Google and Android’s brands have become tainted in recent years, and a diminished brand can be difficult to revive. The technology industry today is littered with dead or dying brands which once flew high and far, but today are worth little to nothing. BlackBerry, Nokia, Motorola, and even Samsung have all seen better days of better brands.
With Google’s brand irreparably tarnished by privacy concerns, an inability to diversify the core revenue stream, and inextricably tied to Android’s ongoing woes, Google could only do what Verizon did years ago. Change the name.
Google is now Alphabet.
Our company is operating well today, but we think we can make it cleaner and more accountable. So we are creating a new company, called Alphabet. I am really excited to be running Alphabet as CEO with help from my capable partner, Sergey, as President.
What is Alphabet? Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. What do we mean by far afield? Good examples are our health efforts: Life Sciences (that works on the glucose-sensing contact lens), and Calico (focused on longevity). Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related.
Alphabet’s domain name is abc.xyz. I like that but what I don’t like is this all too obvious smokescreen to hide Google’s inability to diversify, which also hides the negatives of the tarnished Google brand.
This new structure will allow us to keep tremendous focus on the extraordinary opportunities we have inside of Google… Sergey and I are seriously in the business of starting new things. Alphabet will also include our X lab, which incubates new efforts like Wing, our drone delivery effort. We are also stoked about growing our investment arms, Ventures and Capital, as part of this new structure.
For Sergey and me this is a very exciting new chapter in the life of Google—the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search!
To paraphrase, when your brand turns sour, make sweetened lemonade.