Nest CEO Steps Down After Google Rearranges

Google acquired smart thermometer maker Nest in 2014. Nest, founded by ex-Apple engineer Tony Fadell, has experienced a ton of shakeups lately. New reports from C-NET indicate that Alphabet, Google’s parent company, even shopped the company around to Amazon at one point. Given Google and Amazon’s current relationship, that’s honestly quite surprising.

Nest CEO Marwan Fawaz

Fawaz was installed in 2016 after Fadell left the company. According to anonymous sources from within Nest, he wasn’t exactly an office favorite. Many felt that Fadell was a visionary, and his brand of leadership inspired the team. His Apple-inspired product design led to clean, effective products. Fawaz, on the other hand, proved to be a bit more of a “logistics guy.” It’s not so much that he was disliked, according to sources, as he was un-charismatic.

Many sources stated that they felt as though Fawaz was more of a “numbers guy,” someone who was more suited to logistics than leadership. In fact, Fawaz is moving to an advisory position within Alphabet, which indicates that his bosses felt the same.

Google’s Fight to Dominate Smart Homes

In February, Alphabet rolled Nest back into the fold after leaving them as a semi-independent entity since 2015. In the interim since Google acquired Nest, the smart home market has heated up significantly. Amazon holds nearly half of the market, its Alexa virtual assistant being a household name. Google, by contrast, only holds about a quarter of the market. This is something they wish to change, of course.

Amazon doesn’t sell Google’s smart home products, generally. Nest thermostats and some other Nest devices appear on the site, but Google’s proprietary Google Home is nowhere to be seen. That has certainly limited Google Home’s reach, and the company has been playing catch-up in that regard. However, Google has also pursued upgrades for its assistant through its incorporation in their smartphones. Google Pixel phones and Android OS both support Google Assistant, just like Google Home. This gives them a unique edge over Amazon, one that they plan to leverage.

However, the relatively unstable Nest situation has certainly not helped them achieve smart home domination. In that light, Fawaz’s redeployment as an advisor makes sense, as Google reworks the hierarchy of their smart home division. The heat is on, and they want to win the race with Amazon.