Microsoft reorg: Who's in; who's out

Microsoft reorg: Who's in; who's out

Summary: On February 14, Microsoft announced a corporate reorganization affecting many of its divisions.As with any Microsoft early-year reorg -- which typically occur after the company's fiscal mid-year reviews -- there are winners and losers. Check out my slideshow of who's in and who's out as a result of today's changes.


On February 14, Microsoft announced a corporate reorganization affecting many of its divisions.

Microsoft reorg: Who’s in; who’s outAs with any Microsoft early-year reorg -- which typically occur after the company's fiscal mid-year reviews -- there are winners and losers. Check out my slideshow of who's in and who's out as a result of today's changes.

As of today's reorg announcement, a bunch of execs got fancy new titles and promotions. A few veterans are out -- or on their way out. Keep in mind that some of the execs mentioned in today's official press release from Microsoft actually announced their departures months ago. Microsoft swept up all of the big comings and goings into today's announcement for simplicity's sake (not to mention to keep the noise about executive departures to a minimum).

The biggest winner in Microsoft's Valentine's Day reorg, in my opinion, was Bill Veghte. Veghte used to be Corporate Vice President of the Windows Business Group. Now he is Senior vice president of the newly merged Online Services & Windows Business Group. Vehghte's "expanded role" calls for him to spearhead "all end-user business strategy, sales and marketing across Windows Client, Windows Live, MSN and Search. In addition, he will continue to have shared responsibility for OEM sales."

(At Microsoft, a Senior VP title outweighs a Corporate VP one, for those trying to make sense of the ever-changing Microsoft org chart.)

Check out the slideshow of Who's Hot and Who's Not -- after today's Microsoft reorg.

The biggest mystery, post-reorg, remains Senior Vice Presient and former aQuantive CEO Brian McAndrews. No new title, no noticeable new responsibilities -- yet. Company watchers are betting on McAndrews to become the new head of the Yahoo acquisition (whenever and if ever that deal is consumated.)

Who's on the outs after today's reorg?

* Online Services Business chief Steve Berkowitz is leaving, as previously rumored, (though not until August 2008).

* Mobile Communications chief Pieter Knook is out and replaced by former Server and Tools manager Andrew Lees.

* Former Windows marketing chief Mike Sievert is out, replaced by Brad Brooks, who is now Corporate Vice President of Windows Consumer Product Marketing. (Interesting that the word "consumer" is in there. Microsoft has had an informal division between consumer and business marketing in Windows, but it's rare to see anyone's title clearly call it out.)

* Sanjay Parthasarathy, former Corporate VP of Developer and Platform Evangelism, is out of his DPE spot, as reported a month ago; his replacement is Walid Abu-Habda. Still no word on what Parthasarathy's next move is. Last word from him was he intended to stay at Microsoft in some new role. Update: Now we know what that role is: Corporate Vice President, Startup Business Accelerator.

* Scott Di Valerio, former head of Microsoft's OEM business who resigned months ago, is gone and now replaced by Corporate VP Steve Guggenheimer.

Other newly minted Microsoft Senior VPs, as of today, include:

  • Chris Capossela, senior vice president, Information Worker Product Management Group.
  • Kurt DelBene, senior vice president, Office Business Platform Group. \
  • Antoine Leblond, senior vice president, Office Productivity Applications Group.
  • Andy Lees, senior vice president, Mobile Communications Business. Lees takes the place of Pieter Knook, who is joining Vodafone.
  • Satya Nadella, senior vice president, Search, Portals & Advertising Group. According to the Microsoft press release, "Nadella will continue to lead Microsoft’s engineering efforts across Live Search, Microsoft adCenter, and Subscriptions, Points and Billing platforms. He will also take over responsibility for MSN programming and engineering." Steven Sinofsky is still the Senior VP in charge of engineering for Windows Live (and Windows).
  • S. Somasegar, senior vice president, Developer Division.

