Microsoft is about to undergo an organizational restructuring that is designed around what it makes — software and devices — both in the business and consumer sectors, not on the type of business or industry sectors it operates in.
The new emphasis on “functional coherence,” rather than business strategy, has already claimed one casualty. A report by Fast Company claims Microsoft’s reboot prompted then Interactive Entertainment chief Don Mattrick to leave his position to work as CEO of social games giant Zynga.
As has been reported by Bloomberg and AllThingsD, a new cloud computing and business-focused products unit will be headed by current Servers and Tools head Satya Nadella; Online Services leader Qi Lu could add Microsoft Office and other apps to his portfolio that already includes the Bing search service; Julie Larson-Green, who now co-heads Windows efforts, is in line to be in charge of all devices from Surface tablet to Xbox game player, as well as music and TV services; and Windows Phone chief Terry Myerson is expected to take over Windows engineering and platforms.
Meanwhile, Kara Swisher of All Things D prognosticates that Windows CFO and CMO Tami Reller is expected to have a larger marketing job; and current Skype president Tony Bates may get purview over all of business development, corporate strategy and M&A, playing the role of outside guy to Silicon Valley and developers.
It’s not clear where Microsoft Office president Kurt DelBene or Microsoft Business Solutions president Kirill Tatarinov could land in the new set-up, according to Swisher’s org chart, but presumably either out the door or under new units headed by Qi Lu and Satya Nadella, respectively. Rounding out the roster, current CFO Amy Hood — who was just appointed — will also stay in place, as will HR head Lisa Brummel, who has played a key role in this reorg effort. Chief lawyer Brad Smith also seems safely away from the hubbub.
Former Boeing leader and curent FORD CEO Alan Mulally has been cited as key advisor on the Microsoft “reformation.”
The announcement is expected just after Microsoft wraps up its Worldwide Partner Conference now taking place in Houston. It’s keynote speaker? Why, none other than Steve Ballmer. [24×7]
