Beyond Bach's departure: What else changed today at Microsoft?

By | May 25, 2010, 10:05am PDT

Most Microsoft watchers are focused on the depatures of President Robbie Bach and Chief Experience Officer J Allard that were announced on May 25 by CEO Steve Ballmer as part of a big reorg at Microsoft.

But there were some other moves that were part of today’s announcement that are getting less scrutiny but shouldn’t be ignored. These include:

1. Windows Web Services is born. Antoine Leblond, who has been Senior Vice President of the Office Productivity Applications Group, is moving to a new role: Senior Vice President for the Windows Web Services team. What is Windows Web Services? Good question. CEO Steve Ballmer’s e-mail describes it as “integral Windows services that today deliver updates, solutions, community and depth information for the Windows consumer.” Leblond will be reporting directly to Windows/Windows Live President Steven Sinofsky. However, Windows Web Services has nothing to do with Windows Live, the Softies say.

2. Office gets a new engineering chief. Kurt DelBene, Senior Vice President of the Office Business Productivity Group, is now head of all of the engineering responsibilities for the Office business.

3. Former Live Platform Services head David Treadwell moves out of the Windows division and into the Interactive Entertainment Business (the part of Microsoft that oversees Xbox and video games). So what does this mean for the increasingly invisible Windows Live Platform for developers? A Microsoft spokesperson said the Live Platform is still around and under Corporate Vice President Chris Jones. But it’s been a long, long time since Microsoft has shared any information about what’s going on for developers on the Windows Live front….

4. Ballmer’s decision not to replace Bach has a precedent. Remember when former Windows Platform and Services Kevin Johnson quit in 2008 to join Juniper Networks? Ballmer had Windows and online services report directly to him for a while in order to try to get those houses in order. Seems like he’s doing the same with gaming and mobile with today’s reorg. (At some point I bet he’ll appoint a new Mobile President. We’ll see, though….)

5. The Mac Business Unit (MacBU) is being moved into the Microsoft Business Division as part of today’s moves, a Microsoft spokesperson confirmed. I also asked what’s happening with the Surface team; no word back so far. The spokesperson said that the Specialized Devices and Applications team under Rusty Jeffress — which is where MacBU, Embedded, Auto, Surface and Hardware — will continue to operate under Bach until his transition period ends this fall. Where these other teams will move after that is TBD (to be determined), the spokesperson added.

6. Mindy Mount is now the Corporate Vice President and Chief Financial Officer for Microsoft’s Online Services Division. Until today, she was CVP and CFO of the Entertainment and Devices Division.

Reactions to the news about Bach and Allard leaving are mixed. Some seem to see the move as the beginning of the end for Microsoft in the entertainment/consumer space. Others — including the anonymous Microsoft blogger  Who’da Punk (a k a Mini Microsoft) — see the changes as positive.

I have to say I’m more in the latter camp: I think the Entertainment and Devices division needed a shaking up. I’m just not 100 percent convinced that Ballmer is the right guy to be leading the mobile and gaming charge. What’s your reaction to today’s news?

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Beyond Bach's departure: What else changed today at Microsoft?
tomlin21-24319035676893835085146735905770 11th Oct
Decent things. I will arrive once more once nfl jerseys 2012 more quickly to learn some a lot more.
I think Mary Jo is on crack if she thinks Bach leaving is 'positive'.Ballmer FIRED the guy to keep him from SUCCEEDING him!
Business as usual in Redmond, nothing new there.
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Business as usual from OS Reload
John Zern 25th May 2010
You ridicule MS for not "comming out with things people want" or make jokes about the products they do, and yet you turn around an claim that these people fired are "just victims"?
So what you are comming straight out to say is that MS should keep the people that put out products that nobody wants to buy, right?
I am basing this on all of your past, and recent posts, so tell us why MS should keep people around that you claim have failed the company?

This oughta' be good...
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it's embarrassing
Richard Flude 25th May 2010
No products just talk and people shuffling. What a company!
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@John Zern
ubiquitous one 26th May 2010
So what you are comming straight out to say is that MS should keep the people that put out products that nobody wants to buy, right?

