Microsoft said Friday that it has hired away InterActive Corp search head Steve Berkowitz to lead its Online Business division, which includes MSN and Windows Live. The hiring continues the leadership shuffle at the Redmond company in an effort to make it more competitive against rivals such as Google.

Berkowitz would replace David Cole on May 8, who announced he would be taking a leave of absence in March. In an e-mail to the Microsoft Platforms and Services Division Friday, Berkowitz's new boss Kevin Johnson told employees that he had the right mix of experience and a "deep functional knowledge of the search."

IAC confirmed Berkowitz's departure, saying Jim Lanzone would take over the CEO position. Lanzone was previously the Senior Vice President and General Manager of Ask.com, which recently embarked on a rebranding initiative to further legitimize its search business and attract new users.

"We have a lot of momentum behind Ask.com," said Lanzone. "My goal is to keep pushing us forward down the path we're on. With the team we have in place and the backing of IAC/InterActiveCorp, I believe Ask can take a significant piece of the search pie in the years ahead."

When IAC acquired the then-Ask Jeeves last year for $1.85 billion, Berkowitz joined the team. He is widely credited for the search engine's recent successes in a market increasingly dominated by Mountain View, Calif., based Google.

Before Ask, Berkowitz was the head of IDG Books, and oversaw the expansion of its "For Dummies" line of books, from computer help to topics covering a wide variety of subjects.