A mobile alarm clock developer, a company that makes robots, a group that turns out smoke alarms and now smart contact lenses: Internet search giant Google seems to be on an odd roll.
However, all the forays Google has made have a common element: the ability to connect, an attribute that will - in time - allow the search giant to unite more elements of peoples' lives with the Internet, increasing the flow of data.
Google, always seen as an innovator, is already looking to the future, planning projects that could give it spectacular rewards in the next decade or two. The company, which dominates search, is gearing up for a time when that is no longer enough to keep the money coming in.
And Google can well afford to invest in the future ? it is very profitable, which gives it the luxury of time to play around, and the money to make purchases, notes World Wide Worx MD Arthur Goldstuck.
In the third quarter of last year, the giant turned over $14.89 billion, and made a net profit of $2.97 billion. Although it spent almost that amount on capital items - a trend it expects to continue - it still ended the period with $14.8 billion in cash and cash equivalents.
On the cards
Google's latest foray, as reported by Reuters, is to test a contact lens equipped with tiny chips and an antenna, which will allow diabetics to monitor their blood-sugar levels. This will negate the need for diabetics to prick their fingers and test drops of blood during the day, the wire service reported.
The search giant has also acquired Nest Labs - a company that provides home tools such as smoke detectors and thermostats - for $3.2 billion. Earlier this week, Google CEO Larry Page said the Nest team was "already delivering amazing products you can buy right now - thermostats that save energy and smoke/CO alarms that can help keep your family safe".
"We are excited to bring great experiences to more homes in more countries and fulfil their dreams."
Nest CEO Tony Fadell adds Google's support will help drive the company to "build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world".
Google's acquisition of Nest followed on its purchase of Bitspin, a Swiss mobile app developer, which makes Timely, a blend of alarm clock, stopwatch and timer. Bitspin declared itself "thrilled" to join Google, where it will "continue to do what we love: building great products that are delightful to use".
Byron Lotter, a portfolio manager at Vestact Asset Management, points out Nest has "so many" potential synergies with Google products. He cites Google's purchase of Comcast - which allows people to control all household electronics in the house wirelessly - as an example.
"Basically, through Nest technology you could control every single device in your house through your phone. Change the temperature of your fridge, turn on the sprinklers, who knows maybe even tell your robot to wash your dishes one day."
Google's Nest purchase followed its reported purchase of Boston Dynamics, which builds advanced robots with "remarkable" behaviour that includes mobility, agility, dexterity and speed. The engineering company specialises in building dynamic robots and software for human simulation.
Boston Dynamics started out as a spin-off from the Massachusetts Institute of Technology and was founded in 1992. Its designs, listed on its Web site, include BigDog, a quadruped robot for travel on rough-terrain; Petman, an anthropomorphic robot for testing equipment; Rise, a robot that climbs vertical surfaces; and SquishBot, a shape-changing chemical robot that moves through tight spaces. The company also develops tools for human simulation.
Touching lives
Goldstuck says all these purchases have a unifying feature that could see them becoming part of what is being called the Internet of things. He explains every electronic device has the ability to connect to the Internet.
Google wants to connect items that make sense, add value and can solve problems, while being a good business, says Goldstuck. He notes key areas of dramatic technological growth in the next few years will come from automation and health.
Goldstuck is seeing both these sectors coming together through what Google is doing. He explains Google wants to create more traffic by creating more ways to collect information.
Google wants to own information and the connections between information, says Goldstuck. He adds it will end up owning our lives as a by-product in this quest and will have to remind itself of its mantra to do no evil.
The search giant is massively profitable, and has the time and money to invest in ideas that may only pan out in 10 or 20 years, says Goldstuck. He adds the company is not depending on its continued dominance of the search space.
Lotter adds there are concerns that Google is "seriously" sacrificing margins by shifting to more capital-intensive businesses, but he believes "this is the way of the future".
"As a technology company, if you don't constantly stay ahead of the curve, you will find yourself in huge trouble. I think it is best to embrace it as both a consumer and an investor. At the end of the day, if the product makes your life easier it will have customers because in our fast-paced lives, time has become one of the most important commodities."
Goldstuck adds for the innovative company, these acquisitions are about pushing the boundaries of technology and trying new things. He says it is as if Google is saying: "Let's play with the future and see what happens."
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