A few more promotions that I see as interesting:

* Scott Guthrie, a former general manager in Microsoft's Developer Division, gets a promotion and a new title of corporate vice president, .NET Developer Platform. His responsibilities don't change, however, according to Microsoft: He will continue to oversee "several development teams responsible for delivering Microsoft Visual Studio developer tools and Microsoft .NET Framework technologies for building client and Web applications."

* Roz Ho -- one time head of Microsoft Mac Business Unit turned general manager working on a secret project in the Microsoft Mobile and Entertainment Division -- is now officially corporate vice president, Premium Mobile Offerings. "Ho will lead the new Danger Inc. team and continue to focus on various consumer-focused premium mobile offerings in mobile communications," Microsoft officials said. (Can you say Pink and Purple?)

What else do you make of these latest organizational changes?

Topics: Windows, Microsoft, Mobility, Operating Systems, Software


Mary Jo has covered the tech industry for 30 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).

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  • Not much important

    This is further indication of how a once might tree has fallen and is rotting further.

    All of the Ballmerian box shuffling cannot hide this fact: he is incapable of
    managing change and producing shareholder returns because he cannot produce
    innovation that the market accepts.

    Xbox is an ROI failure; Vista is a market failure; Search is a market failure - the
    stalled Yahoo acquisition demonstrates this; WM on which the bloatmeisters have
    lavished years and billions has, in a short space of time, been overtaken by the
    iPhone - with further evidence of its irrelevancy and unuse, the recent disclosure
    that iPhone web usage is 60 times greater! - and its uselessness as an MSFT product has been demonstrated; about the Zune, the less said, the better; it is
    simply an embarrassment - what were they thinking?!.

    No amount of yearly reviews and other HR folderol will conceal the lake of top
    management capability.

    Simply put, Ballmer is, as he is portrayed in his YouTube, a buffoon.

    He must go. Soon.
    Jeremy W
  • Maybe Microsoft should emulate Apple (again)...

    and concentrate on publicizing products, not org charts.

    But then, when you look at their products.......
    • You mean give up 90% of the market

      Naw, why would they want to do that?
      • How would that give up 90% of the market?

        Unless they abandon their legacy win32 app compatibility, which nobody is suggesting. Although I think you have.
        Michael Kelly
        • So how many times, now has MS re-organized

          in the last six months.

          Endless shuffling of chairs among management is generally not a good sign.
    • Emulate Apple!?!?!?

      OK. I got your attention.

      Yes and no. Apple [b]knows[/b] how to market. What Apple truly sucks at is meeting client expectations.

      Examples: iPhone. Fantastic. Too bad you are stuck with [b]ONE[/b] service provider. Worse, they attempted to rig the iPhone to keep buyers from choosing their own provider.

      MacBook Air. Apple made it sound like the hottest thing since sliced bread. But they surprised everyone by keeping it free of any wired connectivity. Worse, with a bit of research you find out it's not the lightest and smallest. Thinnest yes.

      Microsoft is also guilty of "overselling" it's products e.g. not being completely truthful about features and improvements, tending to make things sound much better (sexier, slicker) than they actually are. But Microsoft does eventually meet the promises it makes.

      So if M$ had the marketing wow of Apple maybe they'd have something unbeatable.
      • Re: iPhone

        Guess that's why they're not selling any, huh?

        By the way, it takes more than marketing wow to have something unbeatable. It takes "wow" products. Seen any from Microsoft recently? Maybe I missed them.
        • But what is "wow"?

          The actual functioning of a product, or the perception of the functioning?

          Everybody "wowed" at the Emperor's new clothes...
  • Goodmorning Mary Jo ; HAL has need of AMD to drop CABINET>pdb from GB email

    NEW! A thirty four credits of University and Community College may only get me a small displaced dirtbike for reck-time. Components for trade: AMD Only ! Please email me.

