Thursday Report: The Reason Behind Microsoft’s Reorganization

Jaycee De Guzman July 10, 2013 0

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According to the AllThingsD blog, for at least five years, the company will reveal the issue related to Microsoft’s reorganization to compete better in the world of web-based mobile devices services. The changes include the shift of duties and responsibilities to top executives and to eliminate the overlapping 98,000 employees of the company.

Task and Responsibilities of Microsoft’s Reorganization

Satya Nadella will head the business-focused products and new cloud computing units. Satya will manage the current server business. The co-head of Windows operating system business, Julie Larson-Green will lead the company’s hardware endeavors, including the Surface tablets and Xbox video game console. Steve Ballmer, the Chief Executive officer is workng hard to step up the presence of the company on mobile devices, because the computer industry of today have declined constantly. Recently, Amy Hood was appointed as a chief financial officer, while Lisa Brummel will be the chief people officer. Both of them will seal their hands on regulatory and human resources created by the restructuring of Microsoft’s reorganization.

The Announcement

Last October, Ballmer announced to shareholders that Microsoft at the present sees itself as a company of devices and services rather than a software inventor and creator. It was July 2008 that the company had their reorganization when Ballmer divide the Platforms & Services of Microsoft into 3 units – Online Services, Windows, Server and Tools. Microsoft’s shares have increased almost 30% this year, helped by public meetings which started late in April upon the release of the company’s strong earnings and revenues.

Thursday Report The Reason Behind Microsoft’s Reorganization  (2)

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Could Some Top Executives Be Out From Microsoft’s Reorganization?

Currently, there are 5 popular executives: President of Server and Tools Satya Nadella, head of Online Services Qi Lu, newly appointed Vice President of Windows Division Corporate Julie Larson-Green, president of Skype Division Tony Bates and leader of Windows Phone Terry Myerson. Kevin Turner, who is the chief operating officer has barely mentioned. Reporter from All Things D, Kara Swisher guesses that it could mean that he is considering a cue from the previous Xbox executive Don Mattrick.

Unfortunately, the Eric Rudder’s name has left on the lists during Microsoft’s reorganization. Recently, Rudder took over for Craig Mundie as a chief technology strategy officer. On the other hand, Mundie functions as a semi-retired advisory role. The president of the Business Services Division will be Kirill Tatarinov. Some have guessed that DelBene have resigned from Microsoft.

Consumers Prefer Smartphone Than Computers for Surfing Web

According to the survey, teens ages 14 to 17, were most likely to say that phones were the main way to access the Web. While low-income households were less likely to use the Internet, those who owned phones were more likely to use their cell phones as the major access to the Web. It is easy to say that consumers are increasingly turning to mobile devices, like tablets and Smartphones instead of traditional PCs, while the software products are the foundation of Microsoft’s annual revenue $74 billion business. This means that, as the young generation mobile surfers come of age, the way companies do business and the method marketers advertise should continue to evolve.

Managements and Profitable of Microsoft’s reorganization

Qi Lu, the head of Microsoft’s money-losing online group had made his new structure. He manages the Microsoft Office and other apps. On the other hand, Tony Bates would also supervise the Microsoft’s business development, which includes obligations and corporate strategy. According to the analyst David Smith, what the company has worked in the past had led some profitable business, but when people are attached to their personal goals, they may start to fail on the right way for the future.

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