• Illustration: Platforms Group Reorganization, Summer 2003

The effects of Microsoft's spring 2003 reorganization are trickling down to the rest of the company. Most notably, Eric Rudder has been promoted to senior vice president of the Server and Tools Division, where he will be responsible for the development, marketing, and financial performance of Microsoft's server applications and developer tools. The newly released July 2003 Directions on Microsoft OrgChart also shows streamlining in Microsoft's portable device business, with embedded OSs moving from the Windows Division to Vice President Pieter Knook, and changes to the sales force reflecting Kevin Johnson's promotion and a tighter focus on particular business segments.

This article includes all changes to Microsoft's organization at the vice-presidential level and higher, as well as selected changes at the general manager level, since the publication of the Mar. 2003 OrgChart.

Platforms Group Streamlining Under Rudder

The most significant organizational changes occurred within the Platforms Group led by Group Vice President Jim Allchin. Streamlining has reduced Allchin's vice-presidential direct reports from four to three, as several of his previous reports have been consolidated under Rudder. Allchin has also gained responsibility for Microsoft's mobile device business, with Vice President Pieter Knook now reporting to him instead of CEO Steve Ballmer.

(For a graphical overview of the changes in Allchin's organization, see "Platforms Group Reorganization, Summer 2003".)

Rudder New Server and Tools Leader

Rudder was formerly senior vice president of the Developer and Platform Evangelism Division, where he was responsible for developer tools (such as Visual Studio .NET), technical information for developers, and developer evangelism.

In addition to these duties, Rudder will oversee all of the server products formerly in Paul Flessner's .NET Enterprise Servers Division, as well as storage and management products under Senior Vice President Bob Muglia. (Both Muglia and Flessner previously reported to Allchin.) Rudder will also be singly responsible for profit and loss (P&L) in the company's Server and Tools business segment, a duty he formerly shared with Flessner.

Paul Flessner has a new title: senior vice president, SQL, Exchange, and E-Business Server Development, and he will be responsible only for development of those products ("E-Business" refers to e-commerce-related servers such as Commerce Server). In his previous role, Flessner was responsible for product planning, development, and marketing of these products. SQL Server Vice President Gordon Mangione, Exchange Server Vice President Mohsen Al-Ghosein, and E-Business Servers General Manager David Kiker will continue to report to Flessner.

Simon Witts, vice president of the Enterprise Partners Group (EPG), will now report to Rudder. Witts, who until a few months ago served as vice president for Sales and Marketing in the Europe, Middle East, and Africa (EMEA) region, is responsible for sales and marketing strategies aimed at enterprise customers, including relationships with large global accounts and delivering tools, training, and support to field sales forces (of both Microsoft and its partners). Witts also has responsibility for enterprise sales strategies previously overseen by Ralph Young, who reported to Flessner; Young has moved to a new role overseeing sales to enterprises in the western U.S.

Darren Laybourn, vice president of the .NET Business Framework, a proposed development platform for business applications, has moved out of the Business Solutions Group under Satya Nadella and instead will report to Visual Studio General Manager Craig Symonds, who reports to Rudder.

Brad Goldberg, the general manager in charge of server platform marketing, will report to Rudder rather than to Flessner.

Bob Muglia is now senior vice president of the Enterprise Storage and Management Division and will report to Rudder rather than to Allchin. Muglia's group will continue to be responsible for the evolution of Microsoft file systems, network-attached storage (NAS), storage area network (SAN), backup, and related products. Muglia also gains responsibility for Vice President Kirill Tatarinoff's Management Solutions Group, which oversees the development and marketing of Microsoft management solutions, including System Center, Systems Management Server (SMS), Microsoft Operations Manager (MOM), and Application Center. Tatarinoff previously reported to Windows Senior Vice President Brian Valentine.

Knook Gains Embedded, Automotive

Pieter Knook's new title is vice president of Mobile and Embedded Devices (MED) Group, and he now reports to Allchin rather than to Ballmer.

