- ICYMI: Amazon spent about $ 1 billion last year to acquire Ring.
- The home router itself could be a useful point of integration for Alexa or other services.
Our thought bubble: This is not only a strategic decision for Amazon, but also a good time for Eero to try to go it alone in the increasingly competitive network hardware market.
- The company was hoping to turn to subscription services, such as security, but it still seemed like a difficult way to make a lot of money for a company that started solving a big hardware problem.
The big picture: While this agreement alone is not likely to elicit significant antitrust scrutiny, this is another example of Amazon expanding its reach into new areas.
- Some Eero customers have also consternation expressed that the details of their home network configurations, previously in the hands of a small startup, could be used for broader purposes by Amazon.
- L & # 39; Company says in a tweet that it "does not follow the Internet activity of the customers and that this policy will not change with the acquisition".
History lesson: Amazon had previously invested in Luma, its rival Eero, through its Alexa fund.
What they say:
- Quartz Mike Murphy: "My parents' house contains @geteero, @ ring and @amazonecho. They have a Premium Account and make purchases at Whole Foods on occasion. Jeff Bezos controls the suburbs now. "
- The rod Dieter Bohn: "I'm glad that Eero gets more resources, but I'd rather have at least one important gadget in my life that was not made by Apple / Google / Amazon / Microsoft or captured in their ecosystems . "
The bottom lineNo matter what Amazon has paid for (and that's not what it said), it will benefit not only by selling its network equipment, but also by providing customers with the reliable networks they need to other Amazon products and services.
Go further: A really smart house has to be more than connected
