Menu
Menu
From Google to Alphabet: What is behind the rebranding

From Google to Alphabet: What is behind the rebranding

While the move is primarily intended to make the company’s operations more transparent, it has implications for each of the core businesses, says Ovum’s Francesco Radicati.

Inside Google's headquarters in Mountain View, California.
Inside Google's headquarters in Mountain View, California.
Google’s rebranding as Alphabet spells a tighter focus for core businesses, reports Ovum as it looks at the latest restructuring of the Internet giant.

While the move is primarily intended to make the company’s operations more transparent, it has implications for each of the core businesses, says Francesco Radicati, senior analyst at Ovum.

The core Internet, search, and Android businesses will continue to operate under the Google name, managed by Sundar Pichai. Pichai had previously managed a range of products including the Chrome browser and Android operating system.

Unsuccessful ventures won’t be associated with the Google name, while successful ones will be more easily tied into the overall brand once they’re established.

Francesco Radicati, Ovum

Google’s Capital and Venture businesses will be organised with their own CEOs, as will Google X, the “moonshot lab” responsible for new projects like the driverless car.

Removing the moonshots and connected home activities from Google’s portfolio should enable it to focus on increasing its penetration in key markets such as India and China, says Radicati.

Read more: The payments market is ripe for disruption - by both startups and traditional providers: Ovum

The latter is a major market for so-called “forked” versions of Android, which don’t connect to the wider universe of Google services, effectively putting the company in competition with itself.

What about Thread and Nest?

He says what is less clear is the implication for Google’s IoT-related businesses.

He notes projects such as Thread and Nest were not mentioned in CEO Larry Page’s letter announcing the restructuring.

Read more: Adobe and IBM lead in enterprise digital marketing platforms

However, these businesses, like Google X, will benefit from the tighter focus on their respective areas of interest by being separated from the search and YouTube businesses, he states.

He says another benefit is that less successful products will not necessarily tarnish the main brand.

Examples include the Google+ social network, which was recently decoupled from YouTube and other Google products, and Google Glass, which has been placed under the responsibility of Tony Fadell at Nest.

“Unsuccessful ventures won’t be associated with the Google name, while successful ones will be more easily tied into the overall brand once they’re established.”

Read more: Datacom sees jump in revenue across ANZ

Send news tips and comments to divina_paredes@idg.co.nz

Follow Divina Paredes on Twitter: @divinap

Follow CIO New Zealand on Twitter:@cio_nz

Sign up for CIO newsletters for regular updates on CIO news, views and events.

Join us on Facebook.

Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the CIO New Zealand newsletter!

Error: Please check your email address.

Tags GoogleovumCloudInternet of ThingsAndroidMoonshotGoogle GlassthreatNest

More about FacebookGoogleMountain ViewNestOvumTwitter

Show Comments