Sundararajan Pichai : The new CEO of GOOGLE ! Every Indian science/tech related person is going crazy right now. I know I am. He was just like us, and now he is the C E O of Google ! (I have to say it again and again.) An IIT Kharagpur graduate from Chennai is now the CEO of the global giant GOOGLE. I went ballistic and read almost every blog/news/magazine article regarding this ( then started writing this ! 😛 ).What blew my mind even more is the formation of this new company Alphabet.inc !
Confused ? How did the inspiring read about Pichai lead to a random new company . I was too.
Google….. you shall never stop amusing me. I wondered all day why they would do this. Why would they want to create another brand name ? “Google” is already so huge. Why bring in the “Alphabet.inc”. I just told myself ” Google does random crazy shit” ( I am an avid follower and admirer of their R & D moonshot division called GOOGLE-X so I know how crazy they can get, or so I thought !).
And then I read a few more articles, one of them went on to say that “the surprise news sent shares of Google up as much as 7 percent to $708 in after hours trading”. It’s all a money game after all. This reminded me of an earlier read about how GOOGLE-X is a non-profitable R&D project which investors usually frown upon. Things started to make sense now. So I read a couple of other articles and was over-joyed to realise that my conclusion did make sense. Yes. Let me explain.
So this is how the story goes.The name “Google” will now be associated with the core search engine, Google Maps,advertising, Apps, Android and YouTube only. Everything else will be Alphabet.inc . So all the non-profitable, futuristic, unicorn , moonshot projects will be dissociated with the name GOOGLE and associated with the name Alphabet.inc ! Google is now a subsidiary of Alphabet.inc . Alphabet.inc is a holding company of a number of other subsidiary companies including- google-x, google fiber , google ventures , google capital , Calico , Nest Lab , Youtube and Android. How many of them keep the name “google” only time will tell. Page is the CEO of Alphabet.inc and Pichai the CEO of Google. Clearer? I hope so.
Nobody ever knew how much of the money was going into GOOGLE-X and this bifurcation kind of makes things more transparent for the skeptic investors who never saw what a magnificent division the GOOGLE-X was ! ( I wonder what it will be called now ? Alphabet-X perhaps ? O.o ) So anything that doesnt make money is not Google anymore ?
So I googled alphabet.inc and it already has a wikipedia page. Things move so fast !!! This led to a couple of more articles and some fun facts.
- A whole history of the journey from google to alphabet.inc is very explicitly mentioned in http://www.wired.com/2015/08/google-mean-alphabet-looks-like-now/ .( I love articles on wired ! )
- abc.xyz – the alphabet.inc webpage is taken from a famous tv series called silicon valley. ( I know what series I am starting now ! )
- Moonshot projects spook investors ! ( I was being nice when I said they only frown )
- Holding company is a complicated structure that Wall Street frowns upon. ( Someone is always frowning, arent they now ?)
Looks like a good move, keeps the investors happy and the insane projects insane !
PS – I wrote this article after a long break from blogging. I wrote it while reading the articles. This whole fiasco has inspired me and given me new zeal in life ! ( Yes zeal is the word I just used 😛 )
Links I found useful and informative :
https://en.wikipedia.org/wiki/Alphabet_Inc. ( The references in this link give more links …. too much information alert ! )