Microsoft Reorganization Puts Focus on Mobile, Entertainment

Thursday, 11 Jul 2013 03:44 PM

By Morgan Chilson

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A reorganization announced at Microsoft on Thursday is a much-anticipated move designed to make Microsoft more competitive in today’s technology market. The software giant is restructuring with an eye toward improving its mobile and entertainment offerings, CNBC reported.

Lacking a “coherent mobile strategy” hurt Microsoft in recent years as consumers dropped their personal computers in favor of smartphones and tablets, CNBC said.

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While many technology experts greeted Thursday’s plan with an attitude of “it’s about time,” some still were concerned that Microsoft could deliver on its promises.

Motley Fool’s technology analyst Andrew Tonner told CNBC that given the company’s lack of tangible results in the last decade, he was skeptical about what would happen.

Part of the restructuring involved changing senior management at the company, USA Today reported.

In an analysis, the newspaper said the message from Microsoft CEO Steve Ballmer wasn’t really new because he’s been trying to shift the company toward a “devices and services” focus. But the importance, the “urgency,” has strengthened.

The restructuring, called “One Microsoft,” organized the company’s engineering division into four primary areas focused on operating systems, applications, cloud computing, and devices, Ballmer said in a release. Julie Larson-Green is now in charge of devices and studios engineering, and Terry Myerson will lead the operating systems and engineering section. Kurt Delbene, president of Microsoft Office, is retiring.

A “one strategy, one Microsoft” will allow the company to organize for speed and strategic alignment, highlighting the products and services that meet the needs of customers who want mobile technology, Ballmer said in the release.

“Although we will deliver multiple devices and services to execute and monetize the strategy, the single core strategy will drive us to set shared goals for everything we do,” Ballmer said. “We will see our product line holistically, not as a set of islands. We will allocate resources and build devices and services that provide compelling, integrated experiences across the many screens in our lives, with maximum return to shareholders.”

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