Oh and on the Nest acquisition itself: I think the author is right. As the number of people joining the internet reaches saturation, it's no longer a high-growth category. But the number of devices—things—is limitless. I think this is a small mark in history as companies will turn their focus towards the internet of things.

Watches, Glass, tablets: all of these are only secondary displays. Nest, it strikes me, is one of the first successful pure-play "internet of things" companies. I think that's why they commanded their price tag.