The Wall Street Journal is reporting today that Microsoft CEO Steve Ballmer is working on a “significant restructuring” of the company that would formalize its new focus on devices and services. I can confirm this rumor is true.
Not coincidentally, this restructuring plan mirrors a point I made recently in Azure Is the Future of Microsoft.
In that article I wrote, “When I look out over the transformations that are sweeping Microsoft internally right now I see the makings of a change that will eventually reflect in its own corporate makeup. That is, it's only a matter of time before Microsoft realigns its internal businesses around devices and services. And this new Microsoft will not be split evenly between those two businesses. I'm thinking 75 percent of it will be services.”
According to the report, the reorganization could include larger roles for key Microsoft executives including Server and Tools president Satya Nadella, Skype president Tony Bates, and Entertainment president Don Mattrick. The Nadella bit mirrors what I’ve heard for the services part of the business, but I was told that the Windows division’s Julie Larson-Green was being considered for the devices part.
Either way, the new organizational structure will focus on configuring Microsoft around devices and services, dramatically simplifying management of the company and aligning it under common goals. The Wall Street Journal says that where Windows would fit into this structure is still being debated, but I was told that the Windows client would fall under devices, while Server would of course fall under services.
Don’t be surprised if this restructuring is announced by or at Microsoft’s July MGX (Microsoft Global Exchange) conference.