It would be a better option than the present mediocre struggle. The smaller groups, each under new leadership, would HAVE to do good work, in order to survive. (The structure and financing also needs to put them into that sink-or-swim position).
The results would not be predictable, though, because some would have talented managers and staff, while others might not.
I'd disagree with you about having Cloud in the same group as classic Windows software. I believe there is little compatibility, either practically or philosophically. Putting them together would be highly corrosive and wasteful of their efforts because they'd be arguing!
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