News of Google’s new parent-company named Alphabet has already made its way around the world. As soon as Larry Page, Google’s chief executive, made the announcement on Monday, people started wondering about how the ropes would work under the new order.
“Alphabet Inc“– alpha might be referencing to the investment term meaning “returns above benchmark” – will have Page as CEO and co-founder Sergey Brin as president.
According to the announcement, Google will be split in various divisions, as the main target of the revamping is to allow the giant tech company to be strictly focused on developing products and improving brand experience. At the same time, other subsidiaries under Alphabet will also enjoy a lot more independence.
Page offered a few glimpses of what Alphabet could be focused on, mentioning that developing models on life span sciences studies or well-being research might be a good place to start. Since Page is stepping up to the role of CEO for the new parent-company, Sundar Pichai was nominated to become CEO of Google.
It is long since Google has expanded way beyond being just a search browser, currently occupying a top spot in the company of the most far-reaching tech giants in the world. Page also mentioned that the overhaul is designed to restructure management, allowing them to administer independently the products and services that aren’t related.
On one hand, Brin cited the incredible progress that some of the company’s new services have made, referring to Google Now and Google Photos, adding that the revamping will allow them to grow even more. Google Now has become an indispensable tool for a lot of users who want their information personalized and at the tip of the finger with a single tap.
On the other hand, Jan Dawson at Jackdaw Research pointed out another facet of the move, saying that the transformation will point out to some of the more unprofitable initiatives that Google launched, which might lose some shareholders funding now that they are on their own and in plain sight.
Google has seen an aggressive expansion and being in the Internet search business is no longer the sole focus. Recent years have brought various new projects, some more successful than others (see: Google Glass, self-driving cars, or the Project Wing drone program).
It’s no wonder that the company has made a name for itself and that it is now brushing shoulders with Microsoft and Apple, some of the most revered names in the industry.
In a company blog post, Page explained that transparency and management over the company’s diverse business ventures are two of the reasons that made this transformation happen.
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