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of ascending the CMMI levels from 1 to 5. The costs of adoption
and the productivity and quality gains from changing from water-
fall development to Agile, RUP, TSP, or any other more recent
methodology can easily be shown to clients. Having specific results
available makes technology selection and deployment more effect-
ive.
The software industry has a bad track record for running late and
delivering software with so many bugs or defects it does not work
properly. Predictive analytics can help to reduce or eliminate these
endemic problems.
Nest Labs
Nest Labs is creating an interesting niche by using embedded software combined
with a form of artificial intelligence to optimize home heating and cooling via
“smart” thermostats. The thermostats are connected to the web and only work in
homes or offices with wireless connectivity. Because wireless homes are becom-
ing common, the potential market for the Nest devices is growing rapidly.
However, products like the Nest thermostat are clearly aimed at affluent cus-
tomers. Low-income families spend a much higher percentage of their disposable
incomes on heating than do the wealthy, and they often do not have wireless sup-
port and probably could not afford the $249 for a Nest device.
This company was founded in Palo Alto, California, in 2010 by Tony Fadell
and Matt Rogers. As energy costs increase, home heating and cooling are becom-
ing major costs for low-income families and annoying costs for everybody else.
While programmable thermostats have been available for years, the Nest ver-
sion includes some new features based on embedded software. The initial product
was the Nest Learning Thermostat, which not only could be programmed but
could also collect historical data and learn from and monitor the surrounding en-
vironment.
The physical thermostat devices use standard connections for most HVAC sys-
tems and can be installed either by local service personnel certified by Nest or
by homeowners. The wireless feature of the Nest thermostats allows downloading
of software releases as needed. The wireless capability also allows customers to
make remote changes to the thermostat settings via smartphones. For example, if
a user decides to take an unplanned weekend trip in winter, it is possible to lower
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