Steve Ballmer announced One Microsoft strategy on Thursday. The restructuring is aimed at making an organization like Apple — offering devices and services.
It is not known whether Nokia will be acquired by Microsoft during this strategic transition. Nokia wants a suitor to build confidence to its shareholders.
It has powered devices through Windows PCs and Xbox. The tech giant delivered high-value experiences through Office and other apps. It enabled enterprise value through products like Windows Server and Exchange.
The form of delivery shifts to a broader set of devices and services versus packaged software. Hence, there’s a need for restructuring, said Steve Ballmer.
Recent strategies of Microsoft
Opening the devices and services chapter, last year Microsoft focused on Windows 8 and Surface, better user interface to PCs, tablets, phones and Xbox.
Its future strategy will focus on creating a family of devices and services for individuals and businesses. This means that Microsoft will not give up any of its important businesses, but add focus on devices.
The Microsoft CEO is reshuffling the technology behemoth after 5 years. Microsoft’s last significant reorganization came in July 2008, when Ballmer split the ‘Platforms & Services Division’ into three separate units – Windows, Online Services and Server and Tools.
One Strategy, One Microsoft
All parts of Microsoft 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 servers.
Microsoft’s new departments will be based on function:
- Engineering (including supply chain and datacenters)
- Business Development and Evangelism
- Advanced Strategy and Research
- Finance, HR, Legal,
- COO (including field, support, commercial operations and IT).
The focus will be on four engineering areas: OS, Apps, Cloud, and Devices.
Who will lead the new team?
Operating Systems Engineering Group – Terry Myerson
It will cover all its OS work for console, to mobile device, to PC, to back-end systems. The core cloud services for the operating system will be in this group.
Devices and Studios Engineering Group – Julie Larson-Green
It will have hardware development and supply chain. Responsible for studios experiences including all games, music, video and other entertainment.
Applications and Services Engineering Group – Qi Lu
It will focus on applications and services core technologies in productivity, communication, search and other information categories.
Cloud and Enterprise Engineering Group – Satya Nadella
It will be responsible for developing back-end technologies like datacenter, database and specific technologies for enterprise IT and development tools.
Dynamics — Kirill Tatarinov
Advanced Strategy and Research Group – Eric Rudder
It will focus on the intersection of technology and policy, and will drive cross-company looks at key new technology trends.
Marketing — Tami Reller
Mark Penn will be responsible for marketing strategy and will lead with Tami the newly centralized advertising and media functions.
COO — Kevin Turner
COO will continue to lead worldwide sales, field marketing, services, support, and stores as well as IT, licensing and commercial operations.
Key partnerships — Tony Bates
This group will focus on key partnerships especially our innovation partners (OEMs, silicon vendors, key developers, Yahoo, Nokia, etc.) and broad work on evangelism and developer outreach.
Who is leaving Microsoft
Kurt DelBene will be retiring from Microsoft.
Beginning in 2014, Craig Mundie will continue as a consultant.
Rick Rashid will step away from running Microsoft Research and move into a new role driving core OS innovation in operating systems group.