --> 0:01:17.240 billion dollars. I need to retract an email I just sent. Alright, uh, yeah, 0:01:17.280 --> 0:01:21.160 so we're gonna talk today about the Nest Labs company 0:01:21.319 --> 0:01:24.840 and uh and the products they make, And I, like 0:01:25.040 --> 0:01:28.360 Lauren was saying, Google has made a really incredible move 0:01:28.560 --> 0:01:33.200 in offering to purchase Nest for a what some might 0:01:33.200 --> 0:01:36.600 call a ridiculous sum of money. I think that three 0:01:36.600 --> 0:01:40.240 point two billion accounts as pretty ridiculous. I mean, I mean, 0:01:40.240 --> 0:01:43.040 it's a company that makes two things so far. Yes, 0:01:43.120 --> 0:01:47.440 and it's only existed since yea, and they've only been 0:01:47.480 --> 0:01:50.720 having stuff that they could sell since eleven. So anyway, 0:01:50.800 --> 0:01:53.320 let's let's talk about this. If you had told me 0:01:53.480 --> 0:01:56.360 ten years ago that I'd be sitting down and talking 0:01:56.720 --> 0:02:00.960 into a microphone to record a show about a company 0:02:01.000 --> 0:02:05.440 that's big product is a thermostat, first I would say 0:02:05.560 --> 0:02:07.840 who are you and why are you in this consulting firm, 0:02:07.880 --> 0:02:10.120 because that's where I was ten years ago. But moreover 0:02:10.160 --> 0:02:12.400 I just said no, I wouldn't who who would want 0:02:12.400 --> 0:02:14.920 to listen to that? Well? Okay, that there has been 0:02:14.919 --> 0:02:17.040 a lot of buzz about Nest over the past couple 0:02:17.080 --> 0:02:20.080 of years that it has existed, because they make these 0:02:20.080 --> 0:02:25.480 these smart devices, smart thermostats and smart smoke detectors, carbon 0:02:25.480 --> 0:02:29.280 monoxide exactly. Um, and and you know, with the Internet 0:02:29.320 --> 0:02:32.640 of things becoming more of a real thing people have 0:02:32.680 --> 0:02:35.680 been excited about. This is one of the leading companies 0:02:35.720 --> 0:02:38.359 that's creating the kind of hardware that you can use 0:02:38.440 --> 0:02:41.680 to to make your home and Internet of things. Yeah, 0:02:42.120 --> 0:02:46.840 and also the design aesthetic right, gorgeous it is and 0:02:46.840 --> 0:02:49.320 and and it works with your smartphone and that's all terrific. 0:02:49.440 --> 0:02:51.760 And I did want to mention that for the record, 0:02:51.800 --> 0:02:54.440 thermostats are kind of a big business. There's some ten 0:02:54.480 --> 0:02:57.720 million sold in the US every year, and they control 0:02:57.880 --> 0:03:00.840 some half of the energy used in US homes, right, 0:03:01.120 --> 0:03:03.880 so this is not insignificant. Yeah. If you talk, if 0:03:03.919 --> 0:03:06.760 you look at your energy bill and you divide it 0:03:06.800 --> 0:03:10.160 by two, that amount of money is going straight to 0:03:10.240 --> 0:03:16.120 your Yeah. So if you are able to make an 0:03:16.160 --> 0:03:19.680 impact on that, it will reflect in the amount of 0:03:19.680 --> 0:03:21.760 money you have to spend on energy bills, particularly if 0:03:21.760 --> 0:03:23.560 you live in a place where you have a fairly 0:03:23.600 --> 0:03:26.760 extreme climate, so that your HVAC system has to work 0:03:26.840 --> 0:03:29.560 extra hard to make sure your living space is a 0:03:29.560 --> 0:03:33.359 comfortable one. And uh, and in fact, what this all 0:03:33.440 --> 0:03:37.600 comes back to a guy named Tony Fidel, who once 0:03:37.680 --> 0:03:41.320 upon a time worked for a little company called Apple. Yeah. 0:03:41.400 --> 0:03:43.480 By work, do we mean that he kind of lad 0:03:43.560 --> 0:03:47.280 the iPod and kind of that the iPhone teams for 0:03:47.320 --> 0:03:50.640 a while, for multiple generations for iPod and I think 0:03:50.720 --> 0:03:53.760 three generations of iPhone he was overseeing that. He was 0:03:53.840 --> 