Microsoft Reorganizes Its Online Services

July 24th, 2008 at 12:00 am

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Microsoft has announced today a major reorganization in their company.  The reorganization follows after the departure of Kevin Johnson, President of the Platforms and Services Division (PSD) from Microsoft.   The PSD will be split into two new divisions, Windows/Windows Live and Online Services.  Both groups will report directly to Microsoft CEO, Steve Ballmer.

“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.”

Vice Presidents Steven Sinofsky, Jon DeVaan and Bill Veghte, will be heading up the new Windows/Windows Live division.  This division will primarily be  in charge of the Windows OS (platform) and its Windows or Windows Live branded products including, Windows Live suite and Windows Intrernet Explorer among others.

The second division aptly called Online Services will be incharge of Microsoft’s web startups, Microsoft’s search, MSN and ad platform engineering efforts.  Moreover, the Online Services will now be acting like a Web 2.0 company instead of part of the software giant.  This will allow Microsoft to dive deeper into the web industry.  As of now, there is still no one to lead the division.  A new senior lead position will still have to be created.

“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.”

Kevin Johnson, President of the PSD will be leaving his job at Microsoft and will be taking up a CEO post at Juniper Networks. “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.”