Microsoft Reorganisation Creates "One Microsoft"

In a recent announcement, the CEO of Microsoft, Steve Ballmer announced to the tech world that Microsoft will no longer be operating under eight product divisions. Instead, the multifaceted technology company will be consolidating their operations into four broader themed divisions, in order to encourage collaboration within the company. As well, almost everyone in the company with a V.P. or executive title next to their name will also be met with shifting responsibilities across the spectrum. What this will mean for current and future Microsoft offerings cannot accurately be determined at this point.

The Microsoft product offering in recent years has been hit and miss. While the Windows phone is popular (at least with the hipsters) it is still struggling to compete with the iPhone and Android in many markets. Their search engine, Bing, loses billions of dollars a year and can't ever hope to compete with Google. Microsoft was late on the rise in tablet popularity and technology, and while the Surface is a nice piece of hardware, customers were already indebted to the aforementioned brands.

However, over the years many Microsoft business units have created duplicate work flows and internal solutions. The business units basically operated at an autonomous level without much interaction, creating redundancies and wasting money and time. The breakdown of the new divisions is as follows:

• Xbox Hardware, Surface tablets, hardware accessories and games will be under Julie Larson-Green.
• All operating systems for all products will be consolidated under Terry Myerson, who previously only handled Windows Phone engineering.
• Qi Lu will oversee the Office Suite and Skype in a new applications group.
• Windows Azure and the massive network of Microsoft data centers will fall under Satya Nadella.
• A fifth group headed by Tony Bates will handle business development and mergers and acquisitions.

This is all part of changing the corporate culture at Microsoft to essentially, be more like Apple. Instead of a focus on just the software, Microsoft is shifting to finally become a devices and services company. While this evolution is long overdue, it might be too little too late. Apple has solidly dominated the hardware market in phones, tablets and other portable devices. Remember the Zune? Didn't think so.

Ballmer, in an internal memo to all Microsoft employees also stressed the expression of the Microsoft core values, each one a modern business cliche with a Microsoft twist. Regardless, in his memo (which can be read here) Ballmer ended on a positive and hopeful note for the company:

"Lots of change. But in all of this, many key things remains the same. Our incredible people, our spirit, our commitment, our belief in the transformative power of technology — our Microsoft technology — to make the world a better place for billions of people and millions of businesses around the world. It’s why I come to work inspired every day. It’s why we’ve evolved before, and why we’re evolving now. Because we’re not done."