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Jim Cramer: The Google-Nest Deal Is Huge

Now, lots of people have been talking about a thermostat that's linked to your personal computer or to a device that allows you to control it remotely. Similarly, others have tried to link your home-security system. These are all part and parcel with the notion that you want control over your house in order to know what's going on when you are away, that you want to be able to get in without fumbling with keys and to be able to control the temperature and, therefore, your heating bill.

I was quite taken, for example, by ADT's (ADT) pulse system, which allows you to remotely control your fire-monitoring and your burglary protection. However, we know that AT&T (T) is also getting into that game and can afford to undercut ADT. This is one of the reasons why that stock has been such a dog.

I know, also, that Con Edison (ED) has a device made by Honeywell (HON) that it gives away with free installation -- which is rather unbeatable vs. installing an expensive Nest thermostat yourself. If that catches on, I don't know a soul who would pay for a Nest thermostat, and Google will surely have overpaid, at least for that portion.

Still, the fact remains that Google is buying a device that captures still one more aspect of the Internet in a way that makes your handheld device more valuable. The move shows that the company truly understands the psyche of the consumer: That is, anything that makes the consumer more connected to her device and the Internet with a Google interface has to be considered a win. That's especially considering that the most important do-it-yourself home retailer has already said that the customers can't get enough Nest smoke detectors.

What can I say? It's certainly a better use than Google's going to get from keeping the cash in the bank, and if it's part of a better mousetrap that drives you to a Google-powered device, then it is most definitely a win. -----

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long Google and Honeywell.

Editor's Note: This article was originally published at 6:10 a.m. EST on Real Money on Jan. 14.

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