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Google Alphabet will revolutionize the world

Google Alphabet will revolutionize the world

g-iconAs we all know by now, Google has a new owner: a holding company called Alphabet, run by Google founders Larry Page and Sergey Brin. We could say Google got a rebranding of the highest magnitude, but that’s not quite accurate. Alphabet is a holding company, and Google is just part of it. Their purposes are different, their corporate structures differ.

Basically, the company that was known as Google is now a collection of separate companies, owned by the new holding company called Alphabet. The “Google” brand is the largest of those companies, and it includes search, advertising, maps, apps, YouTube, and Android. The company’s less related ventures  – the biotech research project Calico, the Nest thermostat, the fiber internet service, the X lab, Google Ventures, and Google Capital — are all now separate companies housed under Alphabet.

So what does all of this mean for users and for the industry? I personally think this change is as creative as the company itself, and it will continue to revolutionize the world. Here’s how:

  • More focus on creativity, less worries about the stakeholders

With nearly $70 billion in annual revenue, Google was facing dual challenges of sustaining its growth through innovation and meeting the expectations of its shareholders. Also, Google’s investors were requesting greater transparency, which can lead to pressure to cut back on uncertain investments or create premature visibility.

This is why Google’s leaders are breaking the company into a collection of innovative organizations that provides their leaders the freedom to innovate without near-term financial constraints. This way, Google executives can focus on the products and services that make money for the company with greater agility against competitors. Also, Google’s research projects will get their own executives and their own singular attention.

  • More financial transparency

For some time, Wall Street has been pushing Google to be more transparent financially. However, the company has been restrictive on the subject. That could change now. All of the businesses underneath the Alphabet umbrella are expected to segment financials by their fourth-quarter earnings report, which should make Wall Street happy and could boost Alphabet’s stock.

  • No significant changes for the end-users

Despite all the discussions surrounding this change, end users don’t have to worry about Google search, Maps or their Android phone for now. All the road maps they have in place will continue, at least for the foreseeable future, which is about 18 months in this industry. Things like search and Android have been the money makers for Google, and the company has no reason to shake them up.

  • Innovative leaders for innovation leadership

One of the most significant aspects of Google’s reinvention as Alphabet lies in its capacity to recruit and retain amazing creative talent, something most innovative companies have been unable to do. In the world of high tech, long term investors bet on the leadership of the companies, sometimes ignoring the oscillations in stock price. Having brilliant innovation leaders is what makes Google, Apple and Facebook so successful, and investors know that.

No changes for Google Cloud

Throughout the great number of announcements there was a rumor that the Alphabet takeover will mean great changes for Google’s Cloud Platform. It turns out, not so much. The company confirmed that Google Cloud Platform will remain in its current structure within Google. Other Google products like Chrome, Android, Maps and Mail are staying within Google too.

In the last 25 years, Google position itself as one of the world’s leading technology companies by almost single-handedly creating Web searching as we know it. It’s now time to watch Google Alphabet continue the work!

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