In the official response from Google, the company says that this process is done so that Google employees can test new products and technology designed by the company, similar to eating your own dog food (which is why the process is called dogfooding by the firm). The hardware is a mobile lab designed to run innovative software created by Google partners on a Android OS to check the new features and capabilities. This package of the mobile lab hardware loaded with the software being tested was what was handed out to employees, according to the statement. Google says that because dogfooding is a process limited to Google employees, the results will not be made public. Let us ask you this important question. Is there anything in this scenario that prevents the hardware and software from being the Google phone?
source: Phandroid (Employees get gPhone), Phandroid (Google says it's a mobile lab)