Microsoft Announces Massive Reorganization!

As predicted previously in WinInfo, Microsoft Corporation has announced a stunning corporate reorganization that divides the company into five new divisions.

Paul Thurrott

March 29, 1999

2 Min Read
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As predicted previously in WinInfo, Microsoft Corporation has announced astunning corporate reorganization that divides the company into five newdivisions. Four of these divisions were widely known previously, but thefifth, a Consumer Windows division, came as a surprise. This joins BusinessProductivity, Business and Enterprise, Developer, and Consumer and Commerce.Jim Allchin will head the Business and Enterprise group, Bob Muglia willhead the Business Productivity group, Paul Maritz will lead the Developergroup, and Brad Chase and Jon DeVaan will co-head the Consumer and Commercegroup. Robbie Bach will head the Windows Consumer division.

Microsoft president Steve Ballmer, who announced the reorganization in apress conference call at 11:00 a.m. Pacific Time, said that the changesshould not be construed to suggest any impending break-up of the company.

"There is no break-up of the company into smaller companies that I wouldfind acceptable, and we're certainly not thinking of that as a possibility,"Ballmer said.

Microsoft CEO Bill Gates agrees.

"The kind of alignments we do relate to competition but [the reorg] hasnothing to do with any lawsuit," Gates said. "Looking to the future, ourvision is much more expansive. We see a world where people can use anycomputing device to do whatever they want to do anytime, anywhere. The PCwill continue to have a central role in this future, but it will be joinedby an incredibly rich variety of digital devices accessing the power of theInternet."

Related:Exploring eBPF for Windows: Opportunities and Limitations

The company says that the new reorganization is designed to segregateMicrosoft's business activities into customer-centered groups:

  • Business and Enterprise Division: Focuses on the information technology needs of large organizations.

  • Consumer Windows Division: Focuses on improving Windows for the end user. It will also focus on consumer-targeted products such as games, input devices and Microsoft's reference products.

  • Business Productivity Group: Focuses on the needs of the so-called "knowledge worker," who is on the road and always in need of their data.

  • Developer Group: Focuses on helping developers who write software for all Microsoft platforms.

  • Consumer and Commerce Group: Works to make it easier for customers and businesses to get together online.

Microsoft also spelled out its key priorities for the coming months. Firston the list is making Windows 2000 more scalable, reliable, and available,while simplifying the product and lowering its Total Cost of Ownership(TCO), major concern for the corporate set to which this operating system isaimed. Pervasive information availability, specifically for travelingknowledge workers, is also high on the list. Microsoft is also looking tothe future, where a new generation of PCs and non-PC devices will offerInternet access and other services with a much friendlier interface.Microsoft sees the Internet as the "ultimate marketplace" for all users,regardless of the types of devices they choose to use.

Related:Microsoft Is Struggling to Retain Women, Minority Employees

"This new structure is part of the reinvention of Microsoft," said Ballmer."

"We want to give people the power, connectivity and the ability to choosehow they want to use computing in their lives," Gates said

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About the Author

Paul Thurrott

Paul Thurrott is senior technical analyst for Windows IT Pro. He writes the SuperSite for Windows, a weekly editorial for Windows IT Pro UPDATE, and a daily Windows news and information newsletter called WinInfo Daily UPDATE.

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