That's the gist of it. Good idea, too... wink
Beyond Bach's departure no changed today at Microsoft.
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share price that is flat over the last 10 years. " god, 10 year before, that's tech bubble at the biggest. What is it now? we are still not out of worst recession. For the record, in past 10 years, stock return is negative, there are only twice in the history of stock market. Yes, you may tell me that, stock A or B is doing better, but that's not rule rather an exception.

If you say if there is anything that msft had done wrong, that's the plan of "longhorn". But that's ipad bag blog of best sutudeg community the modern education news and hardly Baller's fault
their applicable license terms,? according to Microsoft?s overview of the accessmedicalbooks from this we cartecampus to get the internetparalaevangelizacion will have any pcloshwdb that can be estudielenco from program.
licenses ?remain assigned to customers? on-premises hardware with their applicable license terms
Dynamics CRM. Windows Server isn?t eligible for inclusion, and Windows Server operating system
License Mobility kicks in as of July 1. Server applications that can be licensed under the program
with the ability to assign your existing licenses to a authorized Service Provider.?
License Mobility through Software Assurance? is one of these volume-licensing program changes.
cloud-focused licensing changes from the company commence.
But to clear the mobile devices management at such a critical time could hardly be positive, unless things are going very wrong for Windows Phone accessmedicalbooks from this we cartecampus to get the internetparalaevangelizacion will have any pcloshwdb that can be estudielenco from 7.
@OS Reload The consortium is paying $4.5 billion in cash for the Nortel patents, of which Ericsson?s contribution is $340 million, the Wall Street Journal said on June 30. A Reuters report earlier this year said Google was willing to pay $900 million for the Nortel patent portfolio.
@OS Reload Doesn't take a iCrAppleholic getting buzzed on the RDF (Reality Distortion Field) at the iGenius Bar to figure out that Steve realizes he's losing his Magical and Revolutionary edge as a con artist! .....notice that his Fragmentation bullshizt story blew junks in his face as they his App choice flipped his whole story on it's ear!!!! haha..... it's hell getting old and finding his gypsy touch has left him!
@OS Reload I don't see how this is a rant. It actually very well structured, presents clear arguments, is focused, and it addressed the target of investors that want to know more about the rationale behind their strategy. You may or may not agree with it, but it is far from a rant.
@OS Reload Yeah, people love to repeat that "competition is good for users" mantra but it's not true when half of the players in a given market are phoning it in (so to speak.) The half-baked crap being dumped into the market by most of these companies will actually hurt users when they get suckered into buying them. At this point, there are only one or two phones I'd want to own. If there were indeed true competition, with a batch of companies truly trying to compete, not just dumping beta products into the bargain bins in the hopes of snagging the profits of 2-year contracts, then the consumer would benefit. As it stands, not so much.
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Contributr
LOL
Mary Jo Foley 25th May 2010
That is one crazy theory. Ballmer -- unless the MS board fires him -- is going to be CEO as long as he wants. Bach wasn't a CEO rival of Ballmer's...

I think the Windows Mobile division at MS has been stagnating for a long time. Sometimes you need new blood to do that... MJ
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What is going wrong for Windows Phone 7 ?
gjafg Updated - 25th May 2010
@Mary Jo Foley
But to clear the mobile devices management at such a critical time could hardly be positive, unless things are going very wrong for Windows Phone 7.
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Pro
I've left Windows Mobile behind!
I am Gorby 27th May 2010
@Mary Jo Foley
Windows Mobile needs to be fixed, and quickly, before everyone (customers) leaves.
I've put up with WinMo for a few years. Liked it in the beginning. But finally gave up because a lot of nitpicking issues were never looked at.
Just this week, I have gone out and purchased an Android HTC Desire smartphone.
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You know this how?
John Zern 25th May 2010
Do we have a little insider info going on here? Who mentioned that Bach was inline to replace Ballmer, and if so, do you believe that they would let Ballmer fire him?
@mac504

