Microsoft announces major restructuring

MicrosoftThe rumours were true and Microsoft today announced a “far-reaching realignment of the company.” In a memo published today on its website, Microsoft CEO Steve Ballmer outlines how the company will become “One Microsoft” with an organization centered around devices and services. He explains the changes this way: “One Strategy, One Microsoft.”

Going forward, our strategy will focus on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.

We will do this by leveraging our strengths. We have powered devices for many years through Windows PCs and Xbox. We have delivered high-value experiences through Office and other apps. And, we have enabled enterprise value through products like Windows Server and Exchange. The form of delivery shifts to a broader set of devices and services versus packaged software. The frontier of high-value scenarios we enable will march outward, but we have strengths and proven capabilities on which we will draw.

As expected, Microsoft will move its operating system teams under a single Operating Systems Engineering Group under Terry Myerson. It will cover all  operating systems from console, to mobile device, to PC, to back-end systems. Core cloud services for the operating system will also fall into this group.

Julie Larson-Green will lead the Devices and Studios Engineering Group which will oversee “all hardware development and supply chain from the smallest to the largest devices we build” as well as the company’s studios experiences including all games, music, video and other entertainment.

The new Applications and Services Engineering Group will be headed up by Qi Lu. It will include core app technologies and services including search products.

Other changes include:

  • A new Cloud and Enterprise Engineering Group led by Satya Nadella. Various data center functions will also fall under Nadella.
  • Eric Rudder will lead the Advanced Strategy and Research Group which will focus on “the intersection of technology and policy” and key new technology trends.
  • Tami Reller, former Windows CFO, will head up all marketing with the field relationship as is today.
  • COO Kevin Turner will continue to head up worldwide sales, field marketing, services, support, and stores.
  • Tony Bates will lead business development and the company’s evangelism group.
  • Brad Smith will continue as General Counsel and will lead the Legal and Corporate Affairs Group.
  • Lisa Brummel will continue to head up HR.

A number of departures were also announced. These include Kurt DelBene who worked on the cloud transformation of Office and, Craig Mundie who will work on a special project before leaving at the end of 2014.

With the transformation, Microsoft hopes to be more nimble, communicative and decisive. It should also help ensure that the different groups work more collaboratively rather than competitively than they did in the past.

As Steve Ballmer signed off, “Let’s go.”

Source : Microsoft