Microsoft Details Newest Restructuring

Microsoft on Thursday unveiled a reorganization that aligns its Windows and developer-tools divisions into a single group aimed at delivering Web-based services.

Platforms group VP Jim Allchin and developer group VP Paul Maritz will take side-by-side charge of a newly created division focused on developing "next-generation Windows services"--software programs on Internet servers that interact with desktop and Web applications. Microsoft in early May plans to detail its strategy for morphing its products into on-demand services that consumers and businesses access via the Internet. Within the new division, as yet unnamed, Allchin will oversee the "technical architecture, development, and delivery of new products," according to a Microsoft spokeswoman. Maritz will concentrate on Microsoft's overall platform strategy, product planning, business development, and tools development. Both will continue to report to president and CEO Steve Ballmer.

The Microsoft spokeswoman calls the changes incremental. "This is not a large organizational shift," she says. "It's more a refinement of the work [chairman and chief software architect] Bill [Gates] and Steve put into motion last year." A year ago, Microsoft was restructured to create four customer-driven divisions: platforms, tools, business productivity, and consumer products.

Thursday's move also forged five "solutions groups" to respond to customers' demands for new technology, according to a statement released by Microsoft. The groups are Windows DNA and Web services, IT infrastructure and hosting, client PCs, digital media, and embedded appliance platforms.