In mid-2002, Knook became vice president of network service providers and mobile devices, and he has been responsible for establishing and maintaining relationships with network service providers, as well as overseeing development, marketing, and sales for mobile devices. He has also been in charge of P&L for the CE/Mobility business segment since that time.

In his new role, Knook keeps these duties and gains responsibility for General Manager Todd Warren's Embedded Group, which oversees the development of the Windows CE and Embedded OSs. (Warren previously reported to Brian Valentine.) In addition, Knook gains responsibility for some Windows Automotive initiatives under Dick Brass.

Dick Brass is unique at Microsoft in that he now has two bosses: as vice president of Windows Automotive, Brass reports to Knook. However, as vice president of Emerging Technologies, he will continue to report to Senior Vice President of Advanced Technologies Craig Mundie and will be responsible for organizing and evangelizing emerging technologies such as electronic newspapers and magazines, advanced reading efforts, and corporate strategy and policy issues related to new technologies.

Maria Martinez has been hired by the MED Group as vice president of Network Service Provider Solutions, where she will be responsible for solution units focusing on line-of-business applications for hosting and telephone companies, as well as the Microsoft Partner Solution Center (MPSC), a technology laboratory that brings hardware and software companies and their customers together with solutions providers and systems integrators to develop complex, multivendor solutions based on Microsoft platforms. Martinez will report to Knook.

Client Group Shifts

A couple of notable changes have also taken place under Senior Vice President Will Poole, who reports to Valentine and is in charge of the Windows Client business.

Tom Button replaces Rogers Weed as vice president of Windows Client Product Management, where he will be responsible for product planning and marketing for desktop OSs. Button was previously vice president of Developer Tools under Rudder, where he was responsible for product management, evangelism, and business development for Microsoft's tools, application server, and other products for the developer community. Button's former reports will now report directly to Rudder; Weed is on a leave of absence.

Bill Mitchell has been promoted to vice president of Tablet PC and Smart Personal Objects Technologies (SPOT). Mitchell had previously been general manager of the SPOT initiative—Microsoft's plan to develop small objects, such as watches and alarm clocks, that connect to a low-bandwidth wireless network to download data. Now, Mitchell will also have responsibility for Tablet PC, replacing former vice president Alexandra Loeb. Mitchell continues to report to eHome Vice President Rick Thompson, who reports to Poole.

Changes in Productivity and Business Services

There have been several notable changes in Productivity and Business Services Group Vice President Jeff Raikes's organization. Some new organizational details about Orlando Ayala's recently formed Small and Mid-Market Solutions and Partners (SMS&P) Group have emerged, and two vice presidents in the Office Division have been reassigned.

Ayala Gains New Reports

Earlier in 2003, Orlando Ayala was named senior vice president of the SMS&P Group, where he will oversee sales and marketing strategies to small and mid-size businesses, including expanding the Business Solutions reseller channel and evangelizing the .NET Business Platform, a set of technologies and tools for building business applications, to systems integrators and vertical ISVs.

Ayala's organization is now being fleshed out and has gained three new vice presidents:

Lindsay Sparks, vice president of Worldwide Medium Business, will continue to oversee sales, marketing, and services initiatives targeting mid-size businesses around the world, but will report to Ayala instead of Raikes.

Allison Watson, vice president of the Worldwide Partner Sales and Marketing Group, will remain responsible for worldwide partner strategy and programs, but will report to Ayala instead of Sparks.

Steven Guggenheimer takes on a new role as vice president of Small Business and Partners, where he will be responsible for Microsoft’s global small business framework and execution, and operations for all partner teams in the SMS&P Group. Previously, Guggenheimer was senior director of Customer and Partner Experience.

Changes in Office Division

Senior Vice President Steven Sinofsky's Office Division has also seen some shuffling, as follows:

Ted Johnson, formerly the vice president of the Business Tools Division, where he oversaw Visio, Project, and Publisher, is moving to a new unannounced position.

