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Microsoft this afternoon confirmed the executive departures and changes reported on various sites during the past day.
So what's going on here? Reorganizations are common at Microsoft this time of year, after the company completes its mid-year reviews and starts to look ahead to the next fiscal year, which starts in July. As reorganizations go, this one is relatively widespread, but it's not as significant as, say, the company's decision two years ago to organize around three divisional presidents. In some units, such as the Online Services Business, analysts say the changes appear designed to address problematic areas of the company.
"It's not a big surprise," said Matt Rosoff, analyst at Kirkland-based research firm Directions on Microsoft, of the reorg in the online unit. Rosoff called Microsoft's proposal to spend nearly $45 billion to buy Yahoo "an admission that their current online strategy isn't working." The changes in the Online Service Group include the planned departure from Microsoft of Steve Berkowitz, the former Ask.com CEO. However, Berkowitz will stay with Microsoft through August, the company says.
Read on for a detailed rundown of the rest of the changes ...
The departures are as previously reported: Leaving the company, in addition to Berkowitz, are Windows marketing exec Michael Sievert and Windows Mobile chief Pieter Knook. Andy Lees comes over from the Server and Tools Division to fill Knook's role.
Michael Gartenberg of Jupiter Research observes that the Windows Mobile appointment is a "bit of an odd move since it's not clear to me what mobile expertise Lees has at time when Windows Mobile needs a strong hand at the helm." For the company to tap an executive from Server & Tools could raise eyebrows at a time when Windows Mobile is seeking to make a bigger push into the consumer market.
However, another executive shift relates more directly to the consumer market for mobile devices: Roz Ho, whose past roles included heading the company's Macintosh Business Unit, was promoted to corporate vice president of premium mobile offerings. The company says her duties will include leading the team to be picked up by Microsoft in its planned acquisition of Danger Inc., maker of the T-Mobile Sidekick.
As previously reported, the company is also expanding the roles of Microsoft search and advertising executive Satya Nadella, and Windows Business Group VP Bill Veghte. Nadella will be promoted to senior vice president, and he'll add MSN programming and engineering to his responsibilities. Veghte will also be promoted to SVP, adding online-related responsibilities.
Brad Brooks, previously general manager of Windows product marketing, will become a corporate vice president and fill Sievert's role. Steve Guggenheimer, formerly GM of Application Platform Marketing, will lead Microsoft's OEM division, filling a role previously held by Scott Di Valerio, who left the company for PC maker Lenovo last year.
Beyond that, the company is promoting a number of executives across the company, giving them loftier titles but having them oversee essentially the same areas as before.
Update, 5 p.m.: A Microsoft spokesman says the changes are unrelated to the company's proposed Yahoo acquisition and would have taken place regardless of that plan.
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I think taking a larger share of Facebook would be a good move. Facebook is preparing itself to be the platform of the web and this is exactly what MS needs. Also incorporating facebook services with outlook and hotmail could be extremely useful. Unfortunately, a complete buyout would put MS's name behind the service which could turn users away (as fickle as young people are) so, like the previous 250 million investment, it would need to be quiet."
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Posted by unregistered user at 2/16/08 7:47 p.m.
mabye this combined brain power can convince ballmer to stop the yahoo madness