I am also glad that I?ll have the opportunity to continue working closely with him between now and then. And as J makes a similar transition, I look forward to working with him in a new way.
@mac504

I am also glad that I?ll have the opportunity to continue working closely with him between now and then. And as J makes a similar transition, I look forward to working with him in a new way.
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MJ... you are once again
winux_sap 25th May 2010
proving what tech journalism is all about.. i mean, i read this news in other tech blogs first but i knew you would have something more to say and you have. I'm amazed how you have such a long memory to connect dots from different years.. Kudos, you prove over and over that you don't have to provide it as sensational to make it interesting. please keep up your great work.

As for Ballmer's decision goes, he really does care about the company and I'm positive about the changes. He did take windows & bing division under him for a short time in 2008 and it turned out good. windows 7 and bing. i hope he would do the same to organize it before appointing a president. So i'm not totally with you here. let see, what happens though.
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I am with you and Ballmer
jk_10 Updated - 25th May 2010
@winux_sap: these days, very few people has a positive view about S. Ballmer. You have to realize that most people, including many of my Ph.D. friends, don't use their brains that often. They just convinently take whatever appeared on the news papers. My wife has unchangeable faith that products that are advertised on TV are better ones. Same mind set. Any ways, regarding Ballmer. Put facts on table, it is obvious: from mid 2007 to now, see what he has done. I don't feel I can name another person who can handle things that well. I think even BillG has to agree with me.
Spin, Spin, how come you forget Stevos blunders?? Windows CE had years of lead time on iPad and Android, yet they both blew past Windows CE like it was standing still? How come after pouring millions of losses into Xbox, they still can't compete with Wii and Playstation? When phone manufacturers have OS options, they are not going to get wired in with Windows like the PC industry did. Stevo did not understand that when you don't have a monopoly you can't threaten the hardware people. Also he did not seem to understand that the mobile market is the next big thing. When you keep doing what you always do, you keep getting what you always get. Except the desktop market has peaked, and in developing third world countries, they will skip the desktop like they did the wired phone.
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5 reorgs ...
banned from zdnet 25th May 2010
@jk_10
in 5 years. an e&d division that burned 8 bn over 10 years. an online division that lost even more. a share price that is flat over the last 10 years. yes, really it doesn't need an Ph.D to see a picture here.

but, may ballmer stay at the helm of microsoft for as long as it takes!
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@nyye & banned from zdnet. There is really no need reply to all of your points. I just say one thing, leave the rest for yourselves.

"share price that is flat over the last 10 years. " god, 10 year before, that's tech bubble at the biggest. What is it now? we are still not out of worst recession. For the record, in past 10 years, stock return is negative, there are only twice in the history of stock market. Yes, you may tell me that, stock A or B is doing better, but that's not rule rather an exception.

If you say if there is anything that msft had done wrong, that's the plan of "longhorn". But that's hardly Baller's fault, right?

You two just said don't stand for two seconds. I am sorry for being honest.
here's hoping Allard will continue the development of Courier outside of MS. Who knows, maybe a HW company licensing something from MS?
@tkchan007
How about Allard working an an Android-based tablet for Dell or HP. That might be something.
I just see this as creating further delays for Windows Mobile 7 (or whatever it is called this week). When is Microsoft going to get serious about a market where over 1G units are sold every year?
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Contributr
delay in WP7?
Mary Jo Foley 25th May 2010
Hi, David. I don't think this is going to delay Win Phone 7 any further. It's pretty close to RTMing now. The folks working on that are continuing to work for Andy Lees. Neither Bach nor Allard had any direct responsibilities on the development of that platform. MJ
This is just aching for a "I'll be Bach" joke.
/Well, somebody had to do it.
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My Thoughts
skillaid 25th May 2010
As a Microsoft Partner, focused on the business software aspect side of things, I actually see this move as Microsoft trying to get more creative on the E&D, side, including Phone and Tablet. From a business perspective, this is a good thing, because lets face it, Apple has the Form Factor with the iPhone and iPad, and plenty of business users are wanting that form factor in their daily workflows and processes.

