Nest co-founder Matt Rogers announces exit from Google

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The move will see the two join forces to "combine hardware, software and services", read an excerpt of a post on Google's blog.

It certainly makes sense for Nest to merge with Google's hardware group, especially since the two are already working together.

Google acquired Nest back in January of 2014 in a deal worth $3.2 billion in cash - not bad for a company that was only launched three years earlier. The result has been a dominant position in the market segment, and one that's the envy of Google and many other companies. However late a year ago, there were reports that Google could be looking to merge Nest with its hardware team. "Meanwhile, Google has sold tens of millions of products for the home in just the past year, as more people use the Google Assistant to listen to their favorite music, control their connected devices, and get useful information about their day", says Google.

Nest has shipped more than 11 million products since first becoming available in 2011, Fawaz said. However, despite having a new parent company, Nest has primarily operated independently during this time.

That's why many raised their eyebrows when Google announced it was acquiring Nest to begin with.

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Nest had previously highlighted (and still does, as of this morning) its independent relationship from Google in its privacy FAQ, noting that the company had a "separate management team, brand and culture".

Smart home manufacturer Nest is being taken under the wing of Google.

A united front could be helpful in competing with the other ubiquitous digital helpers of today - Amazon's Alexa and Apple's Siri. To fend off the competition, Google needs better integration AI technologies and consumer products, and this is what it is doing by integrating Nest.

The more daunting task is to topple Amazon's Echo speaker line and the increasingly ubiquitous Alexa voice assistant. As a thermostat originally created to shave down a customer's bill and help the planet in the process, Nest has been reimagined as one cog in a larger smart home machine.