The “What” and “Why” of the latest change in Google’s cooperative front!

October 5, 2015

We’ve all heard about something major happening at Google this year but there’s still tons of confusion among the masses about exactly what happened and why? If you are also wondering the same, then read on to find out what happened to Google that has turned so many heads.

So what is happening?
Google has now formed a new parent company with the name of “Alphabet” which will now manage different segments of the company under an umbrella based structure. Products like “Search, Maps”, “YouTube” and “Android” will work under the Google name. Other features and Google’s other products will work in another division, providing a clearer autonomy for the company. Google’s cofounder Larry Page and Sergey Brin will be in charge of this new parent company with Larry Page acting as the CEO while Sergey Brin will be the president. Sundar Pichai will now be the CEO of the Google segment of company who was previously the senior vice president of the product. Each new division or company under the umbrella company “Aphabet” will now have their own CEOs.

Why the change?
A clear hierarchical structure in the Google family allows for greater transparency for investors by allowing them to easily understand which sector of the company is working on what kind of projects and hence allows them to make smarter and easier decisions about investments. The company will now also be able to report results specific to the core business for the first time, thus allowing investors to see where exactly the money is being used and how much are they getting out of their investments.

And that’s it! There is nothing major that end users like you and I would experience from this corporative restructuring as Sundar Pichai has already been heading Google for quite some time now and his new post is merely a status update with mainly the same responses. We have however experienced a change in Google’s logo throughout various applications but for now that seems to be it! It seems the clearer hierarchical structure will allow Google and Alphabet to efficiently deploy resources towards various sectors of the company, making it possible to allow for more focus and more transparency in each field.

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