Microsoft shuffles its Cloud and Enterprise team, further melding software and cloud

Microsoft is making organizational tweaks to its Cloud and Enterprise business unit, bringing closer together its enterprise software and cloud services products and teams.
Written by Mary Jo Foley, Senior Contributing Editor

Microsoft is tweaking its Cloud & Enterprise business unit, and more tightly integrating its Windows Server, SQL Server, System Center and Dynamics CRM and ERP teams into its cloud organization, in the process.

Scott Guthrie, the Cloud & Enterprise Executive Vice President, notified his team of changes to the org via an internal e-mail on October 22, according to my contacts.

October 22 also happened to be the day Microsoft announced its Q1 FY 2016 earnings, which showed progress for Microsoft's new "Intelligent Cloud" reporting group, which includes on-premises software, cloud services and consulting services combined. Intelligent Cloud isn't synonymous with "commercial cloud," however. Microsoft officials have said they expect commercial cloud revenues, which includes Azure, Office 365, Dynamics CRM Online, Power BI and more of its business cloud services, to reach a $20 billion annual run rate by 2018. As of yesterday, commercial cloud is at an $8.2 billion annual run rate, officials said, well on its way to achieving the $20 billion target.

Guthrie's revised organization, announced yesterday, includes the Cloud Infrastructure, Data and Analytics, Business Applications and Application Platform, Enterprise Mobility and Developer Tools units.

The new structure looks like this, according to sources of mine who've seen the e-mail:

In terms of Cloud Infrastructure, the Azure team will continue to be led by Jason Zander. The Cloud Server Infrastructure team, headed by Bill Laing, is reporting to Zander and is charged with developing server hardware used to run Microsoft's cloud services.

The Enterprise Cloud Group, headed by Mike Neil, will incorporate the Hybrid Storage and Data Protection team; Azure Backup, Azure Disaster Recovery and System Center Data Protection. This team is where Windows Server, System Center, Operations Management Suite, the Azure Stack private-cloud OS and StorSimple storage appliance all sit.

Data and Analytics now combines the Information Management and Machine Learning and Data Platform teams into a new single Data Group. Joseph Sirosh is leading this new group, which is responsible for SQL Server, SQL DB, Cortana Analyics Suite, HD Insight (Hadoop), Data Lake, Stream Analytics, Data Factory and Machine Learning.

Ranga Rengarajan is moving from heading up the Data Platform team to a new role in research, working for Technology and Research Executive Vice President Harry Shum. He'll be overseeing the Microsoft Global Development Centers and helping to bring incubations from Microsoft Garage to the product teams.

The Business Apps team is where Microsoft's Dynamics CRM and ERP businesses will sit. As part of a reorg earlier this year, the CRM and ERP engineering teams moved into Cloud & Enterprise earlier this year.

Bob Stutz will continue to head up the CRM team. And a new Business Applications, Platform and Intelligence team will now be led by James Phillips. Phillips, who has been running Microsoft's business intelligence products, is now going to be responsible for Power BI, Dynamics ERP, the Azure AppService, Project Siena, Media Services, ASP.NET and other .NET Framework components.

The Enterprise Mobility team encompasses the Identity Team, led by David Treadwell; Enterprise Client and Mobile, still led by Brad Anderson; and Security Team, headed by Bharat Shah.

Then there's Developer Tools. With the recent announcement that Soma Somasegar would be leaving his role as head of Microsoft's Developer Division, Julia Liuson is taking over as head of the Visual Studio Tools and .NET team, while Brian Harry will continue to run the Visual Studio Online Team.

When I asked, a Microsoft spokesperson confirmed that the specifics above from the Guthrie mail were accurate.

For those who noticed a recent change on her Twitter bio, Julia White -- who has been the public face for Office and Office 365 for a while now -- is now taking on a new role in Cloud & Enterprise marketing, where she will be leading cloud platform product management across infrastructure and the new application platform/service. (Her replacement in Office marketing has not yet been named, a spokesperson confirmed.)

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