- Utility Transformations
- Utility Transformations
- Residential Energy Innovations
- Smart Thermostats
- Nest
Departure of Nest CEO Not as Bleak a Picture as Widely Portrayed
Despite years of success, in recent months Nest has been the subject of a myriad of media stories highlighting technology glitches, internal struggles, and lawsuits. In December 2015, the New York Times covered a software glitch that drained the Nest thermostat’s battery and deactivated the device for an unconfirmed number of users, though the company was able to fix the issue for 99.5% of affected customers. In January 2016, it was reported that the Nest was leaking ZIP codes over Wi-Fi, and while this is not the most sensitive information, it may give consumers reason to be concerned about the security of Internet-connected devices. In May 2016, Honeywell and Nest settled their long-standing patent dispute, which began in 2012 when Honeywell sued Nest Labs, stating the company’s thermostats infringed on seven of Honeywell’s patents related to thermostat technologies.
To top off this wave of negative media coverage is the news of Tony Fadell stepping down from his role as CEO. This decision follows months of reports about internal struggles at Nest with regards to Fadell’s management style, though the official reason given for his departure is simply that it’s time to move on. Alphabet, parent company of Google, reports that Fadell will become an advisor to Alphabet.
Although the current media climate and Fadell’s departure seems to cast a bleak shadow over Nest’s future, the reality is that smart thermostat technology is still evolving, and fast-growing companies in this space (such as Nest) experience bumps along the road. It is important to keep a patient perspective, and take negative coverage with a grain of salt, because despite Nest’s issues, it remains a major player and leader in the smart thermostat market, and is likely to remain so for the foreseeable future.