Microsoft Streamlines to Compete Better

Microsoft Corp. streamlined its businesses into three divisions on Tuesday to compete more effectively against Google Inc., Oracle Corp. and the Linux operating system. The three divisions are aligned along Microsoft's core Windows product and its MSN Internet arm that is going head-to-head with Web search leader Google, a business division that will focus on Office and other business software products, and a division that will include the company's Xbox, consumer and device businesses. Each is headed by its own president.

The newly formed Platform Products and Services division will be led by co-presidents Jim Allchin and Kevin Johnson, who most recently served as Microsoft's top sales executive. Allchin, a 15-year company veteran, will retire at the end of 2006, Microsoft said. Jeff Raikes, currently in charge of the division that includes Office and other business software products, will become president of the Business Division. Robbie Bach, responsible for launching the Microsoft's Xbox video game business, will become president of the Entertainment and Devices division that will also include the company's cell phone software business.

News source: Reuters

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