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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— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Follow me on Facebook Editor, Enterprise Cloud News

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Susan Fourtané
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Susan Fourtané,
User Rank: Blogger
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.
Ariella
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Ariella,
User Rank: Light Sabre
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
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50%
Susan Fourtané,
User Rank: Blogger
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
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Ariella,
User Rank: Light Sabre
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
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Susan Fourtané,
User Rank: Blogger
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.
<<   <   Page 2 / 2
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