Microsoft reportedly nearing restructuring


Microsoft may soon see a restructuring effort spearheaded by CEO Steve Ballmer, according to recent reports.

Big changes could be inbound for Microsoft soon, as CEO Steve Ballmer has been reportedly contemplating how he will restructure the company to be leaner and more efficient. According to a new report, the result of that plan will see several Microsoft executives transitioning to larger roles in the company.

According to a report by AllThingsD citing unnamed sources, Ballmer has been working on the plan in relative secrecy for months, only informing a "small group" of executives that report directly to him as well as some Microsoft board members. The entire senior leadership team will likely be informed of the changes by July 1, the outlet reports. The lack of involvement with the entire executive group is said to have worried many top managers who may see their roles diminished or possibly removed entirely.

One source reportedly told AllThingsD that Ballmer is making the moves for his legacy at the helm of the company and that "it's the first time in a long time that it feels like that there will be some major shifts, including some departures."

The report indicates Satya Nadella, president of Microsoft's Servers and Tools division; Tony Bates, president of the Skype division; and Don Mattrick, president of Microsoft's Interactive Entertainment division; could all see expanded roles in the company when the reorganization is complete. 

Reports surfaced earlier this month that Ballmer was considering paring down Microsoft's structure from eight business units to four, with Nadella and Mattrick running two of the units.  According to one report, Bates would have a "significant role" in the restructured company, while an operating systems business unit would be jointly run by Terry Myerson, current head of the Windows Phone division, and Julie Larson-Green, head of the Windows division.

Ballmer has been gearing Microsoft toward becoming a "devices and services" company in recent years, and the launch of the company's Surface line late last year bolstered those ambitions. Microsoft is widely expected to continue expanding the Surface line while also expanding its plethora of services, such as its communications portfolio including Skype and Yammer as well as its Azure cloud computing platform.

Source: AllThingsD | Image via Microsoft

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62 Comments

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Oh Well.. MS should open source Windows OS and close it's shop. Nothing new consumer oriented coming from their side anymore.

Long overdue. The Windows-8 mess, with its blatant pandering to the tablet-centric under 30 set really has to stop. That market represents only a small part of the entire PC universe. To ignore most of one's marketplace is folly at its best.
Remember, revolutions are risky; evolutions are much safer (and much more rewarding).

Microsoft is finally going through its full Intergration phase...
Something they wanted to do for so long...

Now that the MONOPOLY GATE is in the rear view mirror... Let the cleanup begin...

MICROSOFT form DEVASTATOR

I'm glad this is happening! More and more Microsoft products are now working with each other and need to remain in sync. Classic example would be Windows 8, Windows Phone 8 and XBox One.

Microsoft has way too many divisions right now and by having four broad divisions, it should simplify things.

P.s - Ballmer will never get fired or removed till the time Bill Gates is around

Read: Ballmer is feeling threatened by some executives who are candidates to take his job so he needs to get rid of them.

Rob Waldhauser said,
you're looking for class on a forum site?

Not at all. Doesn't mean I can't respond to someone deciding to disregard my opinion without putting forward anything in return.

No, that's my opinion, and something I believe. Take a look at the past executives who were close to his job. All gone.

The Start Screen is here to stay, also Microsoft is already pushing forward with new ideas, so they're on the right track.

Edited by Dot Matrix, Jun 23 2013, 9:24pm :

I wonder if this mean that Microsoft will finally do what they needed to in a _long long_ time, trimming away the bureaucratic fat it gathered from their years of glory. The divisions and teams must become more agile and continue their new trend of faster iterations (such as Windows Blue and VS12 SP's).

All news about this points back to AllThingsD so I'll take it with many grains of salt until there are other sources.

People dog Ballmer... He is a dope sometimes... But this is a very smart man... It's just that he has NO technical skills whatsoever...

But remember, for all this Windows Vista, Red Ring of Deaths, etc...

There's, Xbox360 becoming a market leader (at least in the US).. Windows 7, Server 2008! Office 2010, Office 365 (government contracts)
Microsoft Surface, Windows Phone...Azure, Xbox One (it will be better than what people think)....

Though an idiot sometimes....
I think his goods out weigh his bad...

There are also giant prices for Windows and Office that pushes piracy to new and new levels.

First what MS should do is reduce prices drastically and adjust to incomes pricing policy around the world.

Microsoft have a done a lot of back peddling in recent times. They dont want to be seen as a company that makes too many of them. It does not look good for the company, or the shareholders.

Great! Now if Steve Ballmer can kick his own foot in his a** out the door, the new beginning would immediately start for Microsoft.

