Ford’s Next Big Thing Isn’t a Car

Ford’s partnership with ADT is just one indicator of the massive growth potential of the connected home.

Jul 20, 2014 at 11:00AM

I've traveled to some exotic places to better understand the huge Internet of Things (IoT) trend, including the Arctic Circle in Finland. But some of the greatest growth in IoT is happening right at home.

Inside the home, that is.

And companies you wouldn't imagine – like Ford (NYSE:F) -- are getting involved.

To better grasp the huge stakes in home automation and control, consider the price Google paid for Nest -- $3.2 billion. Other tech giants are also buying up similar companies, all in an attempt to win the lion's share of revenues once virtually every device in our homes is connected to the Internet.

Even Ford is getting a wheel into the connected home through its partnership with ADT (NYSE:ADT). Yes, drivers, now you can control your lights and locks at home through your Ford SYNC in-car connectivity system and the ADT Pulse smartphone app.

It makes sense
As Ford notes in its partnership announcement, "...everything in our lives is becoming increasingly interconnected." Considering your car is becoming more akin to a rolling living room, it makes sense that it must eventually be just as connected as your home – and connected to your home.

In this video from the 2014 International CES in Las Vegas I chat with Tom Kerber about Ford, ADT, and the connected home. As the director of research in the areas of home controls, energy management, and home networks for Parks Associates, Kerber says there is dramatic growth potential in this area, especially considering that only a small percentage of houses currently are making use of the technology. 

Why this new technology is a "real threat"
Ford is a player in another technology that will radically change several industries. At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted it's threatening the Oracle of Omaha's bread and butter. And it's no long a question of "if... but when," according to the industry's foremost research firm. Find out how you can cash in on this technology BEFORE the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. All the details are laid out in a new FREE investor alert from The Motley Fool. Click here now to learn more!

Rex Moore owns shares of Berkshire Hathaway, Google (A shares), and Google (C shares). The Motley Fool recommends Berkshire Hathaway, Ford, Google (A shares), and Google (C shares). The Motley Fool owns shares of Berkshire Hathaway, Ford, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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