0:03:57.839 senior vice president of those departments and uh. And so yeah, 0:03:57.880 --> 0:04:01.800 we're talking about someone who definitely you about designing for 0:04:01.880 --> 0:04:05.400 a particular aesthetic, uh, and to create something that is 0:04:05.480 --> 0:04:10.200 attractive for consumers. Because it's easy for us to forget this, 0:04:10.640 --> 0:04:12.200 and I know we say it on tech stuff all 0:04:12.200 --> 0:04:13.680 the time, so maybe it's not easy for you to 0:04:13.720 --> 0:04:17.799 forget because we say it so frequently. But before the iPod, 0:04:18.200 --> 0:04:22.520 you know, MP three players existed, there were, but no 0:04:22.560 --> 0:04:26.440 one had really designed one that really caught the public's 0:04:26.440 --> 0:04:28.440 attention like there were there was no one that was 0:04:28.480 --> 0:04:32.120 a dominant player at the time. And then the iPods 0:04:32.160 --> 0:04:35.960 design really started to kind of dominate to the point 0:04:35.960 --> 0:04:41.040 where you started seeing other companies designs look more iPod ish. 0:04:41.520 --> 0:04:44.479 Not to try and stir up any patent you know, 0:04:44.680 --> 0:04:48.760 wars again, but but people realized that, I mean, previous 0:04:48.839 --> 0:04:51.480 to that, I think that most MP three players looked 0:04:51.560 --> 0:04:55.560 like they were functional, Yeah, like bricks. I had one, 0:04:55.600 --> 0:04:58.080 I mean I had one that I loved because it 0:04:58.120 --> 0:05:01.560 was probably about eight percent the price of an iPod, 0:05:01.600 --> 0:05:04.560 but it had twice the capacity. But it looked like 0:05:04.600 --> 0:05:07.400 a brick and it felt like one too. It was heavy. 0:05:07.440 --> 0:05:10.400 But the uh, you know, and the iPhone another great example. 0:05:10.440 --> 0:05:13.240 We've talked about that before too, about how in the 0:05:13.320 --> 0:05:17.960 United States smartphones were pretty much the realm of executives, 0:05:18.040 --> 0:05:21.360 right like BlackBerry was king in the US. Now in 0:05:21.400 --> 0:05:23.440 Europe and in Japan that was a different story, but 0:05:23.600 --> 0:05:25.960 not here in the US. It wasn't until the iPhone 0:05:26.000 --> 0:05:28.320 came out that you started seeing the consumer market move 0:05:28.360 --> 0:05:30.040 toward it. So this is a guy who was right 0:05:30.040 --> 0:05:32.880 there on the forefront. He knew a thing or two about, 0:05:32.920 --> 0:05:35.800 you know, making sure you had an attractive product. But 0:05:35.960 --> 0:05:39.280 that's not exactly what got him excited about this. First 0:05:39.320 --> 0:05:42.000 of all, he retired. He retired in two thousand eight 0:05:42.040 --> 0:05:44.080 from Apple. He was he was like, okay, I have 0:05:44.240 --> 0:05:49.120 made my mark. I I have helped bring to really 0:05:49.480 --> 0:05:55.480 influential products to the market. I may rest, but apparently 0:05:55.520 --> 0:05:58.080 things just weren't always you know, the most comfortable temperature 0:05:58.160 --> 0:06:01.000 at the Fidel house. Maybe he just got up to 0:06:01.080 --> 0:06:04.880 change the thermostat one too many times, And he started 0:06:04.920 --> 0:06:08.800 thinking about this fact, the fact that half of your 0:06:08.920 --> 0:06:12.279 energy is spent controlling the climate of your home, and that, 0:06:12.440 --> 0:06:15.520 according to at least some study that he was aware of, 0:06:15.720 --> 0:06:19.000 because it's in a blog post on the nest uh 0:06:19.200 --> 0:06:23.160 web page, that the average person adjusts his or her 0:06:23.200 --> 0:06:28.320 thermostat hundred times a year, and so and and and furthermore, 0:06:28.400 --> 0:06:31.080 he was, you know, he was trying to update his 0:06:31.200 --> 0:06:34.000 home to he he was like, we've got these gorgeous 0:06:34.400 --> 0:06:38.560 products for our music and for communication. Why can't we 0:06:38.680 --> 0:06:41.440 have that kind of thing for everything at our house? 