Microsoft Announces Massive Reorg

By Nate Mook | Published September 20, 2005, 3:08 PM

Microsoft on Tuesday announced a broad reorganization of the company into three new divisions each headed by its own president. Current group vice president of platforms at Microsoft, Jim Allchin, also announced plans to retire by the end of 2006 - once Windows Vista is out the door.

The Microsoft Platform Products & Services Division will be comprised of the Windows Client, Server and Tools, and MSN product groups. Allchin will serve as co-president with Kevin Johnson until his retirement, when Johnson will take over.

"I speak for the entire Microsoft family when I say how proud and appreciative we are of Jim's immeasurable impact on our success as a company and on the millions of customers who are able to reach their potential everywhere using our software," said Microsoft CEO Steve Ballmer in a statement.

"Jim is a key visionary and design architect who will help continue to lead us in the coming year."

Eric Rudder, current senior vice president of Server and Tools, will move out of the group and take a new position under Microsoft chairman and chief software architect Bill Gates following the launch of Visual Studio 2005 and SQL Server 2005 in November.

Jeff Raikes will become president of the Microsoft Business Division, which will combine the company's Information Worker business and Microsoft Business Solutions (MBS) - recently branded "Dynamics."

The new Entertainment and Devices Division merges Microsoft's current Home and Entertainment Group, which includes the Xbox, and the Mobile and Embedded Devices Division. Robbie Bach will serve as president of the new division, with current Mobile & Embedded senior vice president Pieter Knook reporting to Bach.

Microsoft CTO Ray Ozzie, meanwhile, will expand his role to drive the company's software-based services strategy across all three divisions, the company said.

In a statement, Allchin said he is still fully devoted to Microsoft, despite plans to retire. "My passion for Microsoft is as strong as ever. While I will call it a day at the end of next year after Windows Vista ships, I'm confident the world-class team of people I've been fortunate to work with will ensure we execute on our long-term mission," said Allchin.

"As we head into the next 18 months of amazing releases driven by innovation in each of these three core areas, we are more excited than ever about our ability to help individuals and organizations large and small reach their full potential," Ballmer added.

But Jupiter Research senior analyst and Microsoft Monitor author Joe Wilcox was skeptical of the change. "Microsoft's position is that the three groups will create more synergy among like divisions. It's unclear to me why another layer of bureaucracy is necessary to foster collaboration," Wilcox said.

"If Microsoft's premise is right, the new structure would better facilitate cross-product integration and improve product development. If Microsoft is wrong, the reorganization could slow down work in progress," Wilcox added. "My concern: That MSN will actually slow down its rapid-fire development, which in the past put it ahead of Windows with technologies like desktop search. I would caution Jim Allchin and Kevin Johnson about absorbing MSN into Windows development and thus killing off the innovation."

Comments

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D.B.D.D.H.K.P.U.K.S.P.

I am a little King, for money I will sing. Don’t make me wait too long I have to move along!

LMAO - KMA

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who cares.............

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"As we head into the next 18 months of amazing releases driven by innovation in each of these three core areas, we are more excited than ever about our ability to help individuals and organizations large and small reach their full potential," Ballmer added.

I'm sorry.

But humans don't talk like this.

take a step back, and examine what you just said. It's an operating system. software. You added some see through windows and features that have been available for at least 4 years now in other add-ons and plug ins and other OS's. It's really not all that innovative, or exciting.

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WinFS is.

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The idea behind WinFS is great, but Microsoft's implementation of it will be-- how shall we say fscked.

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You don't know that.

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Did they ever mention something like "... an we will work on low price invitations for customers to purchase more of our products"?

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Be sure to sell your stock before the end of year 2006.

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Yeah, just remember to buy a lot over the next year... it's a good time to buy... to applaud the company for making a smart business move and increase company value... then sell off after before Vista and make a fortune!

NOTE: If you listen to the advice of a random tech site message board poster for stock tips, you need help... SERIOUS help.

WARNING: Side effects of listening to my stock tips may include itchy rash, red-eye, insanity, vertigo, and self-implosion.

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Wha.. wha w w what's HAPPENING TO ME!?!?

I'm IMMMMPLLOOOODIIIIIIIINNNG!!!!

*dies*

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Do you really thing that anyone would be stupid enough to sell their stocks when the shares will peak with the new coming in and with Vista? Maybe three months later. I was joking about selling the stock. I figured that was implied, but I should have said it.

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Developers, developers, developers, developers, developers, developers, developers, developers, developers, developers, developers, developers (gasp) developers, developers, developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, (stomp around some) Developers, Developers, Developers, Developers, Developers, (sweat and enrage) DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS!

Yah!

Check out the video at http://cityofrain.com

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oh gosh no.... I had that stupid song stuck in my head for weeks.

