Google Buys Xively for $50M to Build IoT Muscle

Mitch Wagner
2/16/2018
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Google has entered into an agreement to buy Xively, a division of LogMeIn Inc., for $50 million, to build strength in the Internet of Things.

"This acquisition, subject to closing conditions, will complement Google Cloud's effort to provide a fully managed IoT service that easily and securely connects, manages, and ingests data from globally dispersed devices," according to a post on Google (Nasdaq: GOOG)'s Keyword blog on Thursday signed by Anthony Passemard, product management, IoT and Pub/Sub, Google Cloud.

"With the addition of Xively's robust, enterprise-ready IoT platform, we can accelerate our customers' timeline from IoT vision to product, as they look to build their connected business," the blog post says.

The sale means LogMeIn is focusing on customer engagement, unified communications and collaboration (UCC) and identity access management, according to a post on the LogMeIn blog signed by Bill Wagner (no relation), LogMeIn president and CEO. Last week, LogMeIn announced a deal to acquire Jive Communications to join LogMeIn's collaboration apps including GoToMeeting and join.me together with Jive's cloud telephony. LogMeIn provides the popular identity app LastPass.


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"So the obvious question is, does this mean LogMeIn is exiting the IoT?" LogMeIn says. "Well, if you mean the IoT connectivity platform space, yes, we're leaving it. We believe that Google Cloud, now armed with Xively's team and great technology -- and backed by their platform and developer heritage and reach -- are a far better fit for the future of platform leadership. What we will continue to do is invest in our Support-of-Things initiatives for products like LogMeIn Rescue, Bold360, GoToAssist, Central, Rescue Lens and SeeIt -- all offerings that will continue to help our customers support new types of connected products, as well as the connected consumers that use them."

Google is paying $50 million for Xively, which generated $3 million in revenue and $13 million GAAP expenses for LogMeIn, which is sending 45 employees to Google's payroll as part of the transaction, according to a LogMeIn earnings call Thursday.

LogMeIn acquired Xively in 2014 for $12 million.

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Joe Stanganelli
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Joe Stanganelli,
User Rank: Light Sabre
3/2/2018 | 5:12:15 AM
Re: Google cloud + IoT
@Michelle: Yeah, if you're a Boston-area startup, Kendall Square is the place to be.

Well, once you've actually made it, to a certain degree. A lot of super young startups that go right to pricey Kendall Square quickly fizzle out.

In addition to that, a lot of major tech companies have big offices there. The IBM THINKcenter (which is technically a little ways away from Kendall Square, but close enough). The Microsoft NERD Center. And so on.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Light Sabre
2/28/2018 | 10:06:54 PM
Re: Google cloud + IoT
@Susan: Indeed, that's why I place limited trust in rankings of things like "happiness" or "smartest" or whatever... often because the particularized metrics don't account for the individual ways that various parties seek to improve their positioning.

It's real easy to achieve fame for being the "happiest place" or "smartest place" or whatever if you're essentially Peaksville in that episode of The Twilight Zone.
Michelle
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Michelle,
User Rank: Light Sabre
2/28/2018 | 3:08:10 PM
Re: Google cloud + IoT
That is very impressive. I didn't realize there was SO MUCH tech activity in the area. MIT was a given, but I had no idea the depth of tech innovation.
Susan Fourtané
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Susan Fourtané,
User Rank: Blogger
2/28/2018 | 3:48:10 AM
Re: Google cloud + IoT
Wow, Joe. That letter was impressive. Obviously, that’s someone with strong ethics. I think it speaks is good part about how everything about human communications and interactions is turning into automated responses, automated thinking (if you can call it thinking anymore), depersonalization masked under a faux “personalization” stamp. All what I know about the super happy employees at Google come from super happy employees, yes, and some of those “the best companies to join” or something like that. But, according to this HR person, it would seem it’s more like Google cherry picks its employees rather than having real open positions. I am a bit disappointed, I have to admit. As for the students and best test scores, not long ago there was a similar case in England about a school pushing out unsuccessful students.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Light Sabre
2/27/2018 | 11:06:46 PM
Re: Google cloud + IoT
@Susan: Well, to be fair, it's easy to brag about having super-happy employees when you culturally marginalize and push out (if not outright fire) the employees who aren't happy. (See, e.g., here.) It's the same way countries like Japan get to have students with some of the best test scores -- by pushing out the students who aren't successful.
Joe Stanganelli
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Joe Stanganelli,
User Rank: Light Sabre
2/27/2018 | 11:03:03 PM
Re: Google cloud + IoT
@Michelle: The Boston/Cambridge area is huge for tech. For all the talk about Boston being a contender for Amazon HQ2, Boston, Cambridge, and surrounding towns already have a substantial Amazon presence (especially after Amazon purchased Kiva and renamed it Amazon Robotics).

In particular, Kendall Square in Cambridge is touted to be "the most innovative square mile in the country" because of all the tech companies, pharmaceutical companies, and startups in and near the neighborhood -- along with the presence of MIT.
Michelle
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Michelle,
User Rank: Light Sabre
2/27/2018 | 9:59:33 PM
Re: Google cloud + IoT
A long commute sounds terrible. I didn't realize Xively was based in Boston. You guys have a lot of interesting web companies in the Boston area...
Joe Stanganelli
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Joe Stanganelli,
User Rank: Light Sabre
2/26/2018 | 9:46:21 PM
Re: Google cloud + IoT
@kq4ym: I'm particularly interested if Xively will keep its Boston office or if Google will send the Xively team to Google's offices across the Charles River in Cambridge, Mass.

As geographically close as the two locations are, a change like that could make for some commuting headaches for some of the workers.
Susan Fourtané
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Susan Fourtané,
User Rank: Blogger
2/25/2018 | 10:54:59 PM
Re: Google cloud + IoT
I think it will be better. Google employees are some of the happiest employees on the planet. Google also has a reputation of having some of the best office spaces.
kq4ym
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kq4ym,
User Rank: Light Sabre
2/25/2018 | 7:49:38 PM
Re: Google cloud + IoT
It will be interesting to watch the development and I'm too wondering how the 45 employees added to the Google payroll will fare after settling in with the new bosses. Wonder their salaries and benefits are better or worse now, I would hope better.
Page 1 / 2   >   >>
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