Knock, Knock. Who's There?

Amazon Buys Ring, Continues Its Smart Home Battle with Google

Last year, we described video doorbell company Ring as the "belle of the ball". The front door is a great place to enter the smart home and the California firm had made a name for itself as a do-it-yourself home security player.

Ring has now been acquired by Amazon for a reported price of over $1 billion. Ring has been the main company behind the creation of the connected doorbell market in the US (and beyond), and has been expanding further into home security with connected cameras and smart lights. It's been a clever strategy.

The acquisition highlights the ever-intensifying battle for the smart home, particularly between Amazon and Google. Each has a different end-game, but both want to be all around the consumer in the home, from the front door to the driveway.

In 2017, Google announced its own smart doorbell, taking the concept further by adding biometrics (see Facial Recognition and Smart Doorbells). It seems like an intriguing product but has yet to start shipping.

With its Echo smart speaker, Amazon has quickly become a dominant player in the smart home space. Users of the device can control a variety of light bulbs, thermostats and security systems simply by talking to its Alexa assistant.

The $1 billion sum may prove to be a small price to pay if it can help Amazon solve a growing problem facing its retail business: package theft. Estimates suggest as many as 30 percent of US consumers have had a parcel stolen from their doorstep or apartment building hallway, something that doorbell cameras such as Ring's could help deter.

Amazon has already ventured into solving this problem with its Key service, which is now available in 37 cities in the US. It allows a delivery person to leave packages within a customer's home. Ring's smart security products will not only instantly expand Amazon's addressable market for this type of solution, but may also leave users less wary of ordering on its site and requesting delivery when they aren't home.

Furthermore, Ring is already compatible with Amazon's Alexa and works extremely well with the Amazon Show and Spot devices. These gadgets have an integrated screen, so users can ask Alexa to show them a live feed of the exterior of their house through Ring cameras.

Both Google and Amazon are looking to grow their range of home solutions by connecting everyday devices to each company's respective cloud services. Smart assistants are middleman in the strategy. With its purchase of Ring, Amazon is reinforcing its efforts to dominate the fast-growing home security market.

As the competition between Amazon, Google (and Apple) escalates for market share in the connected home, users will have to carefully select where they buy their products and what services they support. As we've noted before, selecting an ecosystem can be like choosing a religion. You may quickly find you become more dependent on one particular type. By grabbing ownership of Ring, Amazon will be hoping it can strengthen its position as a leading smart home device provider in an effort to get the jump on Google, Apple and others.

Sign up to our free Daily Insight service here.

This entry was posted on March 9th, 2018 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed or you can leave a response.

Posted By Raghu Gopal On March 9th, 2018

(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
Completion of the specification for standalone #5G is a major milestone, but the mobile industry must temper expect…
Follow CCS Insight
Shaun Collins
RT @mobileworldlive: #China regulator #MIIT pledges timely #5G licence issue @Huawei @CCSInsight
Follow Shaun
Ben Wood
Full @EE smart home portfolio now officially launched. Products from Apple, Google, Hive, Honeywell, Logitech, Nest…
Follow Ben
Martin Garner
@Telefonica new Movistar Home, a sort-of Echo Look competitor. "Re-defining the home phone". Neat integration with…
Follow Martin
Marina Koytcheva
@NetgemUK Many thanks for the invitation! Unfortunately I won't be able to join, but wish you good luck at the launch!
Follow Marina
Nicholas McQuire
@jlesaicherre @myrstad Correct. It’s mainly the consumer app used for work purposes.
Follow Nicholas
Paolo Pescatore
@bassilelkadi @Qualcomm @QCTonyOC @Bernard_P @ConorCampbell How about an analyst family party for the #WorldCup final
Follow Paolo
Angela Ashenden
@salesforce buyers may still come from sales/Service LOB, but increasing shift to seeing sales / Service Cloud as t…
Follow Angela
Kester Mann
RT @CCSInsight: Completion of the specification for standalone #5G is a major milestone, but the mobile industry must temper expectations:…
Follow Kester
George Jijiashvili
@anshelsag Did you leave the Master AI on or off?
Follow George
Laura Simeonova
RT @benwood: P20 devices testament to Huawei's ambition in smartphone market. Consistently improving design, capabilities and appeal of its…
Follow Laura
Katie Taylor
A really interesting look at the inefficiencies of the human body
Follow Katie

Recent Blog Posts

Blog Post
5G Can Stand Alone Standalone 5G Specifications Approved by 3GPP Not long ago,... Read more
Blog Post
Microsoft Targets Amazon's Sweet Spot Its New Technology Could Allow Retailers to Build Checkout-F... Read more
Blog Post
Robots to the Rescue Airbus Employs Robots to Speed Up Its Production Rate For y... Read more
More blog

Latest Company News

Blog Post
Angela Ashenden Joins CCS Insight to Lead Business Collaboration Research Enterprise Research Coverage Continues to Expand ... Read more
More news