Per BI, Google’s big reorganization, which made Google and its different brands separate subsidiary companies under a wider holding company called Alphabet, could mean fast growth for some of its IoT initiatives. Google has rapidly grown beyond its traditional web and search businesses in recent years, and under the umbrella of Alphabet those projects will have more flexibility as independent companies to innovate faster, according to an article in PC Magazine.
The article explains that as Google reaches into more experimental areas like self-driving cars and healthcare, its investments in these areas have grown harder to justify to shareholders, who would likely prefer the company and its executives keep their focus on core businesses like search, Gmail, and Android.
Under the new arrangement though, Google itself will be exposed to less risk should one of these side projects fail spectacularly: Google will be its own independent company that could be spun off to protect its share price should such a failure happen. That will both make shareholders happy because their shares’ value will be safe, and it will allow these side projects to be more aggressive in experimenting with nascent technologies, since they won’t be handcuffed by the risk that they could crater Google’s share price.
The reorganization will also allow Google’s founders Larry Page and Sergey Brin to focus more on these non-core businesses, as they will become co-CEOs of Alphabet and hand off the CEO role at Google to Sundar Pichai. The most important new companies under the Alphabet umbrella in regards to IoT development will be: