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Ballmer unveils broad Microsoft reorganisation

Juan Carlos Perez | July 12, 2013
The Microsoft CEO wants the company to operate in a more efficient, unified manner, pursuing common goals

There have been some big opportunities Microsoft has missed in recent years, in particular the explosion in popularity these past 3 years of smartphones and tablets both as personal and work tools. Windows has a small share of the tablet and smartphone OS market. Microsoft is trying to improve its position there with Windows Phone 8 and Windows 8 but its way behind iOS and Android.

Last summer, Microsoft spent $1.2 billion to buy Yammer and catch up in enterprise social networking, a hot trend these past few years in which its SharePoint collaboration server and other business software like Office, Exchange and Lync hadnt kept up with competition.

Going back a bit further in time, Microsoft left a door open for Google and others to challenge Office and Exchange with less expensive and cloud-only email and productivity suites.

And of course, Microsoft saw the then upstart Google march into the Internet search fray in the early 2000s and walk away with what became the largest, fastest growing and most profitable segment of the online advertising market.

As with any major company reorganization, it remains to be seen if it will yield the expected results once it is fully implemented. Its not unheard of for reorganizations to backfire in a variety of ways. The plan may be inherently flawed. Sometimes the mere fact that a company needs to restructure lowers employee morale and customer confidence.

 

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