JSYOUNG571 said,
Great! Now if Steve Ballmer can kick his own foot in his a** out the door, the new beginning would immediately start for Microsoft.

Actually know anything about the man? Even a cursory read through Wikipedia would show you he's far from a bad CEO.

Trollercoaster said,

Actually know anything about the man? Even a cursory read through Wikipedia would show you he's far from a bad CEO.


Actually the opinions about Ballmer management are very conflicting: some praise him, others portrait him as an incapable CEO.

Fritzly said,

Actually the opinions about Ballmer management are very conflicting: some praise him, others portrait him as an incapable CEO.

For incompetent CEOs look at Enron or such like.

Trollercoaster said,

For incompetent CEOs look at Enron or such like.

The right word in this case is criminal or incompetent.

Trollercoaster said,

Actually know anything about the man? Even a cursory read through Wikipedia would show you he's far from a bad CEO.


I agree. I think it's a poorly timed criticism when it's rumored he's just about to merge the Windows and Windows Phone divisions, finally bringing Windows Phone into their OS division from... Entertainment. What Ballmer is about to do would in that case be what I think should already have been done, but better late than never. I can't blame him for anything like that!

MDboyz said,
.... When you actually do his job better than him. LOL.

Its not hard to find some bloggers on the internet that years ago called things correctly that Ballmer got badly wrong.

... and those smart bloggers can only get the job as bloggers .... umm ....

thealexweb said,

Its not hard to find some bloggers on the internet that years ago called things correctly that Ballmer got badly wrong.

You gotta be kidding me. People white-knighting for Steve Flippin' Ballmer in this message board? Good lord no wonder Linux sysadmins talk such smack at my work about Windows people.

Grunsprek said,
You gotta be kidding me. People white-knighting for Steve Flippin' Ballmer in this message board? Good lord no wonder Linux sysadmins talk such smack at my work about Windows people.

Which highlights the ignorance of the common person. Steve Ballmer has entirely different goals than your oh so wise administrators.
Perhaps during Ballmer's years of running the largest software development company, he may have picked up a thing or two that your admin may not know. Being in the position he is, perhaps he is aware of external factors that your admins are not. He is supposed to set long term directions for the company, and steer the behemoth of an enterprise in that direct, despite resistance. He is supposed to structure the company through job positions and policies that will align with his long term goals.
But hey... what would the CEO know. Let's ask your admins.

You know what? I don't think Steve Ballmer is a brilliant communicator. I think if we look at his record, it is hard to fault him. Microsoft's share price growth is far more sustainable that Apple's.

recursive said,
No need to 'suck it up', Windows isn't the only game in town anymore.

Maybe that's why your friends are systems administrators for cheap Linux companies and Ballmer's CEO of the world's biggest software company?

Major Plonquer said,
Maybe that's why your friends are systems administrators for cheap Linux companies and Ballmer's CEO of the world's biggest software company?

In many cases workers who invent and create actual products contribute more to the greatness than well paid executives. Look at USA. Who do you think makes it greater? Politicians or members of The National Academy of Sciences? Think, how long it will take for the country to recover if all scientists or all politicians leaves it. You can put any CEO, but without good product company is doomed. One creative worker can create a product which could by flying off the shelves like hotcakes and indirectly create jobs for multiple CEOs.

EJocys said,

In many cases workers who invent and create actual products contribute more to the greatness than well paid executives. Look at USA. Who do you think makes it greater? Politicians or members of The National Academy of Sciences? Think, how long it will take for the country to recover if all scientists or all politicians leaves it. You can put any CEO, but without good product company is doomed. One creative worker can create a product which could by flying off the shelves like hotcakes and indirectly create jobs for multiple CEOs.

It's hard to take you seriously when you're comparing sysadmins to scientists, engineers, and inventors.

ModernMech said,
It's hard to take you seriously when you're comparing sysadmins to scientists, engineers, and inventors.

I am not comparing system administrators with scientists, but I understand why it looks like that. Major Plonquer used personal attack based on straw man fallacy and argument from authority. Point of my reply was that reshuffling of the high paid management wont help if product is not what customers want. For me it looks like Microsoft is loosing management with technical background who have real knowledge how PC works, who are able to put complex settings on simple form. I think, this is the reason why placement of various Windows options doesn't make sense and you can access them from multiple locations, which adds to overall complexity.

Edited by EJocys, Jun 24 2013, 2:57pm :

Major Plonquer said,

Maybe that's why your friends are systems administrators for cheap Linux companies and Ballmer's CEO of the world's biggest software company?


