• Illustration: Platform Software and Services Reorganization

The effects of Microsoft's major Oct. 2005 reorganization, in which Kevin Johnson and Jim Allchin were named copresidents of the new Platform Software and Services Division, are beginning to trickle down to lower levels of the company. Additionally, Microsoft has added a new Chief Information Officer to oversee internal systems.

Server and Tools Changes

In Nov. 2005, Microsoft announced the following organizational changes in the Server and Tools Division. (For a graphical overview, see "Platform Software and Services Reorganization".)

Bob Muglia will replace Eric Rudder as senior vice president of the Server and Tools Division, where he will oversee development and marketing for Windows Server, most of Microsoft's server applications, and developer tools. Rudder had already announced plans to move to a new position overseeing the company's broad technical strategy and reporting to Chief Software Architect Bill Gates at the end of 2005.

A 17-year Microsoft veteran, Muglia spent the last two years leading the Windows Server business, and immediately prior to that he oversaw Microsoft's enterprise storage and management products. From 2000 to 2001 Muglia led the Personal Services Division, which was responsible for creating hosted services for consumers and small businesses—an effort that never got off the ground but is being revisited now in the form of Office Live and Windows Live, with an emphasis on free services supported by advertising rather than subscriptions. (For background on that initiative, see "Services Emerge Under 'Live' Brand".)

Muglia will report to Allchin until Allchin's retirement at the end of 2006, after which he will presumably report to Kevin Johnson. A replacement has not been named to lead the Windows Server Division.

Simon Witts, vice president of the Enterprise and Partners Group (EPG, also sometimes called the Enterprise Platforms Group), now reports to Chief Operating Officer Kevin Turner within Microsoft's sales organization, rather than to the head of the Server and Tools Division. Witts's group is responsible for Microsoft's worldwide relationships with large enterprises.

Sanjay Parthasarathy, vice president of the Developer and Platform Evangelism team, will now report directly to Kevin Johnson. He previously reported to Rudder.

NISD group disbanded. The Natural Interactive Services Division (NISD), which oversaw speech-recognition products and technologies such as Speech Server, as well as other advanced interactive interfaces, has been disbanded, and its teams now report to various other groups within the company. The group's former leader, Kai-Fu Lee, had reported to Rudder, but left Microsoft for Google in July 2005, sparking a lawsuit in which the judge ordered Google to honor a noncompete agreement Lee signed with Microsoft. (For details on that case, see "Lee Injunction and Other Legal News" on page 37 of the Oct. 2005 Update.) As part of the reorganization, Richard Bray, the general manager of the Emerging Server team, which is responsible for Speech Server, will now report to Exchange Vice President Dave Thompson.

Paul Flessner's title has changed. Formerly the vice president of SQL, Exchange, and E-Business Servers, he is now vice president of the Windows Server System. His duties are not changing for the time being, but his new title suggests he may inherit some of Muglia's former reports.

New CIO

Microsoft has hired a second Chief Information Officer (CIO). Stuart Scott, who has worked for General Electric for 17 years and has been the CIO of several divisions there, will oversee the design, development, and deployment of Microsoft's internal IT systems, and will report to Kevin Turner.

CIO Ron Markezich will retain his current title and add a new one: vice president of managed systems. He will continue to oversee the internal delivery of IT services, including "dogfooding" (in which Microsoft deploys its own software), as well as Microsoft's efforts to develop a managed desktop solution. Markezich has been overseeing Microsoft's deal with Energizer to manage that company's desktop PCs. (For background on that deal, see "Energizer to Use Microsoft IT" on page 31 of the Apr. 2005 Update.)