    That's right, you already know me.
  • All who are willing

    To sell their souls to the devil are
    welcomed in Redmond. Others need not apply.
    Kindly submit your applications elsewhere,
    please, and take you worthless resumes with

    Those of you who have managed to infiltrate
    our impenetrable security defenses, beware!
    You are on your way out. Subito. Presto.
    Speedily. Immediately. Rat now, even.
    Interlopers not welcome.
    Ole Man
    • or take another bite of the Apple, Inc

      that the devil himself controlls...
  • Some of you guys need to lay of the Kool-Aid

    XBox a failure? Vista a failure? Record profits a failure?

    Sure, Microsoft has some big challenges ahead of it. How to do software as a service, web adverstising, etc, but it will get its hands on Yahoo, one way or another and that should help out a lot in the web space.

    Micorosoft is a far more capable company than the Linux joes like to admit. Not perfect by any stretch, but very capable.
    • Online Office

      That M$ renamed one of their divisions to include Online Office tells me volumes. They aren't going to get caught with their pants down (for long) again. heh heh heh

      Course they are way behind on this effort compared to the plethora of online productivity suites already available. But if they are as thorough as they were with Internet Explorer the "come from behind" on this effort will be a memory in a year.

      Microsoft's biggest problem in recent memory is Vista. Apparently the team in charge was hard to dissuade from it's course. But if M$ is good at anything it's good at recovery.
      • Plethora?

        Name one, let alone a plethora, "online productivity suite". I wont even challenge you to name one thats commercially viable.

        What are you talking about, Google apps?

        Please. If anything, the pretenders to the Office throne have been TOO SLOW in actually delivering on their so far empty promises of "cloud computing".

        Google writer and Google calc arent going to cut it. There is no "come from behind" here; it is an all out race to an end that no one has yet delivered on and, to be honest, isnt really proven from a commercial viability sense.

        Vista is "a problem" in the eyes of MSFT bashers, tech columnists, bloggers, bashers and other internet loons. Commercially, it's doing fine and even Apples idiot smeer campaign didnt stop the company from delivering good numbers to investors.

        Yeah yeah, "but its not fair! its shipping on new PCs! that shouldnt count!!!" Well, meanwhile it is and it does and the end result will be that in short time Vista will replace XP and EXACTLY the same as XP replacing 2000 and 2000 replacing 98, no one will remember this idiotic nit picking and bellyaching.

        This crap has been going on since MS-DOS 3.31 was replaced by DOS 4.0. It happens on the Mac also... Everytime the System version rolled forward and then big time when Apple completely cut off ALL legacy users and went to OSX.

        People just hate change and LOVE complaining.
        • Yeah, right!

          Microsoft will be rolling in money soon,
          with profits just like GM.

          Progress, ever downward!
          Ole Man
          • LOL!

            I Guess no one takes any investmentt stategy from you, with good reason. ;)
          • Correct! Almost...........

            Those that do still have their money......
            and good sense 8-)
            Ole Man
    • Yes XBox and Vista are failures

      ROI on XBox is horrible due to MSFT having to replace pretty much every power supply, and extending the warranty period.. this cost MSFT billions. Not sure of the exact amount, but I think it was 1.7 billion. Maybe the reason why MSFT is having record profits is because they are selling more copies of XP than ever.. due to people replacing their Vista installs.
  • Typical, only focusing on the major players...

    What you don't talk about is how this is used as a stick to beat lower level employees; as a tool for revenge.

    After one of these "purges" whole groups of regular workers get targeted. I was there way back as a consultant, so I had no vested interest really (always keep my breifcase packed next to the door of my office, and always have). I did however get a lesson is ruthlessness and pure spite.

    That is one of the reasons I never tried to again work for Microsoft, advised friends not to work there and remained a consultant until I retired.
  • BallmerSoft Forming!

    On that great day of deliverance coming up in June, all of
    the old guard will be gone and I will have my "rubber-
    stamp" team in place! It will be glorious!