Amazon seems to be moving in on the home security scene with their newest plans to acquire Ring, the manufacturer of video doorbells and other home security features. This follows Amazon’s acquisition of another smart home security company, Blink, earlier this year. Amazon supposedly has also expressed interest in August, a company also specializing in smart home security, specifically smart door locks.
Ring’s acquisition is notable as it will mark Amazon’s second most expensive acquisition ever at a projected $1.2 billion, whereas Amazon’s $14 billion dollar acquisition of Whole Foods takes the gold.
Alexa, Lock the Front Door
In acquiring these companies, Amazon certainly is looking to expand their IoT connectivity; the smart tech and smart home security devices would most likely be able to be controlled through Amazon’s Alexa technology, and there would probably be room to expand the home security companies’ offerings in terms of what could be automated.
What’s the Future of IoT and Connected Home Security?
Amazon’s acquisition of Ring could mark the first moves to try to secure the home security market and outperform top competitors such as Google and ADT by offering lower prices, which they are known for consistently doing, and greater interconnectedness of devices. Amazon entered the home security sphere in their own right by releasing the Cloud Cam, but future acquisitions allow them to compete with companies like Google’s Nest and the offerings of ADT, who has been a long-time leader in home security. In addition, having a strong hold on the smart home security sphere could allow them to collect even more data from the users of this technology to better understand their customers and learn how to better approach their e-commerce focus.
Overall, acquiring Ring should be an indicator that IoT devices are going to be more prevalent in the near future, and that this area is one to watch. According to Business Insider, in 2025, over 55 billion IoT devices will be in use, compared to the 9 billion currently in use today. In addition, around $15 trillion in aggregate IoT investment will occur between now and 2025.