Year 2015 was quite significant for Google as it launched its risky enterprise of ‘Alphabet’, its new holding company. This sentiment was displayed in the words of current CEO Mr. Larry Page who in August said, You need to be a bit uncomfortable to stay relevant. After this declaration, this $500 billion enterprise was completely upended. Interestingly ‘Alphabet’ will oversee the function of Google and a package of smaller flagship businesses which would be major arms of the mother company in one day. Obviously, we can expect that 2016 will see further innovative things in Alphabet. Let’s enlist them in sync.
The main focus of Alphabet is to groom new enterprises and entrepreneurs within the company itself. Along with this, its eyes are fixed on acquiring promising businesses and those who would make the path of acquisition smoother would ascend the hierarchy ladder. Regarding, this aspect one of the emerging interesting name is that of Twitter.
Twitter has denied every prediction of merger however if it ever joins Google it’ll operate as an independent venture backed by Alphabet’s money to act as a safety net. Even the current Twitter CEO would remain to act in current role but as a subsidiary venture of Alphabet.
According to an expert Google analyst John Blackledge enlists top 5 functions in respect of importance that people use its services and that are ‘Search’, ‘YouTube’, ‘DoubleClick’ which provides ad services, â€œGoogle Play Store’ and ‘Cloud’. Among, all of them the last one has been most significantly developed.
Google Cloud service is holding 3rd position only after Amazon’s Web Services and Microsoft’s Azure. Some recent developments regarding Cloud service are hiring an expert from cloud computing industry, Diane Greene, erstwhile co-founder of VMware. Expected targets are enterprise cloud consumers.
Core sector of Google from where it receives its chunk of revenue is ads from its search service. This trend goes in the similar direction with its mobile industry. In recent years Google has put in good efforts behind its smartphones development (its Nexus brand) and has accordingly customized its ad format so that it rules the search service as it did with desktops. Not far behind is the Google tablets.
In recent quarters Google’s revenue from its clicked ads is on a descending graph as the company is struggling with marketers to pay equal money for placing ads on small screens. However, experts hope that Google will soon overcome this problem and that will be the founding step for making a trillion dollars company.
Term for most ambitious enterprises in Google dictionary is ‘moonshots’. And recently some executives are calling them by a bolder term that is ‘company’.
Recently one such ‘moonshot’ project lab called Google X has been transformed into an independent business. Similar transformations have been undergone by its projects ‘Fiber’ for high-speed broadband service and ‘Calico’ a life-extension research project.
It’s likely that in 2016 another of its moonshot project will be established as an independent industry that of ‘self-driving car’. This will in future roll out autonomous cars and replicate riding experience like Uber.
However, this will be unlikely a smooth ride as can be seen with the State of California making an announcement that this driverless car would mandatorily require you to sit behind your steering wheel still you get down. Ironically the proposed design don’t include a steering wheel.
Wall Street analysts are making painstaking efforts to find out an exact amount of revenues generated from different flagship companies of Alphabet. Like that from its Nest labs, self-driving car project and Fiber. They are eagerly expecting Alphabet’s detailed declaration, however, have no idea when.
Mutual relationship between the two was going through a rocky patch the previous year, however, much has been improved since the hiring of Ms Ruth Porat, the CFO of Google.
We will be keeping a good watch on how things shape up in next year and see what new things will emerge in the worlds of digital marketing, cloud and Internet of Things from Google- Alphabet. Hopefully, 2016 will be an awesome year for the company and its consumers.