Ralf Harteneck, formerly vice president of Communications and Meeting Services, where he was in charge of Outlook and PowerPoint, has gone on a temporary leave of absence. PowerPoint goes to Visio General Manager Richard Wolf; a future hire will have responsibility for Outlook.

Kurt DelBene, whose job title has changed to vice president of the Office Server Group (previously, he was vice president of Authoring and Collaboration Services), will now oversee Project. DelBene will remain responsible for Windows SharePoint Services, SharePoint Portal Server, and FrontPage, continuing to report to Sinofsky.

Peter Pathe, whose job title has changed to vice president of Office Authoring Services (previously, he was vice president of Structured Document Services) will gain control of Publisher while continuing to oversee Word, OneNote, and InfoPath. He will continue to report to Sinofsky.

Other Product Group Changes

Minor organizational changes have been announced in Senior Vice President Robbie Bach's Home and Entertainment Division and in Senior Vice President David Cole's MSN and Personal Services Division.

Deborah Black has been appointed vice president of Kids and Education, where she'll oversee online and CD learning products, such as Encarta. She will report to Lisa Brummel, vice president of Home Products and Services, who reports to Bach. Black has been missing from the OrgChart since mid-2002, when she was vice president of the management business unit in charge of management products, such as SMS, MOM, and Application Server.

Brian Arbogast remains a vice president, but his group is now called the Identity, Mobile, and Partner Services Group. Previously, it was the .NET Core Services Platform Group, but Microsoft is moving away from the .NET brand name except in reference to a development platform and associated tools. Arbogast will continue to oversee development of Passport, partner management, and mobile services, and will still report to Cole.

Sales Force Rearranged Under Johnson

Most of the organizational changes in the sales force reflect the spring 2003 promotion of Kevin Johnson to senior vice president of the Worldwide Sales, Marketing, and Services Group, where he replaced Orlando Ayala. Essentially, Microsoft has decided not to fill Johnson's former position as head of U.S. sales, but instead has split his former duties between Vice President Gerri Elliott, who picks up most of the U.S. field for enterprise sales, and Vice President Andrew Lees, who gets the U.S. sales teams for small and mid-size businesses.

A new field sales taxonomy has also been established to focus more on specific business segments instead of regions. Now, there are separate regional sales managers focused specifically on enterprises and on SMS&Ps. In addition, new sales teams will focus on the public sector (government sales) and commercial sector (sales to specific vertical industries).

Note that the SMS&P teams in the sales force are separate from Ayala's SMS&P Group—the sales teams are direct points of contact for customers, whereas Ayala's group determines general sales strategies for these customers and provides support to the sales teams.

Gerri Elliott Gains Enterprise Sales

Gerri Elliott remains the vice president of the Industry Solutions Group, where she manages field-based sales and consulting for vertical industries, such as banking and transportation. The following vice presidents now fall under her command:

Erik Renaud has been promoted to vice president of the Enterprise Sector, with expanded responsibility for serving enterprise customers in all U.S. sales and service districts. He was previously the vice president in charge of sales for the Central Region of the U.S. He now reports to Elliott instead of Johnson.

Paul Houghton has had his title changed from vice president of the Southern Region to vice president, Enterprise Sector, South. He now reports to Renaud instead of Johnson.

Geoff Nyheim, a former general manager, has been promoted to vice president, Enterprise Sector, Central, taking Renaud's former responsibilities. He reports to Renaud instead of Johnson.

Brian Boruff is now vice president, Enterprise Sector, East, reporting to Renaud. He had previously been vice president in charge of service providers, working in Pieter Knook's Network Service Providers and Mobile Devices Division in EMEA.

Ralph Young becomes vice president, Enterprise Sector, West. He previously served as vice president of Enterprise Sales Strategy within the Server Platforms Group, a duty that has now fallen to Simon Witts.

