It’s official!! The paperwork is filed. Google has rechristened itself into a holding company by name Alphabet. Google, which is known to be a pioneer in Intelligent Search has grown over the years and today, has a wide outreach of various technologies:
the Android Operating System, the backbone of cell phones;
AdWords or AdSense, the Advertisement related ventures;
Blogger, the blogging site;
Calico, the life extension project;
Chrome, the Browser;
Google Maps or Earth, the Geographic tools;
Google Watch, the Android based smart watch;
Google X, a technology house for Self-Driving Cars, Google Glass, etc.;
YouTube, the video sharing site
Project Fi, etc.
Alphabet is set to be an overarching company for Google and all other ventures. It stands for A to Z, covering the entire gamut of opportunities. CEO Larry Page noted, “We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alphabet (Alpha is investment return above benchmark), which we strive for!”
The last statement from Larry is significant as it is addressed to the Investor Community in general. Over the years, investors were not clear about how their investments were used by Google. They were unsure whether the investments were pumped into Cash Cow, Google, or frittered out to various initiatives of Google, which were not profitable. Even Wall Street had shown its displeasure with the amount of money used in Google’s moon-shots. The creation of Alphabet is expected to bring in the transparency in the Accounting process for all the companies owned by Alphabet.
Alphabet also would enable an eco-system of start-up companies under its umbrella. Each company would require to attract investors on its own without depending on Google or any other company. It has to be seen, whether projects like Fiber, which are of intermediate nature between wild moon shots and the reliable money makers, are able to carry out with their agenda effectively. This activity was earlier justified by cheaper access of high speed internet to drive more eyeballs to Google Search, and more usage of High Definition and High-bandwidth services like YouTube. Project Fi, which has also come about offering a replacement for cell phone service in a Wi-Fi type of way.
Forming Alphabet has also helped Google in retaining talent and enabling the leaders to grow further within the organization. While the promoters, Larry Page and Sergei Brin are now part of the holding company, Sundar Pichai, who was the Product Manager at Google has been promoted as CEO of Google.
As they say, the only constant is change. Google has self-innovated itself into Alphabet, like its other marquee innovations. Google wants to own the Alphabet, and we’re looking forward to see what’s next for Alphabet.