Why is Google becoming Alphabet

Why is Google becoming Alphabet

Why is Google becoming Alphabet

by October 5, 2015
google becomes alphabet

Source: mobilesyrup.com

How many times in a day do you probably come across the word ‘Google’? Turn on your computer, open up a web browser, and there it is right in front of you. You hardly remember the last time you said, “Let me search it on Google.” In fact you always ended up saying, “let me Google it.” Such was the impact of the largest search engine on our lives.

But, all of this has now changed. The beloved Google that you knew about has become Alphabet. All shares belonging to Google now belong to ‘Alphabet’. Google will be operating as a subsidiary.

However, with all of that being said not much is expected to change. Then why this massive step you might say. Well, the decision would allow each company under ‘Alphabet’ to focus on a specific function.

Why the name Alphabet?

When asked why the name ‘Alphabet’, Larry page who will now be CEO of the Alphabet said that alphabet stands for language, the most important innovation made by the humanity. It is also the core of how the company indexes Google search. Secondly, the ‘alpha’ in the ‘alpha-bet’ also represents the investment return above the benchmark that the company strives to achieve!

google alphabet

Source: alluremedia.com.au

Google would be heading operations for Android, YouTube, Search, Apps, Ads and Maps. Alphabet, on the other hand, will primarily focus on functions related to Google Fiber, Life Sciences, Google Ventures, Google Capital, Nest, Google X, Drone Deliveries and City-Wide Wi-Fi. Sundar Pichai who has been successfully managing the Google’s day to day affairs will now step into CEO’s role.

In easy words, companies that are not closely related to the internet products offered by Google will be a part of the new ‘Alphabet’.

What would ‘Alphabet’s role be as a parent company?

Each business unit operating under Alphabet will be headed by a CEO, with Larry Page and Sergey Brin determining the compensation. As a result, these units will now be independent and can focus more towards developing their own brands.

What about the new website?

If you think the new website would probably be ‘www.alphabet.com’, you are wrong. In fact, the website is ‘abc.xyz’. Now, why couldn’t ‘Google’ just buy ‘alphabet.com’ and make things easy? Well, the domain is already owned by the German car manufacturer BMW and it is in no mood to sell the domain to ‘Alphabet’.

alphabet website

But, why isn’t BMW selling off its domain name? What difference will it make? Now, in case you didn’t know, BMW uses the domain to display its fleet service offering. The business currently operates in around 18 countries and over 530,000 cars are provided to several corporate entities. Isn’t it a big deal? So, no wonder why BMW would want to hold on to its domain name.

alphabet company structure

Source: mybroadband.co.za

According to Page and Brin, ‘Alphabet’ is the best bet they can make and probably is the future that ‘Google’ actually needs to be. Some critics believe that this may not be the right step and would most likely affect the currently popularly of the search engine giant.

However, tech analysts say that, ‘though the news came in as a huge surprise, it does make complete sense. Things would be streamlined and we could see more new stuff from Google.

But, all of this shouldn’t interfere in the way you have been using Google. In fact, the company would be looking forward towards further improving your online experience, as it has been doing since its inception.