From my perspective, I hate to see long time Microsoft people that helped shape the company we all love/hate go. However I believe it has to in order for Microsoft to be serious in the E&D area. I think XBox is for sure a winner, and with Natal coming out soon, this will be even bigger.

I believe the catch up points are the phone and tablet. And I believe personally this is what these moves are about. I am not sure how they will play out in the long term, the short tem actuall seems positive because of fresh looks and ideas. However the long term affects is hard to say from the E&D future point of view, and also from have hard core Softies that have been around for a while leave.

Just my two cents.
-Brandon
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Natal is just a Wii copy.
The Danger is Microsoft 26th May 2010
@skillaid MS can only copy. They don't innovate or invent. EOS!
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Time for Ballmer to go.
curph 25th May 2010
If you look at the companies that Microsoft is losing to they are all led by technology people. Time for Ballmer to go.

http://blog.wildmousesoftware.com/2010/05/new-shakeup-at-microsoft-time-for.html
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Don't know how anyone could see this as good..
dave95. Updated - 25th May 2010
Two top veteran heads are leaving a key Microsoft division. A division everyone expects to be aggressive against their largest competitors, Apple and Google. Now it's in Ballmer's hands?
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Windows Web Services?
xp-client 25th May 2010
Talk about extremely confusing product names! Windows Web Services? :http://channel9.msdn.com/posts/yochay/Windows-Web-Services/ Microsoft products can't have unique names any more? Or Ballmer isn't aware of the WWS component in Windows 7?
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How does this affect Mac users
Macintoshtoffy 25th May 2010
How does the move of MacBU into the same unit which has Office for Windows will impact on us Mac users - will that mean more parity between the Windows and Mac version? Bringing parity between the two platforms will wedge out any possible opportunity that *NIX might try to gain if Oracle chooses to invest more money into OpenOffice.org.
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Mary, can you cover more about J Allard's past?
Dealing Updated - 26th May 2010
It's very interesting and very inspiring, especially for young grads, to see how a guy who just graduated from a university that is not MIT nor Harvard, can apply for the job, then used his own vision and guts to write a letter that shook the whole industry, then climbed the corporate ladder so fast and had made himself one of the most influential people in the tech world.

Wikipedia doesn't have much information about him.
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My rep called me immediately with the news. It was uttered with complete eloquence: SteveB will lead, and will lead without fear. See, fear is what did in Microsoft's former executives in these groups. Microsoft has the single greatest Mobile platform ever. As I said yesterday, I have terminated many an MCSE with Pocket Word. Microsoft owns the mobile music player space already, it is just that nobody realizes it. SteveB has done an amazing job of leading Microsoft. The stock is through the roof, Apple and Google are floundering. The time is ripe for all men to come to the aid of SteveB and buy Zune players.
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Salon: How Microsoft became an also-ran
HollywoodDog 26th May 2010
http://tinyurl.com/265et3d

