Google Creates New Parent Company Named Alphabet

The new structure, which will be introduced in phases in the months ahead, is intended to give better visibility into Google's vast portfolio of projects and businesses, as well as areas outside of search in which the Internet giant has invested such as driverless cars and health-related technologies. Larry Page, co-founder and current CEO, will hold the same title at Alphabet, while co-founder Sergey Brin will become president. Sundar Pichai, who has led the day-to-day operations, will be promoted to CEO of Google.

Google's goal with this reorganization is to provide more transparency to shareholders, but this will have a positive impact for stakeholders across the board. The company's strategy for its mobile business, and more specifically for enterprise mobility,  has not always been entirely clear. In the past, trying to understand Google's strategy based on its earnings statements has been a fruitless endeavor, with different parts of the company lumped together. The lack of information has been a long-standing problem that has resulted in companies hesitating to embrace Android devices for their mobility initiatives. Google's product roadmap and partnerships with companies such as Samsung and Silent Circle signal there is a long-term plan in place for the enterprise and for the Internet of Things (IoT). The message, however, has not always been articulated in a clear manner if at all; this is only made worse by the fact that consumer products tend to steal the spotlight. This new structure should help the company's management by giving them more autonomy and providing visibility for the direction they are taking the different product lines.

451 Research Senior Analyst Raúl Casta?ón