Live Search looks even more like Yahoo with Goldberg's exit

The Online Services division of Microsoft may look, work, and behave very differently come next quarter, as the marketing managers who had responsibility for it this year are making room for what could be a very new breed of executive.

Ending a string of appointments to general management and oversight positions in search of the one that would be just right, Microsoft announced yesterday the departure of Brad Goldberg, the one-time general manager of its most troubled Online Services division. The move could be indicative of a shift of mindset in the Live Search division from marketing to research, after the appointment of Dr. Lu to a president's post in charge of Online Services, effectively overseeing the post vacated by Kevin Johnson, that in turn oversees Goldberg's former post.

Two weeks ago, Microsoft made the news official that it was acquiring the services of Dr. Lu, the mastermind behind Yahoo's most prized audience-targeting technology. Although it was unsuccessful in acquiring Yahoo outright, Microsoft's tactics have effectively succeeded in diminishing Yahoo's position in the market and weakening its competitive ability, even if Microsoft didn't absorb market share in the process.

For the last few years, exactly what it meant to be the leader of Online Services -- or even who was the one serving that function -- wasn't entirely clear. When Ray Ozzie was first brought on board, bringing with him his Groove services vision that he had formerly shared with IBM, it appeared that Microsoft's online strategy would be linked to him, even though he was being called "CTO" at the time.

Then in April 2006, Steve Berkowitz was appointed SVP of Online Services, a position which was described at the time as being head of the group. Berkowitz had been the CEO of search engine firm Ask.com. But Berkowitz was aligned to report to Kevin Johnson, Microsoft's president of Platforms and Services, not to Ozzie. Though Johnson appeared to be the man responsible for setting strategy for Windows Live, at a time when some were still calling it MSN, Ozzie publicly took the stage at conferences such as MIX to outline the vision that he had for the division.

Meanwhile, Goldberg, who had been general manager for the Windows Client Management Group, had been brought in to become GM for Live Search, easily the most visible of Microsoft's Windows Live services. To whom did he report? Despite the confusion in the press, it was most likely to Berkowitz.

In February 2008, another big shift took place. Berkowitz was out, and Bill Veghte was brought in as SVP of Online Services. Veghte would be paired with Brian McAndrews, who had been acquired along with Microsoft's massive takeover of Australian search technology firm aQuantive. To whom did Goldberg report now? At the time, it looked like Veghte.

But when Kevin Johnson left the company last June to become CEO of Juniper Networks, McAndrews was said to be in charge of Online Services completely, with Veghte heading up marketing for Windows platforms as well as, somehow, Windows Live.

When Dr. Lu was appointed, Microsoft said that he replaced McAndrews, who is transitioning out of the company through a similar route taken by Johnson. Now, to whom does Goldberg report? To no one, apparently, and it's unclear whether the general manager's post will necessarily be replaced as the division reforms itself.

With the question of true leadership and strategy hanging over Microsoft Online Services...the division does indeed look more like Yahoo than ever before.