Are you still wondering what the heck is up with all this Alphabet talk? It may seem confusing at first, but it’s really quite a simple concept.
As we explained in our thorough Alphabet run-down, this was pretty much done to separate Google from all its subsidiaries, as the Search Giant was getting too large for its own good. With each company operating on its own, under a different leadership and personalized strategies, each division can now thrive in a much more specialized manner.
Not to mention, investors would be more interested in small companies that will grow fast and strong. To a giant like Google, these smaller companies’ successes don’t mean as much in terms of revenue.
- Alphabet divisions are free to return to China, implies Brin
- Alphabet announces Google’s Q3 results – revenue up
- Alphabet to expand its language
- Google owns Alphabet… the full domain and all!
But there is another factor to consider here, and it’s one our fellow dreamers at Google seem to be more focused on. Google founder Larry Page took the stage at a Fortune Magazine dinner in San Francisco to tell us a bit about what they want to see coming from Alphabet, and the key focus was innovation. Even more so than business or money (or so he says).
The major point here is that it would be a mess if Google tried to run all of its acquired companies. Aside from Search and Android, Google would have to operate Calico, Fiber, Ventures, Capital, Nest and many other subsidiaries to come. It’s just not what Google is “good at”, so they thought it was better to give these companies a bit of breathing space.
Under the Alphabet system, engineers and scientists would have more freedom to create the awesome products they impressed Google with, to begin with. Not to mention, these inventors probably don’t like the idea of working with a company, and would feel more inspired otherwise. There’s plenty of annoyances stapled to working with a large company like Google.
“Companies have pretty bad reputations. It’s not like a lot of people wake up in the morning and say, ‘I want to go work for a company.’ They do it because they have to.” -Larry Page, Google founder
The key point we have to take away from this is that the switch to Alphabet was not about the consumer; it was about employers and employees. This is why Google chose the name “Alphabet”, apparently. They didn’t want it to be too catchy for the user, as it could overshadow Google. As a consumer, you should see little to no difference in the way you interact with these services.
Now we just have to play the waiting game and see how all these Alphabet companies take advantage of their new freedoms. The future looks bright and full of letters. You can be sure we will spell them all here at Android Authority as soon as any detail emerges!