Alphabet will be taking over as the head of Google’s projects.
Typically, companies are formed under a larger company, thus becoming their child. This bigger company is referred to as the “parent company” in this case – they have multiple ‘children’ or businesses that they own and operate. While this smaller company still remains its own business with the same operations, it is owned and therefore ultimately controlled by the big parent company.
Google has been the biggest technology company in the world, constantly growing and receiving billions of users every day and trillions per year. It doesn’t sound like this type of company would ever be controlled by another company, but it’s happening: Alphabet is the new parent company of Google, which will officially take over later this year.
This could make you nervous, confused, or optimistic that this must be a smart move because Google hasn’t messed up yet. And you have a right for all of this thinking. In fact, this new parent company has been created by Google. Yeah, I held that one off from you for a bit, but it still has some shock value. Google, being a brand name, is trying to maintain their Google brand in the same light that it has been, yet move onto further progressive technological advances by creating a company that can operate away from the Google name under a larger company canopy.
This way, Google can stick to its guns without worrying about all of this new action going on. Of course, they will continue to advance and perfect their search engine as one of the most important tools in the world right now, but they won’t be making cars.
Alphabet is taking on all of the ventures that Google has had interest in and been releasing recently, such as Google Fiber. Google Fiber is the company’s own internet and TV service. There are also Google Cars that you might have heard of, prototypes of which feature automatically driven cars. Not automatic shifting, but cars that actually drive themselves. It’s these types of pursuits that Alphabet will take on in order to form separate companies under one big company name. This way, the smaller companies can grow individually and contribute as a whole to Alphabet.
It is a smart move, especially as the Google name has become so great for itself, but hasn’t seen much success with any of its products, most of which have different manufacturers. Google’s search engine is its big hit. Now, however, the “makers of Google”, or whatever you want to call Alphabet, can now play presenter to the world with its future endeavors. Their new products can have their own catchy names, logos, designs, and companies, but with the same leaders and technological expectancies as their star child, Google.