What you are saying proves not every company is a money and power hungry corporation like MSFT. Just because they make butloads of $$ doesn't mean they have a good / better product. The mafia were rich too. Doesn't mean they were better than the mom and pop stores they extorted money from.

warwagon said,
Are they going to fire everyone responsible for the start screen? LOL

they have to. The idiot who was the former head of Windows division is gone right?

chrisj1968 said,

they have to. The idiot who was the former head of Windows division is gone right?

Yes, Sinofsky is gone. The person that is responsible for all of the most hated changes in 8 replaced him. Suck it up, the start screen is here to stay.

siah1214 said,
Yes, Sinofsky is gone. The person that is responsible for all of the most hated changes in 8 replaced him. Suck it up, the start screen is here to stay.

Middle boss are more in charge of directive task than business strategy, i.e. the "modern ui" is responsibility of Sinofsky and Ballmer.

warwagon said,
Are they going to fire everyone responsible for the start screen? LOL

Still caught up on that? Why would you fire someone for being innovative?

Dot Matrix said,

Still caught up on that? Why would you fire someone for being innovative?

Windows 8 is not innovative. Different, yes.

Dot Matrix said,

Still caught up on that? Why would you fire someone for being innovative?

For the record you have forever ruined that windows logo for me!

recursive said,
No need to 'suck it up', Windows isn't the only game in town anymore.

Well, err, yes it is. Surely you don't mean the Apple toy or the Linux joke, do you? And they call me a clown.

recursive said,
No need to 'suck it up', Windows isn't the only game in town anymore.

It's funny how people like you praise Linux' 1% market share but laugh at Windows Phone's 10%.

Ha ha funny how you artifically downplay Linux's marketshare and inflate WP's dismal marketshare to try and make a point.

Linux isn't at 1% anymore. In fact, it is a lot closer to catching up with Vista 8, and has seen exponential growth in the last few months thanks to Vista 8.
http://gs.statcounter.com/#os-US-weekly-201323-201326-bar

WP / WinRT, on the other hand haven't fared so well. Market share is either flat or in steady decline:
http://www.digitimes.com/news/a20130619PD222.html
http://gs.statcounter.com/#mobile_os-US-weekly-201323-201326


It is well known that MSFT use bots to hit statcounter websites to artifically inflate Windows numbers. Looks like they will have to get the bots to work a lot harder at keeping the numbers pumped, and you will have to snap out of the MSFT RDF.

recursive said,
Linux isn't at 1% anymore. In fact, it is a lot closer to catching up with Vista 8, and has seen exponential growth in the last few months thanks to Vista 8.

Linux has been hovering at 2-4% for years. If you look at that very same source, it took aprox 5 years to get from 1% to its current 2% or so. There is no "exponential" growth. There's barely any growth at all.

And bots? Seriously?

Whats more important is that in that same period of time, Windows' overall maket share among computing devices fell from > 95% to < 60%, and is on track to hit < 50% before the end of this year. Were this to keep up, and should WP and WinRT fail to gain any serious traction, we will have some very interesting times ahead.

Historically, MSFT have been known to leverage their desktop monopoly to gain a foothold on a new market (think IE, Windows Server, etc), and with Windows 8, they tried the same for Windows Phone / WinRT, and at least so far, have failed miserably.

This is a good thing for the industry, because now MSFT are forced to compete on a level playing field, which means their products will have to be better than the competition, which means better products for everyone.

And MSFT have been known to do their best work when they are in the backseat. So this is good for them as well. But management restructing won't help with that, all that does is change some titles beside a few folks' names, not somehow magically create better products. If Ballmer were serious, he would be looking at hiring / retaining talent at the devs / employee level, where actual innovation occurs and new and better products are made, not reshuffle management / hire more lawers and PR / PM folks.

recursive said,
<BS removed>

It is well known that MSFT use bots to hit statcounter websites to artifically inflate Windows numbers. Looks like they will have to get the bots to work a lot harder at keeping the numbers pumped, and you will have to snap out of the MSFT RDF.

"Well known", yet you provide no valid source to backup your claims... (Because it isn't true).

recursive said,
Whats more important is that in that same period of time, Windows' overall maket share among computing devices fell from > 95% to < 60%, and is on track to hit < 50% before the end of this year.

Ahhhh, no. Windows still has 91% market share. Do a little research next time.
http://marketshare.hitslink.co...spx?qprid=8&qpcustomd=0

Nor is it expected to hit "<50% by the end of this year". More BS.
http://marketshare.hitslink.co...p;qpnp=25&qptimeframe=M

Edited by Dot Matrix, Jun 24 2013, 8:51pm :