Google took us by surprise, despite all their problems with Europe and Privacy concerns, Larry Page and Sergey Brin were working on another plan. Google is now part of Alphabet,  if you are trying to find reasons why Google is now inside Alphabet and why Goodscout is talking about it: the main one is that Google places itself to grow into healthcare, which might be quite healthy (;-) )  for its long term fortune. Basically as the G will be used for Google, we believe that the H will belong to Healthcare…

Google's health care aspirations are no secret. In the last year the firm debuted a strategy to map all of the biomarkers in the body has teased a pill that will find cancer, and reminded the media of a half dozen other crazy innovations which could alter health care eternally.

Only one little challenge: Not one of these innovations are ready for prime time. They are likely not even prepared for naptime, if Google executives are not being dishonest.

But switching to Alphabet from Google could catalyze a new wave of product development. Why, it is important to first understand how a holding company like Alphabet functions and to comprehend. Google dividing into multiple businesses, and is renaming itself Alphabet.

How a Holding Company Like Alphabet Will Work

The target of a holding company would be to empower the individual business units and optimize their functionality. A holding company model is particularly useful when the first organization grows so hugoogle-alphabet-healthcarege and complicated — like Google — that its distinct components might not be aligned.

(The holding company model is really in vogue in healthcare right now, as executives try to grapple with their ever-expanding health systems; Ascension Health, the state's largest not-for-profit hospital chain, embraced a holding company version in the year 2012.)

And by splitting up the varied portfolio of Google, the leaders of Alphabet are incenting its half dozen or so spinoff businesses to pay more attention to their bottom lines.

While Google's billions will still fund the brand new batch of standalone businesses to begin, the Alphabet businesses will not have the protection of being in house start ups anymore. Their individual fiscal performance might not be public, but it's going to not become considerably more difficult for speculators to get a sense for how they are doing.

And by needing “We will rigorously manage capital allocation and work to ensure each company is performing well,” writes Google CEO-turned-Alphabet CEO Larry Page — it'll get more pressure on the Alphabet companies to make, or possibly become acquisition targets.

To Begin, Alphabet Includes Many of Google's Health Care Ventures

Alphabet is going to have heath care as a solid focus. For evidence, look no further than Page's statement memo, where he touts…

Calico: This biotech company, headed by the prior CEO of Genentech, has invested hundreds of millions of dollars to a fresh research facility and is studying the biology of aging.

Life Sciences: This wing of Google is working with Novartis to come up with contact lenses that are smart to track bodily functions, including blood glucose levels, via detectors that are miniscule.

Google Ventures: While Google's hedge fund invested just 9% of its funds in healthcare businesses in 2012 and 2013, about 36% of its dollars went toward health care in 2014. As the Matthew Herper of FORBES reported on Monday, the fund only invested in the new CRISPR gene-editing platform, which is meant to empower scientists to easily cut and paste DNA.

Google X: Most of the Google X enterprises are particularly challenging, like its self-driving cars or balloons made to deliver Internet all over the world. However, the company is grounded enough to get top-grade gift: Google X simply poached a well-seen cardiologist from Harvard to head up its Baseline Study into the body.

Because you may have seen from that list, Google's already been going for “moonshots” –transformative products which are the business equivalent of landing a spaceship on the moon.

And while many of its own jobs that are moonshots have neglected up to now, business journalist Felix Salmon fishes out a link between this new, daring strategy for the whole firm and Google's most ambitious team.

“In many ways Google X is the tail wagging the Google dog,” Salmon writes at Fusion. The unbelievable aspirations of Google X “more or less epitomizes the thinking behind the whole Alphabet job.”

You can even see that long term believing evident as Google ramps up its investments in healthcare.

Google_health-care-alphabet“Google is striving to buy into technology that is shifting old businesses and suits its big data expertise,” Flatiron CEO Nat Turner told the Wall Street Journal this past year. (Google Ventures invested more than $100 million in Flatiron, a startup that examines cancer data.) “Health care is among the sole sectors that have not been disturbed a lot by technology yet.”

Obviously, Google has been a dominant firm for a long time. It is among the greatest organizations on the planet. FORBES rated them #39 on its latest listing of the Global 2000.

But Google faces possible dislocations — for instance, Google's earnings are tremendously determined by its relationship with Apple — and there are questions over just what the Search business model will look like as cellular devices evolve.
Meanwhile, health care is a multi-trillion-dollar business. Health care will stay a multi-trillion-dollar business for years to come.

Can Google win a share of the industry? It’s too soon to say, but the dramatic move to remake its business model has certainly strengthened its hand. And based on the Alphabet companies’ ambitions, it might spell big things for patients, too.

What do you think about Alphabet and the Google placement in the Health Care business ?