Will Alphabet Inc (NASDAQ:GOOGL), Microsoft (MSFT), Cisco and Salesforce offer HAaaS?

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Home automation is a compelling opportunity that Alphabet Inc (NASDAQ:GOOGL) and many other technology companies are vying for, and they are aggressive. However, there is a segment of the home automation economy that is rapidly attracting the interest of providers, and it is Home Automation as a Service (HAaaS). The rise of HAaaS has been popularized by cloud-based Software as a Service (SaaS).

Through its Nest Labs, Alphabet Inc (NASDAQ:GOOGL) is keen to tap opportunities in the home automation and adjacent markets. Microsoft Corporation (NASDAQ:MSFT), Salesforce.com, Inc. (NYSE:CRM) and Amazon.com, Inc. (NASDAQ:AMZN) are also alive to the benefits in the home automation field, and they can leverage their clouds to round up opportunities there. Cisco Systems, Inc. (NASDAQ:CSCO), a prominent networking provider, can also leverage its networking and security capabilities to grab a piece of the burgeoning home automation market.

HAaaS could be a natural fit for Alphabet Inc (NASDAQ:GOOGL), Microsoft, Cisco, Amazon and Salesforce as they look to round up home automation dollars. These companies already have the infrastructure to enable them to render HAaaS. Additionally, customer reception of HAaaS is also likely to be strong if you consider what has made SaaS popular.

HAaaS drivers

The reason consumers and corporations are drifting to SaaS as opposed to on-premise software installation is that it offers multiple benefits. For instance, SaaS supports global accessibility through multiple channels, enables easy collaboration, updates are quick to come and administration is simplified. The same could drive rapid adoption of HAaaS.

With an increasing number of connected home appliances, monitoring of the system continues to become complex, thus raising the need for HAaaS solutions. Alphabet Inc (NASDAQ:GOOGL)’s Nest Labs is already a big name in home automation, and adding HAaaS as part of its home automation solutions could come naturally.

Easygoing consumers

Beside the need for a nimbler home automation monitoring system, millennials have helped popularize monthly payment for services that people used to pay upfront to own forever. As such, adoption of HAaaS could be faster as the market for home automation widens among customers already accustomed to monthly billing.

AT&T Inc. (NYSE:T), Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) are already offering HAaaS solutions. The entry of Alphabet Inc (NASDAQ:GOOGL) and the other technology heavyweights in the HAaaS is likely to accelerate the growth of the market.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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