You’d expect me to say this but Google’s transformation into Alphabet is a brilliant move that enables Page, Brin, and their company to escape the bonds of their past — They’re just a search company. Why are they working on self-driving cars and magical contact lenses and high-flying balloons? — and go where no one has thought they would go before.
To Wall Street and countless bleating analysts — not to mention its competitors and plenty of government regulators — Google was a search company, though long ago it became so much more. I don’t just mean that it also made a great browser, the best maps, killer email, an open phone operating system and some of the best phones, and a new operating system (and the damned fine computer I’m writing on right now) — and that it acquired the biggest video company and the best traffic data company. I don’t just mean that Google has for a long time really been the powerhouse advertising company.
No, Google long ago became a personal services company, the post-mass-market company that treats every user as a customer it knows individually. That is the heart of Google. When they say they “focus on the user and all else will follow,” they mean it.
But Google was also a technology company, working on projects that didn’t fit with that mission.
So this move lets Page and Brin move up to the strategic stratosphere where they are most comfortable. It lets them recognize the tremendous job Sundar Pichai has been doing running the company that is now “just” Google. It lets them invest in new experiments and new lines of business — cars, medical technology, automated homes, and energy so far, and then WTF they can imagine and whatever problems they yearn to solve. It lets them tell Wall Street not to freak at a blip in the ad market — though, of course, the vast majority of the parent company’s revenue will still come from Google’s advertising business.
A journalist asked me a few minutes ago whether there was any risk to the change. I couldn’t think of any then. I suppose one risk is that this will only freak out especially European media and regulatory technopanickers, who will now go on a rampage warning that — SEE! — Google does want to rule the world. But what the hell. They were going to do that anyway.
A few weeks ago at Google I/O, I had the privilege of meeting Page. To introduce myself, I said that I wrote a book called What Would Google Do?. “Oh, I remember,” he said with impish grin and then he asked: “What would Google do? I want to know.”
See, I don’t think even Larry Page knows what Google — er, Alphabet — will do. He is now setting himself up for discoveries, surprises, exploration, experimentation, and a magnificently uncertain future. Who wants a certain future? That’d be so damned boring. So horribly conventional.
Disclosure: I own Google — er, Alphabet — stock. And I now lust after Alphabet swag.