What is Alphabet?
What is Alphabet? 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.
Essentially, this means that Google as we know it will be split off from the other divisions such as Life Sciences, Calico and its investment arms, Google Capital and Ventures, which will become part of Alphabet.
Why the change to Alphabet? Simply put, Google was too big for its own good and as each of its subsidiaries grew, the company would find itself stretched. Under the old structure, the company would need to plan strategically as a search giant/thermostat maker/operating system developer/internet provider but now, the slimmer Google can just focus on its core aims of providing Internet products and services to consumers, like you or me.
What does Alphabet mean for Google as we know it?
One of the biggest changes in Alphabet is the ability of each business to have its own CEO and this is likely to be one of the biggest reasons behind the new structure; as a division of Alphabet, Google is now able to run independently of the other businesses and focus purely on its end product.
The new structure
What does the new structure mean for the other companies inside the new parent company? It’s simple really; they will have their own CEO and mission and can execute this without worrying about the other businesses. One benefit of the restructuring is that businesses such as Google and Nest Labs are ready for other people to run allowing Page and Brin to take a step back and focus on products for the future.
Alphabet Soup
The restructuring of Google to form Alphabet (including a slimmer Google) may seem complex but it’s rather simple; the core Google business (including Search, YouTube, Android etc) becomes a slimmer Google, while its other businesses (Calico, Nest Labs, Venture etc) become part of Alphabet.
If you’re still not sure on the structure, CNNMoney have published this very easy-to-digest infographic showing the changes:
source:Android Authorithy
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