Microsoft CEO Steve Ballmer today announced a reorganisation of the company around four areas: operating systems; devices and studios; applications and services; and cloud and enterprise.
The sweeping changes will be phased in over the rest of 2013, keeping existing teams that are in charge of Windows 8.1, Xbox One, Windows Phone and other top-priority products firing on all cylinders until a smooth transition can be made, he says.
After the reorganisation teams that span groups will be in charge of key technologies and services with each team headed by a champion who reports directly to Ballmer or to someone else who reports directly to Ballmer.
"We will also have outgrowths on those major initiatives that may involve only a single product group," he says. "Certainly, succeeding with mobile devices, Windows, Office 365 and Azure will be foundational. Xbox and Bing will also be key future contributors to financial success."
Here's the full note Ballmer sent to employees to describe the reorganization:
From: Steve Ballmer
To: Microsoft - All Employees
Date: July 11, 2013, 6 a.m.
Subject: One Microsoft
Today, we are announcing a far-reaching realignment of the company that will enable us to innovate with greater speed, efficiency and capability in a fast changing world.
Today's announcement will enable us to execute even better on our strategy to deliver a family of devices and services that best empower people for the activities they value most and the enterprise extensions and services that are most valuable to business.
This company has always had a big vision — to help people realize their full potential. In the earliest days, it was by putting a PC on every desk and in every home. We've come farther than we could have imagined. The
impact we have collectively made on the world is undeniable, and I am inspired when talented new hires say they chose Microsoft because they want to change the world — that's what we do today, and that's what we'll do tomorrow.
Sharpening Our Strategy
About a year ago, we embarked on a new strategy to realize our vision, opening the devices and services chapter for Microsoft. We made important strides — launching Windows 8 and Surface, moving to continuous product cycles, bringing a consistent user interface to PCs, tablets, phones and Xbox — but we have much more to do.
Going forward, our strategy will focus on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.
We will do this by leveraging our strengths. We have powered devices for many years through Windows PCs and Xbox. We have delivered high-value experiences through Office and other apps. And, we have enabled enterprise value through products like Windows Server and Exchange. The form of delivery shifts to a broader set of devices and services versus packaged software. The frontier of high-value scenarios we enable will march outward, but we have strengths and proven capabilities on which we will draw.
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