Kara Swisher, putting perspective on why Google (company) is becoming Alphabet, and why Google (product(s)) is staying Google:
It seems to be about accountability and putting everything in its correct place — which has never been a particular talent of Google’s. So much so that recently, when new Google CFO Ruth Porat used terms like “transparency” and talked of cost cutting on its recent earnings call, the stock jumped high.
It’s an effective message to Wall Street to make the company structure more clear, even if it is not really that different from before (all these units once rolled up to Google CEO Larry Page and now will roll up to Alphabet CEO Larry Page).
Thus, the boring and mature stuff that pays for everything else will be watched over by the very stalwart Pichai, while the others get to play more with the business of the future that is much pricier.
In other words, kids will still be kids, but you can now presumably get to see the numbers on just what that costs. (A whole lot!)