No do not be misled by the title, it is not exactly the new Google. Google will still remain as Google, the search engine we all know and love. It is actually the most used search engine in the world and the most recognisable names in the world of technologies, and internet for that matter and it does not make any sense for the founders; Larry Page and Sergey Brin to dissolve the name and just change the whole thing to become Alphabet overnight. So what is Alphabet exactly? Well other than being letters of a language of course.
Alphabet was announced as a new company founded by the founders of Google themselves, in fact Larry Page is the CEO of the new company while Brin will be the President. Announced on the 10th of August, 2015 which was just a few days ago it is touted as a company that will have a collection of companies under its name. It will not be associated with any products or services directly other than owning the companies that make or provide them; simple. So of course naturally Google Inc. will retain its name and brand as Google but now owned by Alphabet Inc.
The question is if Larry Page is now the CEO of Alphabet, trying to manage and get companies with A-Z initials all under one roof who is going to take over the operations of one of the most valuable brands in the world, Google? We all remember Sundar Pichai, the man that recently headed the Google Android project. He is named the new CEO of Google Inc. How well of a job will he do? We do not yet know but we are expecting great things from him as the Google founders are.
With the formation and ultimate purpose of Alphabet Inc. though there are going to be some major changes to how Google is run. Yes the search engine remains as Google, yes the Google Inc. will still own Google as its brand, yes Nasdaq will still have GOOGL in its database. The difference is that Google’s life sciences divisions, products and projects division, their X lab, Calico and other businesses unrelated to the search engine business will be a separate entity run and owned by Alphabet. In fact each of them will have their own CEO to run them. This gives them the ability to run independently from the Google branding and in their own unique directions. Of course this allows Larry and Sergey to own more brands or at least to build more brands which is not always bad for the pocket. Therefore Google Inc. will be slightly smaller than before, slimmer to run than before without having any extras in the business, which is actually a good thing in some sense. It makes the company lighter and more focused towards improving the search engine we already thought is perfect.
Of course there are other speculations or arguments in the formation of Alphabet and Google as its subsidiary. One of them was touting it as a way to protect the Google name brand which is not wrong. This way Alphabet as the parent company owns the namesake and are able to legally protect it from being used in undesired contexts. Do note that some of the things written here are not exactly what Larry Page posted and could be a product of speculation. To read the full post from Google Blog you can find it here. A lot of people may think that this was an unnecessary move for the founders of the biggest name in the internet. In fact some people assumed that Google was being clumsy by not checking the name or website name’s ownership first; until Alphabet was formed the website alphabet.com was owned by BMW (it is still owned by them for your information). They did away with the website abc.xyz instead. So we say; good on you Google, very smart move, we like how you think.