Google co-founders Larry Page and Sergey Brin have announced a massive overhaul in the company's operating structure, with a new name and a new structure.
Instead of being a standalone company, Google is now a subsidiary of 'Alphabet,' a parent company that will oversee all of Google's various initiatives, such as smart appliance firm Nest, the experimental incubator X Labs and Calico, which has set itself the ambitious aim of curing death.
Google itself will now be run by Sundar Pichai as the new CEO, with Page taking up a new role as CEO of Alphabet and Brin as the President.
In the press release, Page writes: "In the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant. "Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President."
He goes on to say that the new structure will "allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google" and having Pichai in charge of Google "frees up time for me to continue to scale our aspirations."
Page also outlines what Page sees as the key goals for Alphabet, which are as follows:
- Getting more ambitious things done.
- Taking the long-term view.
- Empowering great entrepreneurs and companies to flourish.
- Investing at the scale of the opportunities and resources we see.
- Improving the transparency and oversight of what we’re doing.
- Making Google even better through greater focus.
- And hopefully... as a result of all this, improving the lives of as many people as we can.
This certainly is an exciting time for everyone involved and although will surely be several kinks to be ironed out, it represents a brave new chapter in Google's already impressive story.
Update: Data analytics expert Miriam Cook from WhereScape has commented: “It doesn’t matter how many sheepskins you put over Alphabet’s various business divisions. Underneath it all lurks an efficient data predator that will continue to extract user information.
"Because Google (soon to be Alphabet) is beholden to the shareholder, the company remains under pressure to exploit this information to the full – which means across all its platforms - in the pursuit of advertising revenues."