Steve Ballmer has been CEO of Microsoft since 2000. During his tenure, Microsoft came out with Windows Vista, perhaps the most unsuccessful operating system in modern history (Windows ME doesn't count, since Microsoft's core customer base was using NT/2000); it tried a "Microsoft inside" strategy in digital music and, when that failed, launched the Zune, which also failed; it watched Firefox (and Safari and Chrome) eat a large chunk of its lunch in Internet browsers, the application most people use more than everything else put together; it launched Windows Live, a marketing strategy with no noun behind it, which completely flopped at whatever it was supposed to do; it got blown away in Internet search to the point where it had to re-launch as Bing, a plucky underdog; and in mobile phones, which everyone has known for a decade would be the next big thing, it stuck with its bloated, awkward Windows Mobile for far too long, letting everyone (RIM, Apple, Google, and even Palm) pass it by to the point where it has no customer base left. (BlackBerry rules the corporate market, Microsoft's traditional stomping grounds.) Recently I saw a headline saying that Microsoft is going to try to relaunch Hotmail to make it cool. Really, why bother?
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Shakeup a desperate admission of failure
HollywoodDog 26th May 2010
Rereading Allard's essay offers other clues. There's no question Allard understood what he was looking at, the amazing potential of the Internet as an access-point for information, the commercial possibilities, even the inevitable culture-clash between the natives of the open Net and the Microsofties. I can't fault any of his analysis, or his conviction. But the pitch to the Microsoft brass is primarily framed in terms of how Microsoft should be able to co-opt the Internet to serve its corporate interests. I'm sure that was by necessity, but it offers a hint as to why Microsoft eventually lost its way. Allard's tone is: Here's this important thing that we need to exploit, instead, here is this incredibly cool thing that enables people to do all kinds of cool things: how can we be cool like that?

Allard's focus: The Internet is an important way for us to make money. Apple and Google's focus: How do we make the Internet work for you. Their philosophies are different -- Apple believes in controlling the interface, while Google pursues a more open approach -- but the fundamental understanding is shared. Cool tools to do cool things. Meanwhile, Microsoft just wants market share.

Microsoft, despite J Allard's best efforts, never went native, never really figured out how be part of the culture, instead of a carpet-bagging interloper. Apple was always there, even before the Net, lost its way, and then found it again. Google was born there and never left.

Microsoft has surprised us before, so maybe Ballmer can do it again. But this corporate shakeup doesn't feel like a swift, opportunistic change of direction. It feels desperate; an admission of failure instead of a cagy commitment to seize the day.

http://tinyurl.com/265et3d
@HollywoodDog "Allard's focus: The Internet is an important way for us to make money. Apple and Google's focus: How do we make the Internet work for you."

Meaningless sentence. Internet is an important way to make money for MS, Apple, and Google (especially Google). Otherwise these companies won't be doing all this.
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J Allard's Microsoft Internet essay
HollywoodDog 26th May 2010
@HalfAKilo
Date: January 25, 1994
Subject: Windows: The Next Killer Application on the Internet
http://tinyurl.com/3a3xu9h
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What the author is trying to say...
HollywoodDog 26th May 2010
@HalfAKilo is that Apple and Google are product focused, Microsoft just accepts existing products, nothing new or innovative, as the field, and tries to play a ground game taking a couple points of market share per play until they get a touchdown.
Microsoft had a search portal and site for years and years, didn't do anything with it, and it stagnated until Google came along and demonstrated that it could be made a lot better and do cool things.
Rip Van Microsoft then woke up and recognized the familiar established-market football game and set about doing what they understood.
What they didn't do is spend a couple million bucks being google ten years before google. They could have, but simply didn't think of the idea.
Microsoft does war, not ideas.
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Microsoft can't change or win with Ballmer
HollywoodDog 26th May 2010
Apple, Google and the others generally, as stated in the article I posted sections of, try to paint masterpieces, created from new ideas, informed by vision.
Microsoft and Ballmer, whose thinking and methods are currently one and the same, view everything as a football game. In their romanticized view Microsoft is always the underdog, and the objective of the game is to take yardage (market share) away from the hated rival du jour, primarily by whooping up the troops at sales meetings.
New ideas at Microsoft have always been about taking something somebody else is doing, altering it a little bit and by sheer brute power forcing the line of scrimmage inexorably back to the opponents end zone.
This may have been what built and protected the Windows and Office monopolies. This is all Ballmer and Microsoft know.
I personally don't think this is the recipe for success going forward. Tomorrows technology winners will be based on vision and innovation, not will.
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like
banned from zdnet 26th May 2010
@HollywoodDog
liked your comments. a good read.
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RE: Beyond Bach's departure: What else changed today at Microsoft?
tomlin21-24319035676893835085146735905770 11th Oct
Decent things. I will arrive once more once nfl jerseys 2012 more quickly to learn some a lot more.

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