After Google’s announcement, many in the tech community said that the company’s move might create confusion with regards to properly identifying the difference between Google and Alphabet.

With Alphabet as a holding company, the other businesses within Google will be split out as independent operating entities with their own CEOs, financial structures and independence. That will include divisions like Life Sciences and Calico, which tend to focus on moonshot goals such as developing glucose-sensitive contact lenses or extending the human lifespan.

The birth of Alphabet was announced by Google co-founders Larry Page and Sergey Brin in a blog post yesterday titled “G is for Google”.

Google has appointed Sundar Pichai as its CEO in possibly one of the most surprising company moves to date. Google Inc. shares will automatically convert into the same number of Alphabet Inc. shares and shareholders will have the same rights as before.

Later this year, Google intends to implement a holding company reorganization (the “Alphabet Merger”), which will result in Alphabet owning all of the capital stock of Google.

“Our company is operating well today, but we think we can make it cleaner and more accountable”, Mr. Page wrote.

The company gained $16B profit heading their $66B revenue because of Pichai’s projects, reported The Hindu.

Other research divisions and the smart home business Nest will now run under Alphabet.

At the search unit Google, the CEO will be current vice president Sundar Pichai. That mega-company is called Alphabet, and it’s ready to become one of those shadowy, quiet corporations that appear up at the very top of those brand flowcharts anti-capitalists love passing around.

He also added, “Don’t worry, we’re still getting used to the name too!”

“He has really stepped up since October of a year ago, when he took on product and engineering responsibility for our internet businesses”.

Google co-founder Larry Page has said it will create a simpler structure for what had become a diverse group of businesses. The Alphabet name was chosen “because it means a collection of letters that represent language… the core of how we index with Google search“.

Brin also cited the “amazing progress” being made by new services such as Google Photos and Google Now, which compiles information such as weather and directions tailored to individual consumers’ needs.