By Matt Rosoff [bio]
Posted: Aug. 21, 2006

The following is an illustration accompanying an article published by Directions on Microsoft, an independent research firm focused exclusively on Microsoft strategy & technology. More samples of our content, as well as a list of upcoming articles and reports are also available.

The five business segments that Microsoft will use for financial reporting in FY'07 map fairly closely to the company's organizational structure. This chart shows selected product group leaders in each of the five business segments. (See the Directions on Microsoft OrgChart for an in-depth view of hundreds of Microsoft executives.)

President Jeff Raikes leads the Business Division and the segment of the same name. This division includes the former Microsoft Business Solutions (MBS) reporting segment, which consists mainly of the Dynamics product line and is led by Doug Burgum. (In Nov. 2005, Burgum announced his plans to resign from this position and move to a new MBS Chairman position, but no replacement has yet been named.) Apart from Dynamics, major products in the Business Division include Office, Exchange (formerly in the Server and Tools Division), Project, SharePoint Server, and Live Communications Server.

President Robbie Bach leads the Entertainment and Devices Division and business segment. This division includes the former Mobile and Embedded reporting segment led by Pieter Knook, which covers Windows Mobile, Windows CE, and "Communications Sector" software sales to cable companies, telephone companies, network service providers, and media companies. Bach's division also includes Xbox and games businesses; home entertainment offerings such as the Media Center PC, the Windows Media platform, and the forthcoming Zune line of digital media players and stores; television platforms; and consumer productivity software (e.g., Mac applications, Money, Works) and peripherals (mice and keyboards).

President Kevin Johnson, who will share his title with Jim Allchin until Allchin retires after Windows Vista ships, oversees Microsoft's three remaining business segments: Server and Tools, Windows Client, and Online Services.

Senior Vice President Bob Muglia leads the Server and Tools Division and segment, which includes Windows Server, SQL Server, the System Center line of management servers (e.g., Systems Management Server, Microsoft Operations Manager), security products (e.g., ForeFront, Internet Security and Acceleration Server), and developer tools and languages.

Unlike Microsoft's other business segments, the Windows Client and Online Services business segments do not have clear leaders. Jon DeVaan and Brian Valentine (who is moving to an as-yet-unannounced position after Vista ships) oversee core Windows development including the kernel and networking systems. Steven Sinofsky oversees development for Windows Client OS components, client software that will link to Windows Live services, and search initiatives, including Windows Live Search. Most Windows Live services other than Search, such as Messenger, Mail, and Spaces, are being overseen by Blake Irving. Online advertising sales and remaining MSN-branded businesses (e.g., MSN.com and content sites, MSN Internet Access) are led by Steve Berkowitz. Further organizational changes could bring the Client and Online Services divisions closer in line with Microsoft's financial reporting structure.