We heard some big news from Google’s founders yesterday regarding the change in organisation structure of the company. So… Why? What? How? Let me explain.
Until now, Google was this big company that bought other companies and made them work under them. But the truth is, it was difficult to manage, considering Google itself had a complicated structure. Google had bought large companies like Nest, and had a ton of sections within Google that worked on prototype products or products that were not of the masses as yet. There was no solid structure to govern these multitude of organisations within Google, hence the founders of Google built Alphabet.
What is Alphabet? Well, its just the umbrella organisation (“…collection of Companies”- Larry Page). “Google” is not the highest tip of the iceberg anymore, its one of the may ice blocks that make up the iceberg. Alphabet is what it the topmost level of organisation, and Google now is a subset of this organisation.
You mean Alphabet overthrew Google? Yes. Of course, Alphabet itself is headed by Larry Page (CEO) and Sergey Brin (President). Google will now work under Alphabet, and will be a large chunk of the organisation.
What does this mean to Google? Google is now headed by Sundar Pichai (CEO), earlier the head of product and engineering. He was the one who worked to bring Android updates, changes to YouTube, Google Search and the bunch of products we use everyday. After Alphabet, Google will remain in charge of only this internet business. Google will no more have Google X , Nest or Calico under it. Instead, Alphabet is what will head all these subsidiaries. Google X, Nest, Calico, Google Life Sciences, and Google are some of the subsidiaries of Alphabet.
Why Alphabet? Alphabet will be the management layer for all these companies. It’ll help attract more investors and provide for a more transparent, focused view for the companies. One of the reasons behind the name “Alphabet” is that it can be split as alpha+bet (Alpha is the investment return above benchmark), as interpreted by Larry.
Alphabet will also help incubate ideas - the X Lab will work on drones and self-driving cars, Nest will continue its thermostat business, Life Science will continue its research and Calico will continue to work on medicine that’ll extend human lifespan. Google was never really a tech company; now, it will actually be. Alphabet is what will take forward Google’s philosophy to not be another conventional company.
So that is Alphabet.
Alphabet’s web address is indeed unique, it is abc.xyz
Do visit the site for reading the letter written by Larry Page to completely understand the change.
Yes, we will get used to the name. Soon.
Congrats Sundar, you make India proud!