Yesterday, Google announced Alphabet, which will be a new collection of many different companies including Google itself. Google believes this new structure will allow them to keep sufficient focus on all the disparate opportunities they have inside of the company. On the surface, this move may seem a bit odd, but Larry Page’s blog seems to make sense: they want a way to work on initiatives that are far outside what Google does today, without affecting the core business.
But in regards to their mobile business and Android, I’m curious to see how things unfold. That is, under the new Alphabet re-org, will Google break out Android as a separate "A" business? I could think of many reasons why this would make sense and many reasons why it might not.
Let’s take a look at this hypothetical move...
Why it might makes sense to spin out Android:
- Android needs to have it's own autonomy as a business. It is the only real, widespread operating system that Google has in the market, and deserves its own CEO and org
- It will allow Android to be separate from the ad business. This might not be in the new Google subsidiary’s best interest, but it will improve perception around Android's privacy, and avoid the ad business having a disproportionate influence on the OS
- Android for Work can be given more attention as an important enterprise business unit under the new Android company, and they can spend more time to work with other companies in the enterprise ecosystem
- Android should continue to leverage the same shared talent pool within the Google employee base. Spinning it out as a new company may slow down Android's momentum at a critical stage of its life and when iOS competition is high.
- Services like Google Now, Gmail, and others are so core to Android, that the teams should continue to work closely together. Splitting them apart will create a natural friction that comes from having people in separate org structures.
- Mobile is critical to the next phase of growth at Google. Everything from Adwords to mobile search is core to the success of the Google business, and breaking out Android may have an adverse impact on the future of Google.