Cloud Native/NFV

Google Buys Xively for $50M to Build IoT Muscle

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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Susan Fourtané 2/20/2018 | 3:33:47 PM
Google cloud + IoT Google cloud and the power of IoT sounds like Google is up to something big.
Ariella 2/20/2018 | 3:49:42 PM
Re: Google cloud + IoT @Susan I'm sure it has particular plans, but it may be some time before we learn exactly what they are. Also not every big plan Google hatches works out -- at least not right away as per https://www.gadgetsnow.com/slideshows/googles-16-biggest-failures/photolist/59607928.cms
Susan Fourtané 2/23/2018 | 2:20:55 AM
Re: Google cloud + IoT Ariella: Yes, I remember many of those. Google is a company that I consider as an incubator. Google is constantly trying and developing new ideas. They don’t wait to test them in the lab first. They put their early stage projects out there for everyone to test and try. Some work, and some others don’t. That doesn’t stop them from keep on trying new things. And from many of those ideas that didn’t work for Google others take them, improve them, modify them, and create products that work better. It’s more important to have tried 16 times to develop an idea than to never try anything. Besides, I prefer to think positive about Google’s new plans. Why should I think they are going to fail before even knowing what they have in mind?
Ariella 2/23/2018 | 11:18:40 AM
Re: Google cloud + IoT Failures are a sign of not playing it safe, so that's a good thing. Scott Adams discusses his many failed business and career ventures in his autobiographical book. Experiencing failure doesn't make one a failure; it can make you understand what works and doesn't better.
Susan Fourtané 2/23/2018 | 11:09:36 PM
Re: Google cloud + IoT I agree. Even though failures are lessons that serve to improve something, and even ourselves, it can be discouraging to point out at someone’s failures when they are putting their energy and mindset on trying something with the hope that will work.
kq4ym 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.
Susan Fourtané 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.
Joe Stanganelli 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.
Michelle 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 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.
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