0:06:41.560 --> 0:06:45.479 Why does why does this control for my climate where 0:06:45.520 --> 0:06:48.680 apparently I'm getting up to do it multiple times a day? 0:06:48.720 --> 0:06:50.880 Because if it's fift hundred times a year, that's you know, 0:06:51.400 --> 0:06:55.159 that's a bunch. Why is it so boxy and ugly? 0:06:55.360 --> 0:06:58.960 And because the almost thermostats not really aesthetically pleasing, they're 0:06:58.960 --> 0:07:02.720 they're functional. So that's yeah. Yeah, According to another guy 0:07:02.760 --> 0:07:04.120 that we're going to be talking about in just a 0:07:04.120 --> 0:07:07.320 couple of seconds, the design, the basic design on thermostats 0:07:07.360 --> 0:07:11.240 has not really changed since the n Yeah, you either 0:07:11.280 --> 0:07:13.280 have the digital kind or you have the old kind 0:07:13.280 --> 0:07:16.800 that has sort of a coiled thermometer in it. If 0:07:16.800 --> 0:07:18.680 you want to know more, you can actually go back. 0:07:18.720 --> 0:07:21.200 We did a tech Stuff episode about how thermostats work 0:07:21.600 --> 0:07:23.920 back in the day where we talk about the actual 0:07:24.040 --> 0:07:28.120 the actual mechanics of a thermostat, both the I think 0:07:28.160 --> 0:07:32.040 we mainly focused on the old the old mercury switch kind, 0:07:32.080 --> 0:07:34.480 but there are various other types as well. Um And 0:07:34.520 --> 0:07:36.760 another thing that Fiddel was thinking about was the fact 0:07:36.880 --> 0:07:39.720 that he, you know, we we live in the incredible future. 0:07:39.720 --> 0:07:43.080 Why can't I control my thermostat from my smartphone? Right? 0:07:43.480 --> 0:07:45.960 And and and there were some products out there that 0:07:45.960 --> 0:07:47.600 would let you do that, but they cost like five 0:07:48.040 --> 0:07:50.640 dollars a unit, right and you had to you know, 0:07:50.720 --> 0:07:52.800 you you essentially had to go to some sort of 0:07:52.840 --> 0:07:56.920 home automation specialist and then have that installed for them. 0:07:56.920 --> 0:07:59.000 Wire why are these things in for you? It wasn't 0:07:59.040 --> 0:08:01.720 like something where you could go to a warehouse in 0:08:01.960 --> 0:08:06.960 or or is some major store people are alows or 0:08:07.040 --> 0:08:10.400 something like that and say show me where the automated 0:08:10.600 --> 0:08:15.040 or the remote thermostats are, because it was all packages 0:08:15.080 --> 0:08:17.800 that you had to go through contractors to get. So 0:08:17.960 --> 0:08:21.239 not the not the most accessible, certainly. And he also 0:08:21.320 --> 0:08:23.880 realized that we were getting to a point as far 0:08:23.920 --> 0:08:26.840 as computer software is concerned, where you could create very 0:08:26.840 --> 0:08:32.640 sophisticated algorithms that could have quote unquote learning behavior right. 0:08:32.880 --> 0:08:35.960 They could start to recognize patterns and then respond to 0:08:36.000 --> 0:08:39.920 those patterns in a predetermined way. So the big example 0:08:40.000 --> 0:08:42.679 that we would have with NEST is that if no 0:08:42.720 --> 0:08:45.280 one's in the house, there's no need to have the 0:08:45.280 --> 0:08:48.800 heat cranked up or the a C cranked up to 0:08:48.920 --> 0:08:52.679 keep the house at the regular comfortable temperature. And if 0:08:52.720 --> 0:08:55.600 you know when people are coming home, all right, if 0:08:55.600 --> 0:08:57.800 it notices that you come home at six thirty every night, 0:08:57.840 --> 0:09:00.360 then it can start working the house to words that 0:09:00.400 --> 0:09:03.560 temperature whenever it needs to in order to have it 0:09:03.600 --> 0:09:05.320 ready for you to get home. Yeah, so when you 