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Microsoft announces a major company reorganisation

To innovate faster around OS, Apps, Cloud, and Devices
Thu Jul 11 2013, 16:35
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SOFTWARE HOUSE Microsoft has announced one of the biggest reorganisations in the company's history, in what it says is an attempt to innovate faster and focus on devices and services.

The firm's reshuffling will see existing business units removed and replaced by four engineering areas that include OS, Apps, Cloud, and Devices. The company is being reorganised based on function including engineering, marketing, business development and advanced strategy and research.

The move by the world's largest software maker was unveiled in a letter from Microsoft CEO Steve Ballmer to employees that has been posted on the firm's website.

Ballmer said that the changes "will enable us to execute even better on our strategy to deliver a family of devices and services that best empower people for the activities they value most and the enterprise extensions and services that are most valuable to business".

To do this, Microsoft is aiming to present itself as "one company, not a collection of divisional strategies". This strategy is looking to drive the firm forward with a set of shared goals through which its product lineup will be seen as a whole as opposed to a set of different departments.

Ballmer said, "All parts of the company will share and contribute to the success of core offerings, like Windows, Windows Phone, Xbox, Surface, Office 365 and our EA offer, Bing, Skype, Dynamics, Azure and our servers. All parts of the company will contribute to activating high-value experiences for our customers."

To effect this change, the company is being reordered around functions such as Engineering, Marketing, Business Development and Evangelism, Advanced Strategy and Research, Finance, HR, and Legal.

The Engineering function will be split across four engineering teams targeting OS, Apps, Cloud, and Devices, while Dynamics will be kept separate "as it continues to need special focus and represents significant opportunity," according to Ballmer.

Ballmer also announced that Julia Larson Green will become head of devices, while Terry Myerson will lead Microsoft's operating systems and engineering group.

"This is a big undertaking. It touches nearly every piece of what we do and how we work. It changes our org structure, the way we collaborate, how we allocate resources, how we best empower our engineers and how we market," Ballmer added. µ


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