Google to create a new parent named Alphabet. Search operation remains in a subsidiary that will be named … Google. Other investments will be managed in other subsidiaries.
Google founder Larry Page says they must keep separate the various new subsidiaries as of the fourth quarter. It should mean that the reorganization will in earnest later in October.
Why does the Google all this trouble? The business has after all worked pretty so far.
In addition to becoming clearer to analysts it is possible to distinguish two main reasons. One reason is that castling is to improve the focus on Google’s traditional core business.
The idea is to a slightly smaller Google should have full focus on not just search and ads , but also on the maps, apps, YouTube, Android and Chrome. It may seem to be widely circulated on the range, but there are two common denominators for the different products and services: They are all based on Web as an enabler and they contribute directly or indirectly to withdraw money.
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The other main reason to the reorganization is to be committed to it at the throng of innovation projects at Google. By pursuing projects into separate companies, the hope is that they will not interfere with the core business.
You can really talk about the great spread in the range, or how about smart thermostats, smoke sensors, cameras, autonomous cars, Internet connections, biotechnology, life extension technology, robotics, artificial intelligence and nanoparticles to detect cancer?
You can see two common denominators. This is partly about products and services that in some sense are intended to improve the world, both about products and services for which a web browser is not the primary interaction surface from users. A third common feature is that it is uncertain if and when Google will make money on the projects.
Was not Google to focus on different things, even with the old structure? Presumably experiencing some Google employees that it is unclear what they’re working on the business. Is there a web-focused printing press and a dynamic innovation company that can do anything? Now it becomes clear. Those who work on what will Google continue to devote themselves to making money on the web, the other Alphabetföretag dedicated to all the other projects.
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A risk with reorganization is now divided into two parts which operates in apart: Boring Google earning money and fuzzy-Alphabet which can be found on just about anything.
My guess is to the reorganization still turns out well. I think that those who remain on the subsidiary Google will worry less for a lot of crazy inventors will squander the money they take in. And the inventors do not have to feel like a burden to the traditional business. If an innovation project is successful it will be much easier to give it its own identity and manage it as a separate business. It should be positive.
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