0:09:05.360 --> 0:09:07.520 walk through the door, it feels as if your house 0:09:07.559 --> 0:09:10.680 has stayed that temperature all day long, whereas the reality 0:09:10.840 --> 0:09:14.520 is between the hours of whatever and whatever, it was 0:09:14.800 --> 0:09:18.000 not you know, either the system wasn't working at all, 0:09:18.120 --> 0:09:20.800 or it wasn't working nearly yet full capacity. It was 0:09:20.800 --> 0:09:24.160 working enough so that it wouldn't take too much work. Yeah, yeah, 0:09:24.559 --> 0:09:26.120 you don't want to I mean, obviously you don't want 0:09:26.120 --> 0:09:28.640 to shut everything down like, if it's if it's the 0:09:28.640 --> 0:09:32.520 the what was what do they call it the polar vortex? When? Uh, 0:09:32.520 --> 0:09:34.200 it was when I was at ce S, so I 0:09:34.240 --> 0:09:37.240 missed it. I wasn't here in Atlanta. That's what they 0:09:37.320 --> 0:09:40.160 call nine degrees here. There's some kind of science about 0:09:40.200 --> 0:09:42.640 it that I think that we have actually written stuff 0:09:42.640 --> 0:09:44.400 about on how stuff works at this point, But I 0:09:44.559 --> 0:09:47.800 have no idea. I just saw tweets that said polar vortitext. 0:09:47.880 --> 0:09:49.880 I was like, I don't know what it is. It 0:09:49.960 --> 0:09:52.400 the day after tomorrow back in Atlanta, I don't know 0:09:53.040 --> 0:09:56.000 nine degrees. It was basically, yeah, in that case, you 0:09:56.000 --> 0:09:57.920 wouldn't want the house to get all the way down 0:09:57.920 --> 0:10:01.160 to you know, below freezing. Obviously may not, but at 0:10:01.160 --> 0:10:03.280 the same time, you wouldn't want it to be at 0:10:03.360 --> 0:10:05.840 you know, seventy five degrees because you'd be using a 0:10:05.840 --> 0:10:08.640 lot of energy while you're not actually there. So it 0:10:08.679 --> 0:10:11.920 needed He saw the problem that it was an engineering problem. 0:10:11.960 --> 0:10:15.480 You had to build a device that could monitor the temperature, 0:10:15.640 --> 0:10:19.200 keep it within a certain range, and then be flexible 0:10:19.320 --> 0:10:22.480 enough so that that range changes based upon the parameters 0:10:22.520 --> 0:10:26.040 that are present. And also if you happen to like it, 0:10:26.520 --> 0:10:29.720 warm in the morning but cold at night. Then if 0:10:29.760 --> 0:10:32.000 you had a thermostat that could learn these patterns, it 0:10:32.080 --> 0:10:35.319 could start to anticipate it and change them for you proactively, 0:10:35.679 --> 0:10:37.040 so you don't have to be the one to go 0:10:37.120 --> 0:10:39.320 up there and say like, oh, you know, I like 0:10:39.440 --> 0:10:41.160 it cold when I go to bed, but when I 0:10:41.160 --> 0:10:43.800 wake up it's it's my body temperature so low. I 0:10:43.840 --> 0:10:45.679 need to get my temperature up. I need it to 0:10:45.720 --> 0:10:50.640 be warmer. So this was a great opportunity he saw. 0:10:50.720 --> 0:10:53.880 So he ended up contacting a couple of other folks 0:10:54.080 --> 0:10:58.600 and uh working on an idea for a learning thermostat. Yeah, 0:10:58.679 --> 0:11:01.760 and these were mostly other ex Apple folks or perhaps 0:11:01.760 --> 0:11:04.400 folks that were maybe at the time still working for Apple. 0:11:05.120 --> 0:11:08.280 Exactly the date lines of these they're certainly ex Apple 0:11:08.360 --> 0:11:12.440 folks now yes, um and and one of them, Mr 0:11:12.480 --> 0:11:16.920 Matt Rogers, he would wind up co founding this company, 0:11:16.960 --> 0:11:23.040 Nest with yep so t is when Nest Labs officially 0:11:23.080 --> 0:11:28.640 forms may specifically, and they their strategy was to be 0:11:28.760 --> 0:11:31.240 kind of quiet about what they were doing. They didn't 0:11:31.600 --> 0:11:33.840 talk about their products, they didn't talk about their lines 0:11:33.840 --> 