Google: Just an Index Entry
August 11, 2015
The world is spinning. Google is Alphabet. The pundits are out in force. To get the scoop straight from the leaders of the math club, navigate to “Google Announces Plans for New Operating Structure.” My view is easy to articulate.
First, Google, the search company, is a one trick revenue pony. The math club has not been able to generate significant, organic revenue from bake sales, Loon balloons, and head mounted computers. These activities generate questions about focus, cost control, and management capabilities. The new CFO is curious. Stakeholders are curious. Those seeking relevant search results are curious. The fix is to legitimize doing many things is to create a holding company and converting Google into one index entry.,
Second, the new name Alphabet allows the president of the math club to do anything from A to Z. Clever right? The shift will not increase the organic revenue from home grown products. After 15 years, the GOOG continues to ride the whale that GoTo, Overture, and Yahoo beached long, long ago. Who remembers? Not many, judging from the commentaries I have scanned. An A to Z company has to fill out those index entries.
Third, the stock tweaks will be good news for some stakeholders. But, like the splitting of Hewlett Packard into two companies, MBA plays cannot change the fact that the bulk of Google’s revenue comes from online advertising.
In short, I can stop harping about relevance, precision, and recall when I mention search. Google as an objective search system is paying the bills.
The thrill of the world’s information and all that jazz is gone. Will Alphabet come up with significant new revenue streams? I will wait and see. I might even search Watson for an answer if that technology moves beyond PR and marketing fireworks.
I won’t pose the query to Google. Time to dust off the links to Mojeek.com and Gibiru.com.
Stephen E Arnold, August 11, 2015
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