By Chris
Crum
As I'm sure you've heard, Google is
going
through some major changes in in
structure. Google itself now has a parent
company. Even after sleeping on it, it's still
sinking in. Many, many businesses rely on Google
for their well-being in part if not almost
entirely in some cases. It's worth considering
how the new structural changes might impact
everyone else going forward.
First things first. In case you missed it for
some reason, Google
announced Monday
afternoon that it has formed a new company
called Alphabet, which will be a parent company
to Google, among other things. Instead of Google
being the parent to all of the company's
endeavors, Google will sit alongside some of
those under the bigger umbrella of Alphabet.
Larry Page will no longer be the CEO of Google.
He'll be the CEO of Alphabet with co-founder
Sergey Brin running it alongside him as
President. Executive chairman Eric Schmidt will
now hold that role for Alphabet instead of
Google. CFO Ruth Porat will hold that role for
both (Google is after all still the main
moneymaker here). Longtime Google exec Sundar
Pichai becomes the new CEO of Google.
Alphabet includes: Google, Calico, Nest, Fiber,
Google Ventures, Google Capital, and Google X,
which includes things like Glass, self-driving
cars, Wing (drones), Robots, and Internet
balloons. These are to all be operated separate
from one another instead of all being under
Google itself. Google as a company still
includes the core search and advertising
business as well as Android, Chrome, YouTube,
Maps, etc. Presumably it will retain Gmail,
Drive, Cloud Platform and various other
Google-branded web-related products. For most
businesses and consumers, it doesn't sound like
much will change on the surface.
But just because there won't be any obvious
changes on the surface, that doesn't mean the
rest of us won't feel the effects from the move
to Alphabet going forward. Everybody relying on
Google products, like search, advertising,
YouTube, apps, etc., now get to experience all
of these things under new leadership.
Pichai has been with Google since 2004, and is
the obvious choice to take on the new role. He
has led efforts from Chrome and Chrome OS,
Google Drive, Gmail, Google Maps, and Android.
As of this past October, he has been Product
Chief at Google. At that point he reportedly
took over Google Research, web search, Google
Maps, Google+, advertising, commerce, and
infrastructure.
In the announcement, Page had this to say about
him:
This new structure will allow us to keep
tremendous focus on the extraordinary
opportunities we have inside of Google. A key
part of this is Sundar Pichai. Sundar has been
saying the things I would have said (and
sometimes better!) for quite some time now, and
I've been tremendously enjoying our work
together. He has really stepped up since October
of last year, when he took on product and
engineering responsibility for our internet
businesses. Sergey and I have been super excited
about his progress and dedication to the
company. And it is clear to us and our board
that it is time for Sundar to be CEO of Google.
I feel very fortunate to have someone as
talented as he is to run the slightly slimmed
down Google and this frees up time for me to
continue to scale our aspirations. I have been
spending quite a bit of time with Sundar,
helping him and the company in any way I can,
and I will of course continue to do that. Google
itself is also making all sorts of new products,
and I know Sundar will always be focused on
innovation—continuing to stretch boundaries. I
know he deeply cares that we can continue to
make big strides on our core mission to organize
the world's information. Recent launches like
Google Photos and Google Now using machine
learning are amazing progress.
In other words, Sundar is taking the reins, and
Page won't be as hands on with Google and all
the things that have the ability to directly
affect your business, though he'll still be
there for guidance as needed. Also, Pichai and
crew already have some unspecified new products
in the pipeline (When doesn't Google have new
products in the pipeline?). It wouldn't make a
lot of sense to speculate on just exactly how
things are going to be different under Pichai's
direct leadership, but change is change, and
businesses are likely to feel the effects in one
way or another. Probably many ways.
At the end of the announcement, Page listed the
things he's excited about, and one of these is
"making Google even better through greater
focus".