Google recently surprised the world by announcing that it has become a company called Alphabet. David Crookes explains why this isn’t a late April Fool’s joke
What is Alphabet?
Alphabet is the new name adopted by Google as an overarching brand for its vast and ever-growing range of products and services. It was announced in a blog post by Google co-founder Larry Page (bit.ly/page379) and it will replace Google Inc as the publicly-traded entity. All shares in Google will automatically convert to the same number of shares in Alphabet but, as Page says, the name may take some getting used to.
You bet. Why is it called that?
Page said the name Alphabet “means a collection of letters that represent language, one of humanity’s most important innovations”. He described it as “the core of how we index with Google search” and added, less clearly, “we also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!”. Whether Alphabet will have a tagline similar to Google’s “Don’t Be Evil” remains to be seen.
Will we be “alphabetting” the web, then?
Oh please. You’re not suddenly going to refrain from “googling” (even though Google’s lawyers actually attempted to stop such a term from becoming an eponym in 2003, fearing Google would become less of a brand in its own right). Google will remain the name of Alphabet’s search engine business and we will still have Google Maps, Google Chrome and Google Mail (well, Gmail), among others. Google has been with us since September 1998 and its brand is too strong to abandon now.
Why change to Alphabet, then?
It’s fair to say Google has its fingers in many pies and has long ceased to be a mere search company. Its Calico Labs department, for example, which launched in 2013, is conducting research into ageing by studying molecular biology, genetics, drug development and medicine. Then there’s Life Sciences, which works on health and biotech projects, one of which includes a deal with the pharmaceutical giant Novartis to create a smart, glucosemeasuring contact lens for people with diabetes.
So these teams will work independently?
They will. The idea is that each component of Google will form its own company, headed by its own CEO. This reduces damage to the ‘brand’ if a particular project proves unsuccessful. And if something amazing emerges from one of the teams that can be spun into a company of its own, this can happen more easily than before.
Where do Google products fit in?
Some of technology’s most popular brands – Android, Search, Play, Chrome, Maps, Gmail and so on – are forming a new internet-focused Google division, headed by Sundar Pichai rather than Larry Page. This includes YouTube, which was previously a separate entity under the stewardship of CEO Susan Wojcicki, who Page singled out for special praise in his announcement.
Who is Sundar Pichai?
Pichai was the product chief at Google Inc until the announcement of Alphabet heralded his widely applauded promotion. He has been with the company since 2004 and was responsible for leading on some of the company’s top products, including Chrome, Drive, Gmail and Maps. In March 2013, the Android division fell under Pichai’s control. His elevation to the top position within the Google part of Alphabet is therefore no surprise, since he is one of the company’s rising stars and has been given increasing levels of responsibility. But it also gives hope to other employees because by splitting the organisation into smaller chunks, Alphabet allows future stars to rise more easily.
So how will this affect me?
To be honest, it probably won’t. The decision to rebrand the entire company as Alphabet is purely a business one and relates to a radical internal restructuring. But because Alphabet wants to shake things up – getting too comfortable is counter-productive to fostering ideas for future growth, it says – the new way forward should lead to more innovative products that will end up benefitting us all. We can expect to see many more socalled ‘moonshots’ being created as various divisions look to experiment, safe in the knowledge that they can do so independently of each other.
What on Earth are moonshots?
Moonshots are ambitious and groundbreaking projects that are created with no clear idea about their potential for making money. They are given the go-ahead without a full assessment of viability or risk and they simply have to address a problem with a radical solution using cutting-edge technology. Under the new system, one part of the Alphabet business could take a risk without affecting, for instance, the Google suite of products. This way, Alphabet can appease investors. Page says the restructure will improve the transparency and overview of what the company is doing.
Who will be running Alphabet?
Page will become Alphabet’s CEO and Sergey Brin, Google’s other co-founder, will be President. They will constitute the overseeing link with the other companies and will both benefit from the move because they will no longer be seen merely as the people overseeing a search-engine company that exists to sell adverts, but as the heads of an organisation that has the power to do immense good, as we’ve seen with Google’s achievements in health. By handing the reigns of the company’s flagship brands to Pichai, Page and Brin are free to work on products of the future.
But what businesses will be formed?
Alphabet hasn’t nailed down the specifics, but they will be diverse. In the last few years, Google has been testing driverless cars, drone delivery, broadband balloons, high-speed internet access, smart home products with its acquisition of thermostat maker Nest, and much more, and some of these projects could be merged. When the dust settles and the reorganisation is complete, Page says Alphabet will feel “cleaner and more accountable”, benefitting too from transparency in reporting financial results.
Does Alphabet have a website promoting its businesses?
Yes, it has a rather basic effort at abc.xyz, which tells you very little about how the restructure will work. If you’re wondering why Alphabet chose this rather creative URL, it’s because BMW owns alphabet .com and uses it for the running of its fleet services company (we imagine it’s been getting a lot of extra hits of late). Meanwhile, Twitter user Chris Andrikanich owns the @alphabet handle, and is expected to cash in for megabucks.
UNCOVER THE HOOLI EASTER EGG
Buried deep within the announcement of Alphabet on its website abc.xyz is a cool, very well hidden link. By clicking the full stop in the middle of the eighth paragraph, visitors are taken to a brilliant, mocked-up website of the fictional company, Hooli (hooli.xyz).
For those who don’t know, Hooli is the company which heavily features in the hilarious HBO comedy Silicon Valley, which is screened on Sky Atlantic in the UK (bit.ly/silicon379). It features a rather hapless character called Nelson Bighetti who, in the series, is lauded as a genius and rapidly promoted as part of an attempt to take control of an up-and-coming service called Pied Piper.
It’s fair to say that the Easter Egg will be lost on a great many people but what is interesting is that hidden links are actually in violation of Google’s Webmaster Guidelines (bit.ly/webmaster379). Hopefully, Sundar will give Larry a good ticking off!