0:11:36.240 of research really, and so it kind of took the 0:11:36.320 --> 0:11:41.080 world by surprise when in October of twenty eleven, Fidel 0:11:41.280 --> 0:11:44.000 essentially announces, Hey, here's this thing we've been working on. 0:11:44.400 --> 0:11:48.320 It's this little, round, gorgeous looking device. It's actually a 0:11:48.360 --> 0:11:52.080 thermostat and it's smart and it can connect to WiFi 0:11:52.120 --> 0:11:54.480 and you can adjust it with your phone and it 0:11:54.559 --> 0:11:57.520 learns what you like. And people were just thinking you 0:11:57.600 --> 0:11:59.800 are saying too many things, Mr Man, I don't know 0:11:59.840 --> 0:12:02.720 what you what's going on. I think they owe so 0:12:02.800 --> 0:12:07.400 much of their um, just general corporate feel from Apple. Uh. 0:12:07.480 --> 0:12:09.839 You know, Matt Matt Rogers strikes me as kind of 0:12:09.840 --> 0:12:13.080 an Apple fanboy who who became eventually one of the 0:12:13.440 --> 0:12:16.640 iPod software developers there. Um, but he has said that 0:12:16.679 --> 0:12:18.640 his first computer when he was like three years old 0:12:18.679 --> 0:12:22.120 was a Macintosh Plus and that, um, a lot of 0:12:22.160 --> 0:12:25.400 the you know, design, sensibility and just just concepts of 0:12:25.400 --> 0:12:28.240 how to run a business are definitely deeply owed to 0:12:28.679 --> 0:12:32.160 Apple in general and Steve Jobs very particularly sure, and 0:12:32.280 --> 0:12:35.720 you can certainly see elements of that when you look 0:12:35.760 --> 0:12:41.079 at both the company and its products. So Fidel wrote 0:12:41.080 --> 0:12:43.880 a blog post that went up on the Nest website 0:12:44.200 --> 0:12:49.439 on October and kind of explained why a thermostat because 0:12:49.440 --> 0:12:51.559 that was you know that that you had two big 0:12:51.600 --> 0:12:54.400 reactions from people when this was first announced. People would 0:12:54.400 --> 0:12:58.080 say uh huh, like what what's what's your game? Why 0:12:58.160 --> 0:13:00.760 would you even do this? And the other where like 0:13:00.800 --> 0:13:02.679 where when and where can I buy one of these? 0:13:02.679 --> 0:13:05.640 Because it looks beautiful? And I mean, I remember when 0:13:05.640 --> 0:13:07.440 this came out because I remember, you know, I was 0:13:07.480 --> 0:13:10.199 a big fan of shows like c Nets buzz Out Loud, 0:13:10.600 --> 0:13:14.320 and I remember people like Tom Merritt and Molly would going, uh, 0:13:14.360 --> 0:13:16.400 you know, kind of bonkers over this thing. They were 0:13:16.440 --> 0:13:20.000 they were like this, yeah. And at the same time 0:13:20.000 --> 0:13:21.559 when I started looking into it and like, gosh, I 0:13:21.640 --> 0:13:23.840 kind of want one of those two. Well, he in 0:13:23.920 --> 0:13:26.720 that blog post laid out what it was they wanted 0:13:26.800 --> 0:13:28.440 the thermostat to be able to do. He said he 0:13:28.520 --> 0:13:32.000 wanted to design the thermostat to learn your preferred temperature 0:13:32.080 --> 0:13:35.960 and schedule since when you left the house or when 0:13:36.000 --> 0:13:39.160 you came home, to give you tips and feedback on 0:13:39.240 --> 0:13:41.920 your energy use. To be able to connect to WiFi 0:13:42.000 --> 0:13:44.520 so you could control it from anywhere, for it to 0:13:44.600 --> 0:13:48.200 look beautiful, and for you to feel proud to actually 0:13:48.240 --> 0:13:50.680 be an owner of it, which it's very Steve jobs 0:13:50.760 --> 0:13:53.360 ish kind of thing, right, and also to have a 0:13:53.440 --> 0:13:56.960 positive impact on the world. And you know, I honestly 0:13:57.040 --> 0:14:00.000 think based upon the work that this company has done, 0:14:00.280 --> 0:14:03.840 they're being they're being sincere about that. It's not that, 0:14:03.880 --> 0:14:06.959 you know, it's obviously