G is for Google, A is for Alphabet

Google has announced major restructuring of their company structure. The new holding company Alphabet will be the parent company to the different Google businesses, including Google itself. Larry Page will run Alphabet as CEO, with his partner Sergey Brin as President. They will have a “strong CEO who runs each business” under Alphabet, most notably Sundar Pichai as CEO of the Google business.

 

Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. Alphabet is about businesses prospering through strong leaders and independence.
Official Google Blog: G is for Google

 

From startup to fully corporate mode with individual business units under an umbrella holding, Google has come a long way. They will have the common funding and resource allocation, combined with a greater independence of unrelated businesses for more flexibility. It will be interesting to see what will be added to the Alphabet umbrella in the future.

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