Google and Microsoft Shut Down Home Energy Management Efforts

In the last few days, both Google and Microsoft announced that they were shutting down their home energy management initiatives. In the case of Google's Powermeter effort, the company said it was shuttering it as it didn't see the scaling it was expecting to see. In the case of Microsoft's Holm effort, the company said it was getting out due to the slower than expected adoption of its technology. In both cases, more so in the case of Google, these developments are due to lack of understanding of the utility industry. It's less to do with their technology or product capabilities.

Consider the case of Google Powermeter for instance: the company was arrogant in its approach to the utilities. Instead of working together with the utilities, it took the tack of "We are Google - smarter and bigger than you; so, we will tell you how you should work in this field" - as anybody who has worked in this market knows, that's the fastest way to doom a product. Companies like Opower, Efficiency 2.0, and others offer similar products and have found notable success doing the same things.

In a way, it's disappointing that these companies have decided to flee this dynamic market rather than redesign their offerings and business approach to match to what the market needs. Innovative companies like Google and Microsoft have the resources and skills to accelerate acceptance of DSM by the mass market and one can only hope that they will rethink their decision in the near future.