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Glad I could help. =)

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lol

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In other more valuable news (joke)

Quantum Link is set to make a come back, and take over the world.

http://www.quantum-link.org/

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LMAO

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Now I'm gonna have to refresh the BBS code I wrote a few years back and get'er going again.

QLink is gonna need some competition!

heh

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Mmm...BBS. Can't remember the name of the software I used back then...

I'd love to see some of those old BBS games again though. good times....good times.

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LORD was the best. Oh wait remember SysOP?

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Tradewars
LORD
Usurper
BRE

Lots of old faves, being a sysop was a blast too especially once I went telnet based and wrote my own bbs software.

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Heh...never wrote my own..but definately loved being the SysOp. We had a tight-knit group...both of SysOps and users in our area...about 4 really strong BBSes.

LORD... wow. That takes me back. and BRE. Anyone knwo where those might be had nowadays? I'd love to take a trip down that memory lane..

Maybe even download an ancient version of Citadel BBS. (Used Synchronet briefly..and ViSiOnX...but Citadel was by far the choice BBS software in our area.)

*sigh*

LORD ruled. Tradewars was the best. BRE...a better waste of time has yet to be developed.

fewt: email me. ThePC.Tool on gmail.

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I have LORD and BRE. ;-) They are in my BBS backup circa 2001 when I finally shut her down (was internet based at that point and there were no file / message forums just games)

I ran Wildcat as a co-sysop then moved on to vbbs then sync then renegade. I didn't like any of them so I wrote Fusion and then Photon (unreleased) for Linux. I frequented mostly MBBS boards, though you'd find me all over really if you knew who to look for heh.

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They need to fire Balmer.

That's the re-org I'm waiting for.

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Somebody throw a chair at him...preferrably with sharp, pointy edges.

Make sure they're made of metal...for that extra irony.

Get it? Metal - iro...

...Oh forget it.

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lol

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What a negative for that?

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We don't have any news, so we might as well report something that no one cares about because then they'll have something to read and talk about Microsoft for 30 seconds. MICROSOFT! MICROSOFT! MICROSOFT! LKJ!LK!JLK!JLK!J

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Whoopie doo Microsoft.

This means nothing to normal users.

More spew exactly.

Get rid of Ballmer first.

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Yeah, but then you gotta deal with flying chairs and such...this is much safer.

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While I'm not going to say I think this will be a great change, no one can say for certain what this will yeild.

Only haters and trolls have such un-founded confidence.

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Did you just call him a troll?

Or a hater?

I confused am.

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"troll" is a gay word..wincemeat is obviously a f**

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Could you imagine?

Balmer: Where's the chairs?
Board: We removed them for today's meeting.
Balmer: Why?
Board: We are letting you go.

etc etc

Well, I thought it was funny.

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LOL

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lmao...

Nice.

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Wow...you're dead-on in your trolling examples today, sir.

Now try for an amusing troll. Those are always nice, seeing as how the immature ones tend to get old so quickly.

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Picture him doing the monkey dance on his way out that day chanting

"BUT I LOVED THIS COMPANY"

heh

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That's like the 3rd time you've misspelled my username.

...or is there some other user that you're referring to?

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I didn't call him either. I'm just saying that no one can say something like that for absolutely certain and believe it themselves, unless they're a hater or troll.

My guess is it was probably just a joke more than a realistic evaluation, which I have no problem with. I was just adding my 2 cents.

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lol

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LOL.

I get enjoyment out of your being annoyed.

Sucker.

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lol. I wasn't annoyed. I even said so in the comment you replied to. No offense taken or meant. It's all good.

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Didn't they do something like this before?

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yeah, in 2002 they separated MS into 7 different divisions.

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They're actually reconsolidating from the 7-business split they have now... they really shouldn't have split in the first place, but whatever, the Justice Department and business environment dictated the need at the time.

I'm not sure I agree with Wilcox's statement about absorbing MSN... I'm sure that bringing them into the Windows picture will fortify their position in Desktop Search.

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I believe it would have done a lot of good to have forced the split back then.

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But they did... just not by force... they voluntarily split into 7, and the Government only wanted a 3-way split.

And actually... The government wanted to do more of a Ma Bell approach and split them into 3 completely separate companies rather than just sections.

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That 3 way split could very well have forced them to release their products for more than just Windows and Mac though. ;-)

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Microsoft's constant reorg's are due to upper management's refusal to see the internal issues of the organization overall. Their lack of cultural diversity, relegating people from India to the status of "perma-temp", and relegating blacks to the lower levels of the organization, while at the same time classifying white women as minorities, and elevating them to senior management positions (in many cases instead of more qualified black or even white males), has caused a major departure of very difficult to re-hire talent.

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more spew

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