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6/28/2006
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Microsoft Reorgs Business Division

Orlando Ayala moves over to the new emerging segments group; Reller, McCollum, and O'Brien move up.

Microsoft continues to revamp and remodel its applications business.

In the latest reorg, announced internally on Wednesday, Orlando Ayala, the COO of Microsoft Business Solutions (MBS) and senior vice president of Microsoft's Small and Midmarket Solutions and Partners group (SMS&P), is moving into a new position aimed at boosting Microsoft's presence in "emerging segments."

MBS is the group charged with pushing Microsoft's ERP and CRM lineup and last fall was moved into an overall Microsoft Business Division headed by Jeff Raikes, group president.

Ayala's COO duties will be divvied up by his former direct reports Tami Reller, Craig McCollum and Eddie O'Brien. That triumvirate, which drove marketing, sales and operations respectively, will now report to Doug Burgum, senior vice president of MBS.

Ayala's SMS&P shoes will be filled by Eduardo Rosini, who becomes corporate vice president for worldwide SMS&P reporting to Microsoft COO Kevin Turner.

Ayala, now senior vice president of the new Emerging Segments Market Development group, also will report to Turner.

Turner joined Microsoft last year after 20 years at Wal-Mart and is seen as a rising star in top management at the company.

On the partner front, Allison Watson, vice president of worldwide partners, was promoted to corporate vice president. As one of 110 corporate vice presidents in a company of more than 70,000 employees, Watson will be a prominent partner-centric voice in a top leadership post, Ayala said.

Underlying all this is a shift of SMS&P, which had reported to Burgum within MBS, over to Turner's group. A spokeswoman said SMS&P results will remain on the MBS P&L, however.

In an interview with CRN, Ayala said his new group will target constituencies in "the middle or at the bottom of the economic pyramid where accessibility to our technology and resources is not high."

Microsoft's current enterprise and SMS&P units target the more affluent top tier of that pyramid, he noted, and the company needs to better penetrate the remainng segments. He cited Microsoft's Flexgo subscription pay-as-you-go model as an example of the type of thing the group will do. The goal is to make the technology affordable to people who might not have the wherewithal to pay the going rate for it in the developed world.
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