In a move aimed at creating “greater agility,” Microsoft has reorganized its
business into three divisions.
Microsoft CEO Steve Ballmer today announced the reorganization, which will split the company into the Microsoft Platform Products & Services
Division, Microsoft Business Division and Microsoft Entertainment and
Devices Division. Ballmer will appoint a president to each division.
Microsoft Platform Products & Services Division includes the Windows
Client, Server and Tools, as well as MSN business units.
“The platform groups have great expertise in creating a software platform
and user experience that touches millions of people,” Ballmer said in a
statement. “By combining these areas of expertise, we will deliver greater
value to our customers.”
“These changes are designed to align our business groups in a way that
will enhance decision-making and speed of execution, as well as help us
continue to deliver the types of products and services our customers want
most,” said Ballmer.
The Platform Products and Services Division will actually have two
presidents initially — Kevin Johnson and Jim Allchin.
Allchin will retire in 2006 after the launch of Windows Vista. Eric Rudder, currently the senior vice president of Server and Tools, will be changing positions after Visual Studio and SQL Server 2005 are launched later this year.
Rudder in his new role will be working directly with Bill Gates on strategy and development efforts.
The Microsoft Business Division is a combination of Microsoft Business
Solutions (MBS) and Information Worker units. It will be lead by Jeff Raikes
who was previously the group vice president of the Information Worker
The Microsoft Entertainment & Devices Division is combination of the
existing Home and Entertainment unit with the Mobile and Embedded Devices
Division. Robbie Bach, formerly the senior vice president for Home and
Entertainment and chief Xbox officer will be the president of the Microsoft
Entertainment & Devices Division.
Ray Ozzie, formerly of Groove Networks and now Microsoft CTO, is expected to
expand his role within the company, “by assuming responsibility for helping
drive its software-based services strategy and execution across all three