How Google Will Benefit from Alphabet

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Google founders Larry Page and Sergey Brin came out with a shock announcement yesterday when they revealed a huge reshuffle at the technology giant. Google, as a corporate entity, is being completely reworked under a new holding company, called Alphabet. Larry Page will run Alphabet as CEO with Sergey Brin as President.

According to Page, Alphabet will enable the company to be “cleaner and more accountable”.

It’s a simple premise, as with the alphabet, Google and its constituent parts will now be able to work as separate business entities, much like the 26 letters that form the alphabet.

Google, as the largest company within the Alphabet stable, will now be led by Sundar Pichai as CEO. Page said:

Sundar has been saying the things I would have said (and sometimes better!) for quite some time now, and I’ve been tremendously enjoying our work together. He has really stepped up since October of last year, when he took on product and engineering responsibility for our Internet businesses. Sergey and I have been super excited about his progress and dedication to the company. And it is clear to us and our board that it is time for Sundar to be CEO of Google.

Other companies under the Alphabet umbrella will include:

  1. Calico
  2. Fiber (internet access)
  3. Google (Search, Maps, YouTube, Android, Ads, Apps)
  4. Google Ventures (Venture Capital investing)
  5. Google Capital (investment fund)
  6. Google X (auto-driving cars, Google Glass, internet by balloon, moonshots)
  7. Life Sciences (including glucose sensing contact lens)
  8. Nest (smoke alarms, home camera, thermostats and connected home devices)

The biggest change is that Page and Brin will step away from the day-to-day operations at Google. What this will mean for Alphabet remains to be seen, but new innovations are likely. For Google, Android, YouTube et al, there is likely to be little evidence of change right now.

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