
Nest's economics don't work. Why IoT devices should be sold as services - dconrad
https://medium.com/@dconrad/why-iot-devices-should-be-sold-as-services-f73951871006
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raybb
If Nest moved to a subscription model how do you propose they handle people
who stop paying? Do they cut off remote access and write off the cost of the
product as a loss?

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Someone
They could follow the model of phone companies: they only 'give' you a phone
if you sign up for a x year contract, may let you pay some sum up front, and
cut off your use if you stop paying.

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derricgilling
The economies change a lot when you can book that revenue up front. Many SaaS
startups want to lock in year long contracts even if the total amount is less
for this reason. That revenue can then be used to pay salaries, etc. Not
everything has to be or should be paid by VC dollars.

Nest may have figured they could build a larger ecosystem in the IoT and Smart
Home space and charge monthly at some later point but didn't materialize.

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iask
Those who can afford a Nest can also dump it if they choose not to pay. I love
my Nest. Bought it one month after the launched. Would I pay $10.00 a month
just to reulate my heat only? Hell no! There are so many new alternatives in
this space - not as intelligent or sexy looking though. Maybe I build my own.
The algorithm is not hard to implement. I am just lazy.

Still love my Nest. Sexy, smart, set-and-forget. But we only mingle in the
winter.

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464192002d7fe1c
I, also, am 100% nest (four thermostats). I, also, would never pay
10$/month/thermostat for this service.

I am not shitting on nest here, but I will say there are others out there now
who are as or more intelligent though definitely none as sexy.

That said, this whole article is basically "news at 11, IoT device maker says
people should pay more for their IoT devices, buys boat"

