Microsoft announces reorganization – Platforms & Services Devision will be split up

By Gregor | In News | Posted July 24, 2008 4 comments

In an unexpected move Microsoft today announced that the Platforms & Services Devision (PSD) will be split into two groups: Windows/Windows Live and Online Services. While the PSD President Kevin Johnson will work to ensure a smooth transition he will be leaving the company after 16 years.

“Kevin has built a supremely talented organization and laid the foundation for the future success of Windows and our Online Services Business. This new structure will give us more agility and focus in two very competitive arenas,” Ballmer said. “It has been a pleasure to work with Kevin, and we wish him well in the future.”

“Microsoft is a special place and presents opportunity to so many,” Johnson said. “I have been so fortunate to have experienced 16 amazing years of building Microsoft’s business, learning from great leaders in the company and working with phenomenally talented people.”

In the new structure senior vice presidents Steven Sinofsky, Jon DeVaan and Bill Veghte will report directly to Ballmer to lead Windows/Windows Live. They are responsible for Microsoft’s end user software releases with new versions of Windows Internet Explorer, Windows and the Windows Live product suite in the pipeline.

For the Online Services Business group Microsoft is looking at internal and external candidates for a newly created senior lead position.

In the meantime, Senior Vice President Satya Nadella will continue to lead Microsoft’s search, MSN and ad platform engineering efforts. Microsoft recently announced a strategy to redefine search through innovations in the user experience and business models. As an example, the company’s cashback search program, announced in May, is already generating strong momentum among online shoppers and advertisers

Additionally, senior vice president Brian McAndrews will continue to lead the Advertiser & Publisher Solutions Group (APS).

“Our Windows business is firing on all cylinders,” Ballmer said. “We see tremendous opportunity in search and advertising, and we have a clear strategy for investing in success today and growth in the future.”

Posted July 24th, 2008 at 9:35 am
Category: News
Tags: Corporate Strategy
  • Brian in WV

    It’s about time they split up Platforms & Services. The division was a relic from the era when MS thought slapping the Windows brand on every new online product –no matter how actually unrelated to the Windows platform– was a good idea.

  • yertthedestroyer

    I’m slightly worried about this turning out bad as Windows Live is a very nice bit as is, but if they can pull together integration with the split, then it could be potentially very good…

  • Alimaggs

    So what does this actually mean??? Does it mean that Spaces and other products which are not a direct extension of Windows get rebranded something other than Windows Live? Or does this mean more competing projects over different teams?

  • Chris

    Alimaggs: It means they are separating out the MSN part from the Windows Live part. They already have the Advertising and Search parts split out and running under Satya Nadella.