Google Reorganizes as Alphabet


Alphabet

On August 10, 2015, Google announced that they are restructuring their business so that they are under the umbrella of new parent company Alphabet. This is big news but don’t worry, the Google search engine will still exist.

"This is what they should have done years ago," said Jeff Kagan, an independent industry analyst. "They've gotten out of control. As Google gets bigger with all of these different businesses, they get sluggish. They've gotten too big with too many arms and they're going in too many directions. This should deal with that."

Google is planning to trim research projects such as the famous Google Glass, self-driving cars, smart contact lenses, and drones so that they can direct their attention to more important matters. These matters are more core Internet-related businesses.

On top of this, the projects that are still existing will have their own assigned executives, thus, allowing them to singularize their attention.

"It allows Google, the Internet property, to be more fiscally responsible and focused on what that company does," said Brad Shimmin, an analyst with Current Analysis. "Because they were pulled in so many different directions, [co-founders] Sergey [Brin] and Larry [Page] had a lot to contend with, in terms of prioritization and coordination. Leaving Google on its own should make the company more successful because executives won't have to worry about so much else. They won't have to worry about the success of Google Glass and how they might affect the whole business."

With all of this going on, Sundar Pichai, who has previously been vice president at Google and oversaw not only Google apps, but also those for Android and Chrome, has been named the new CEO of Google.

"With Pichai at the helm, I am hoping to see a Google more focused on all things Google as we've known it,"
said Patrick Moorhead, an analyst with Moor Insights & Strategy.
"Pichai will need to make yet another run at being successful in social media, which has eluded Google so far."

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