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Microsoft shakes up its business

Microsoft is restructuring its business into three divisions with their own presidents. The company also announced that Jim Allchin, group vice-president of platforms, will retire at the end of next year after the launch of Windows Vista, the next version of the Windows operating system.

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Microsoft is restructuring its business into three divisions with their own presidents. The company also announced...

that Jim Allchin, group vice-president of platforms, will retire at the end of next year after the launch of Windows Vista, the next version of the Windows operating system.

The three new divisions are:

  • Platform products and services, which will be led by Kevin Johnson and Allchin as co-presidents
  • Business, led by Jeff Raikes as president
  • Entertainment and devices, led by Robbie Bach

Johnson is currently group vice-president for worldwide sales, marketing and services, and will be solely responsible for the platform division once Allchin retires.

Raikes is currently group vice-president of information worker business, while Bach is senior vice-president for the home and entertainment division and Microsoft’s chief Xbox officer.

In addition, Ray Ozzie, the creator of Lotus Notes and current chief technology officer at Microsoft, will take responsibility for driving the firm’s software services strategy across the three new divisions.

Microsoft chief executive officer Steve Ballmer said of the changes, “They are designed to align our business groups in a way that will enhance decision-making and speed of execution, as well as helping us to continue to deliver the types of products and services our customers want most.”

Ballmer said a key aim was to integrate the company’s software products more closely with services to customers.

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