it's a business, but it's not 0:14:07.120 --> 0:14:09.480 something where I don't think that's just lip service, like 0:14:09.520 --> 0:14:11.600 let's make the world a better place. I haven't heard 0:14:11.600 --> 0:14:14.800 any numbers from outside sources, but according to the company 0:14:14.920 --> 0:14:19.320 UM as of as of only February often they had 0:14:19.320 --> 0:14:22.440 already helped UM energy efficiency to the tune of saving 0:14:22.520 --> 0:14:25.560 like two five million kill a lot hours of energy, 0:14:25.640 --> 0:14:28.760 so I'm like twenty nine million dollars worth and in 0:14:28.960 --> 0:14:32.360 US yeah, conversion, So you're saving money and you're also 0:14:32.600 --> 0:14:35.840 by by taking down some of that demand, we don't 0:14:35.880 --> 0:14:38.400 have to produce as much energy. We're not wasting it 0:14:38.520 --> 0:14:41.680 on on heating an empty house, or we're not burning 0:14:42.040 --> 0:14:44.480 we're not burning even more coal or or using up 0:14:44.480 --> 0:14:47.320 more natural gas or whatever it happens to be that 0:14:47.840 --> 0:14:51.440 has provided the heat and or a c for those homes. 0:14:51.960 --> 0:14:55.240 And UM it's interesting they started taking pre orders for 0:14:55.280 --> 0:14:58.320 the Nest thermostat and I think that was at a 0:14:58.760 --> 0:15:02.040 price point of two, which I believe is what still 0:15:02.160 --> 0:15:05.960 is today. So you know, not a small amount of 0:15:05.960 --> 0:15:08.720 money for something like that, but still cheaper than any 0:15:08.720 --> 0:15:12.040 of I mean by half, cheaper than any relatively similar 0:15:12.080 --> 0:15:15.480 products in the market. Yeah. Yeah, and also it would 0:15:15.760 --> 0:15:19.320 ultimately save you money, assuming that you're using it properly. 0:15:19.400 --> 0:15:24.880 So pre orders within three days of of them talking 0:15:24.920 --> 0:15:27.400 about this, that within that blog post going up, they 0:15:27.400 --> 0:15:30.160 had sold out of all of their stock that they 0:15:30.200 --> 0:15:33.280 had planned on producing in the short term. So after 0:15:33.400 --> 0:15:35.840 three days of the store being opened, they shut it. 0:15:36.200 --> 0:15:38.600 They closed the store after three days with the explanation 0:15:38.640 --> 0:15:41.960 of guys, this had way more of a demand than 0:15:42.000 --> 0:15:45.000 we had anticipated. We knew that we had something potentially 0:15:45.080 --> 0:15:47.240 big on our hands, we didn't know that all of 0:15:47.280 --> 0:15:50.360 you would agree with us. And so they closed the 0:15:50.400 --> 0:15:54.000 store and they started working very hard on meeting the 0:15:54.040 --> 0:15:57.400 demands of the initial pre orders as well as figuring 0:15:57.400 --> 0:16:00.600 out how were they going to meet the expan into demand. 0:16:01.000 --> 0:16:05.120 And it wouldn't be until uh later in uh I 0:16:05.160 --> 0:16:08.560 think it was March two thousand twelve. So they shut 0:16:08.560 --> 0:16:11.360 the store down November two thousand eleven. It's not until 0:16:11.400 --> 0:16:13.440 March two thousand twelve that they're able to open the 0:16:13.440 --> 0:16:15.800 store back up again. I'm sure that most of that 0:16:15.880 --> 0:16:19.160 time was devoted to um to investment related issues and 0:16:19.560 --> 0:16:23.840 sure and maybe like uh, streamlining manufacturing processes, getting the 0:16:23.840 --> 0:16:26.520 supply chain in order, you know, lots of stuff that 0:16:26.720 --> 0:16:30.240 the background staff. Yeah, that's not terribly exciting to talk about. 0:16:31.200 --> 0:16:33.880 It's very important. It turns out that that's a big deal. 0:16:34.360 --> 0:16:36.800 And so, starting in May two thou twelve, the Nest 0:16:36.800 --> 0:16:40.520 Thermostatic became available in other places besides their online store. 