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Tech giant Google, with the humble beginnings of a simple search engine, has recently ventured out into less familiar technologies, such as self driving cars, a drone delivery system, and research into medical technology to name a few. These all seem very distant ventures from a humble search engine, and the company has come under mild scrutiny in the past. However, Google thinks they have the solution. The recently revealed their plans for a corporate restructure, and in the process creating a new parent company, which they have called Alphabet abc.xyz - yes that is the URL.
Google will retain all of their web-based ventures such as the search engine (of course), YouTube, Google Chrome, Google Docs, and so on, as well as other ventures such as Android. All other developments and technologies, such as Google Fibre and Wing (Google’s drone system) will become part of Alphabet, possibly also run by other subsidiaries of Alphabet.
The change, says Google founder Larry Page, will allow google to place an increased focus on their own services and opportunities, rather than trying to diversify and spread themselves too thin.
“This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google,” he said in a blogpost.
Also, the it appears that the change was also fuelled by investors, who were often left in the dark over where their money was being spent, due to the large diversity of the ventures that Google was taking part in. After the restructure, investors will have a much clearer understanding about where their money is being spent.
For the user, what does this change mean? Not much really. Some of Google’s products may now be licensed under “Alphabet” rather than “Google”, but that isn’t an issue to most. Even then, the large majority of Google’s most used products will remain as part of Google in the restructure, so the majority of users may not even notice the restructure. If you own shares of Google, they will automatically become shares of Alphabet, but will retain the ticker symbols GOOG and GOOGL.
Whatever the outcomes of this restructure, the result can only be positive for Google. Greater focus on their own products can only mean better products for the end user.
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