Yes of course, but the reason I mentioned the hardware cost is because that scales linearly with demand and software cost does not. The market for these kind of

Yes of course, but the reason I mentioned the hardware cost is because that scales linearly with demand and software cost does not. The market for these kind of security devices is tiny right now but has the potential to be huge in the future. It would make sense for Google to sell their hardware at the lowest price they can in order to get people on board, after which network effects will ensure people stick with Google's services.