0:16:40.560 --> 0:16:43.440 You could get it at Lowe's hardware stores by June, 0:16:43.480 --> 0:16:46.320 you could get it on Amazon. By a little bit 0:16:46.600 --> 0:16:48.640 later in the year, I think by October that year, 0:16:48.680 --> 0:16:50.480 you could get it Best Buy. You can even get 0:16:50.520 --> 0:16:55.800 it at the Apple online store. Yeah, so you know, 0:16:55.920 --> 0:16:59.120 there's obviously the relation. I don't know, I'll be right now, 0:16:59.200 --> 0:17:01.200 I don't know if that's to be the same now 0:17:01.240 --> 0:17:04.080 that Google has is acquiring Nest. Yeah, that's a compution. 0:17:04.359 --> 0:17:07.240 They have affirmed that they are going to um continue 0:17:07.280 --> 0:17:11.040 supporting ii OS product exactly. Yeah, It's not gonna be 0:17:11.080 --> 0:17:14.520 like suddenly your iPhone is unable to adjust the temperature 0:17:14.520 --> 0:17:16.080 of your home, right, that would be that would be 0:17:16.119 --> 0:17:18.720 a pretty ridiculously poor business decision. And I think I 0:17:18.720 --> 0:17:20.720 think the Google and Apple have both learned their lesson 0:17:20.800 --> 0:17:22.679 on that kind of I mean, you even had for 0:17:22.720 --> 0:17:24.960 a while, you had one person like you had the 0:17:25.000 --> 0:17:27.439 CEO of Google sitting on the board of directors of 0:17:27.440 --> 0:17:30.080 Apple for a while. Uh, that was Eric Schmidt. That 0:17:30.280 --> 0:17:32.840 that didn't last forever. He did a step down for 0:17:32.880 --> 0:17:36.000 the board of directors eventually. But the relationship between Google 0:17:36.040 --> 0:17:38.640 and Apple is not always contentious, even though they are 0:17:38.680 --> 0:17:42.240 direct competitors, at least in the mobile space and arguably 0:17:42.240 --> 0:17:44.400 in the computer space. But I don't think chromebooks are 0:17:44.400 --> 0:17:48.720 really that big of a competitor against at any rate. Yeah, 0:17:48.800 --> 0:17:53.000 at any rate. Getting back to Nest, So by October, 0:17:54.080 --> 0:17:56.920 remember this is just one year, not even a full 0:17:57.040 --> 0:17:59.680 year since they had announced it, because they they announced 0:17:59.680 --> 0:18:03.200 it lay in October two eleven. But in October twelve, 0:18:03.320 --> 0:18:07.199 the second generation of Nest Thermostat debuted and um, this 0:18:07.280 --> 0:18:10.879 one was you know, a little sexier, even it was thinner, 0:18:11.119 --> 0:18:14.720 so they were able to miniaturize some of the components 0:18:14.760 --> 0:18:17.600 make it even more compact, which is kind of astounding 0:18:17.720 --> 0:18:22.480 because they even increased the capabilities of the second generation. 0:18:22.520 --> 0:18:25.679 So the first generation worked with oh, I don't know, 0:18:25.720 --> 0:18:28.760 it was something like fIF HVAC systems out there, UH, 0:18:28.800 --> 0:18:31.240 and you had to check to make sure before you know, 0:18:31.280 --> 0:18:33.720 they stressed check to make sure that the one that 0:18:33.800 --> 0:18:37.920 you have, the system you have is UH is compatible 0:18:38.000 --> 0:18:41.040 with the system. UH. Well, they they were able to 0:18:41.160 --> 0:18:45.080 open that up to a much larger percentage of the 0:18:45.080 --> 0:18:49.240 the market. UH. They also were able to create a 0:18:49.320 --> 0:18:52.760 device that could work with UH HVAC systems that had 0:18:52.880 --> 0:18:55.600 two different capacities for cooling down your house. So some 0:18:55.640 --> 0:18:58.800 of them would work at a sometime and then knock 0:18:58.840 --> 0:19:03.200 it down to UH for just maintaining a temperature, or 0:19:03.240 --> 0:19:05.240 if it didn't need to, like if you're getting starting 0:19:05.240 --> 0:19:09.000 to approach the typerature, then it might might power down 0:19:09.000 --> 0:19:12.040 a little bit, but