Microsoft Reorganises to Focus More on Devices

Steve Ballmer, Microsoft CEO has outlined a new strategy for the group, focusing more on devices and services and moving away from packaged software.

He also announced a new organisation for the company, ending its current business groups focused on different products.

The new structure is based around business functions, in order to encourage cross-company collaboration on major product initiatives.

The structure will include four engineering groups: Operating Systems led by Terry Myerson; Devices and Studios led by Julie Larson-Green; Applications and Services headed by Qi Lu; and Cloud and Enterprise led by Satya Nadella.

Dynamics will still have a separate group, led by Kirill Tatarinov, and Eric Rudder will head a group working on Advanced Strategy and Research, for longer term policy.

Tami Reller remains head of the Marketing Group, and Mark Penn will help her lead new centralized advertising and media functions. Kevin Turner remains COO, in charge of sales, field marketing, services, support and stores as well as IT, licensing and commercial operations, and the Business Development and Evangelism Group, headed by Tony Bates, will focus on key partnerships, such as work with OEMs, silicon vendors, key developers, Yahoo and Nokia.

As part of the changes Microsoft Office head Kurt DelBene will be retiring, and Ballmer's adviser Craig Mundie will leave at the end of 2014. Rick Rashid also will step down from running Microsoft Research to work on OS research.