Peter Boit has been promoted to vice president of the Commercial Sector, where he'll oversee sales to vertical industries and report to Elliott. Previously, he was the vice president of the Western Region reporting to Johnson.

Finally, a new position—vice president, Public Sector—has been created to meet the threat of Linux in government sales. This position, which will report to Elliott, has not yet been filled.

Changes Under Andrew Lees

Andrew Lees retains his title as vice president of the U.S. Marketing, Sales, and Partner Group, where he continues to oversee sales to small and mid-size businesses and partners, but several organizational changes have taken place under him:

David Hemler has been promoted to vice president of SMS&P for the Central Region, a new position reporting to Lees. Previously he was general manager of the North Central U.S. sales district.

Robert Deshaies takes the new position of vice president of SMS&P for the Eastern Region, moving over from a director position in the Business Solutions Group. He reports to Lees.

Matt Pease is now vice president of SMS&P in the Western Region, a new position reporting to Lees. Pease was previously general manager of the Northern California sales district.

Bob Clough, formerly vice president of the U.S. Marketing, Sales, and Partner Group, has moved to a general manager position in Kai-Fu Lee's Natural Interactive Services Group, where he will work on technologies such as speech recognition. Clough's former responsibilities have been split among Hemler, Deshaies, and Pease.

Paul Bazley, formerly vice president of the U.S. Enterprise Group, has left the company, and his group, which was in charge of developing enterprise sales strategies, has been disbanded. Bazley's responsibilities have been absorbed by Phil Sorgen, general manager for U.S. Enterprise Sales Operations (reporting to Gerri Elliott) and Jon Roskill, business marketing officer for the U.S. (reporting to Lees).

Margo Day becomes vice president of the U.S. Partner Group, reporting to Lees. Previously she was general manager of that group, and her responsibilities remain essentially the same.

EMEA Changes

Jean-Philippe Courtois gains a new title as senior vice president and chief executive officer of the EMEA Group, but his duties remain the same. The following shifts have happened in Courtois's organization:

Neil Holloway has been promoted to vice president of Sales and Marketing, EMEA, taking the place of Simon Witts, who has moved to a new vice president position in Eric Rudder's Server and Tools Division. In addition, Holloway continues to run the U.K. sales subsidiary.

Pete Hayes has a new job as vice president of Public Sector for EMEA, reporting to Holloway. He moves up from a general manager position overseeing government sales under Gerri Elliott.

Patrick de Smedt has been promoted to chairman, EMEA, where he will be responsible for engaging supranational organizations and governments, such as the European Union.

Jens Moberg takes de Smedt's former position as vice president of the Central and Southern European sales regions. Previously he was vice president of the Northern European region.

Klaus Anderson has been promoted to take Moberg's place, overseeing sales to Scandinavia, Finland, and Ireland; he also remains acting general manager for sales in Denmark.

Laurent Delaport has moved up to vice president of Small and Mid-Market Sales and Partners for EMEA; previously he was a general manager with approximately the same responsibilities.

Human Resources, Legal Hires from IBM

Finally, two new hires come to Microsoft's Human Resources and Legal Departments from positions at IBM:

Tanya Clemons has been hired as vice president of People and Organizational Capability, a new position where she will oversee "strategies for management and leadership development and organizational design." She will report to Human Resources Vice President Ken DiPietro. Prior to her hire, Clemons was a vice president at IBM, where she was responsible for developing the company's senior leadership. She has also worked at Georgia-Pacific and Anheuser-Busch.

Marshall Phelps is the new deputy general counsel for Intellectual Property Issues, where he will be responsible for supervising groups responsible for Microsoft's 11,000-plus trademarks, its more than 3,000 U.S.-issued patents, and its trade secrets and copyrights. He will also help lead Microsoft's work with other technology companies to promote awareness of intellectual property issues. Phelps was vice president for Intellectual Property at IBM and worked there for 28 years.