not turn all the way off. Well, 0:19:12.720 --> 0:19:15.560 those systems have two dedicated wires for that. There's one 0:19:15.560 --> 0:19:19.840 dedicated for there's one dedicate And the original nest did 0:19:19.840 --> 0:19:22.960 not have the capability to work. Yeah, you couldn't. It 0:19:23.040 --> 0:19:24.679 didn't have a place to plug both of those in 0:19:25.720 --> 0:19:27.800 the second nest did so you could do that. It 0:19:27.840 --> 0:19:30.280 also works with multi stage heating systems that works with 0:19:30.320 --> 0:19:34.480 systems that have humidifiers or de humidifiers and and across 0:19:34.520 --> 0:19:37.159 all energy modes, I mean if you've got gas or 0:19:37.240 --> 0:19:42.199 propane or electricity or yeah. So it definitely opened up 0:19:42.200 --> 0:19:44.960 the market a lot wider than the initial Nest did. 0:19:45.080 --> 0:19:48.439 And again it was smaller too, so um or at 0:19:48.520 --> 0:19:50.840 least it was thinner. It didn't project out as far 0:19:51.040 --> 0:19:56.960 from the wall. So yeah. They say that three out 0:19:56.960 --> 0:20:02.160 of four of their Nest customers opt to install it themselves, 0:20:02.560 --> 0:20:04.560 and that it can be installed within thirty minutes. They 0:20:04.560 --> 0:20:07.680 also have the Nest Concierge service, So if you feel 0:20:07.680 --> 0:20:10.680 like you are one of those one of who would 0:20:11.160 --> 0:20:15.280 uh likely electrocute him or herself were you to attempt 0:20:15.480 --> 0:20:18.640 to install it, such as, I don't know yours truly, 0:20:19.320 --> 0:20:21.240 uh not that I haven't Nest, but if I did, 0:20:21.240 --> 0:20:24.760 I would totally. I'm tech savvy, which means I also 0:20:24.800 --> 0:20:29.200 know it can kill me. Um. But yeah, you can 0:20:29.280 --> 0:20:33.879 actually uh opt for an additional fee to have someone 0:20:33.960 --> 0:20:36.960 come out and help you. So. Then in May two 0:20:36.960 --> 0:20:40.480 thousand thirteen, Nest made its first acquisition. It was a 0:20:40.520 --> 0:20:44.560 company called my Energy, which specifically builds products that let 0:20:44.640 --> 0:20:48.360 users track energy usage and savings. So the ideas by 0:20:48.400 --> 0:20:52.679 getting some more analytic data and some more collective uh products, 0:20:52.720 --> 0:20:55.680 they can make the NEST even more effective and make 0:20:56.160 --> 0:20:59.199 products further down the line that are able to incorporate 0:20:59.240 --> 0:21:03.000 some of this analysis so that you get an even 0:21:03.359 --> 0:21:06.320 more granular idea of what's going on and how you 0:21:06.359 --> 0:21:10.199 can save energy. Now, as we've seen in the past, 0:21:11.000 --> 0:21:14.879 there's a huge market for stuff that collects data and 0:21:14.920 --> 0:21:17.320 then analyzes it and presents it to you in an 0:21:17.400 --> 0:21:20.560 understandable way. Oh sure, and and basically any time that 0:21:20.680 --> 0:21:23.840 you allow these days, um, you know nerds, which are 0:21:24.040 --> 0:21:26.879 most of us, let's be honest and um to to 0:21:27.080 --> 0:21:31.960 min max their surroundings. Yeah. Fitness trackers perfect example, right, 0:21:32.200 --> 0:21:33.920 being able to sit there and say, like, now I'm 0:21:33.920 --> 0:21:37.560 able to track every single calorie that I intake and burn. 0:21:37.760 --> 0:21:40.120 I don't mean to make you check your force while 0:21:40.119 --> 0:21:42.359 you're doing that, but it's a little bit over a 0:21:42.359 --> 0:21:46.000 thousand today, I'm gonna work out. Okay, that's good. So yeah, 0:21:46.000 --> 0:21:49.399 I don't. I'm not wearing any of my accouchermal today, 0:21:49.480 --> 0:21:52.560 not even my pebble. I feel a little lost without it, 0:21:52.600 --> 0:21:57.120 to be honest, But anyway, so clearly there's a market there, 0:21:57.240 --> 0:21:59.920