Deep Green Crystals

Tuesday, September 20, 2005 In the name of agility and services, Microsoft has reorganized into three core divisions, each with its own president: a Platform Products & Services Division under Kevin Johnson and Jim Allchin until Allchin retires at the end of next year when his baby, Vista, materializes; a Business Division under Jeff Railes and an Entertainment & Devices Division under Robbie Bach.

Needless to say Microsoft has never done such a thing before, the world being convinced its masters are greedy of their power. It is assumed Microsoft is girding its loins for mortal combat with Google, Yahoo, Linux and folks like salesforce.com.

Microsoft also said that Ray Ozzie, the Lotus Notes wonder whose Groove Networks start-up Microsoft bought in March, will expand his role as one of Microsofts three CTOs and drive the company software-based services strategy and execution across all three divisions.

In a canned statement, CEO Steve Ballmer said, These charges are designed to align out business groups in a way that will enhance decision-making and speed of execution... Microsoft is currently the subject of a BusinessWeek cover story basically saying its lumbering bureaucracy is driving off its best people.

Ballmer also said, We see a new era of opportunity to provide greater value to our customers by weaving both software and services into forms that suit their needs. By bringing together the software experience and the service experience, we will better address the changing needs of our customers
digital lifestyles and the new world of work.

The new Platform unit, which will fall solely to Johnson when Allchin leaves, includes the Microsoft client, servers, tools and MSN, which is cast as delivering software-based services at scale.

David Cole will continue to run MSN. Eric Rudder, whos been running servers and tools, will go off and work directly for Bill Gates on some unidentified advanced development projects and overall technical strategy when Visual Studio and SQL Server 2005 later this year.

The new Business unit, which will compete with Oracle and SAP, combines the old Information Worker, a k a Office, and Microsoft Business Solutions.

The new Entertainment & Devices unit, which gets the Xbox and phones, combines the current Home and Entertainment Division and the Mobile and Embedded Devices Division and is supposed to bring more focus to Microsofts sometimes floundering efforts in the segments. The head of Mobile and Embedded Devices Division Pieter Knook will report to Bach.