Mobile, Online Reorganized

Shakeups in the product team responsible for mobile device software could help the company take on Symbian and Apple’s iPhone, while a reorganization in online services paves the way for possible integration of Yahoo. Other organizational changes include promotions for several corporate vice presidents and general managers.

This article summarizes organizational changes at the vice-presidential level and above since the end of Jan. 2008.

Mobile Leadership Changes

Several shuffles have been announced in Microsoft’s Mobile Communications Group, including the replacement of its longtime leader, Pieter Knook.

Pieter Knook, senior vice president of Mobile Communications, has left Microsoft for European wireless service provider Vodafone. Knook has led Microsoft’s efforts in the mobile phone space since early 2002, and at one point was the leader of the company’s Mobile and Embedded Devices group, which also included Windows CE and other embedded OSs and was one of Microsoft’s seven business segments for financial reporting. (It was consolidated into the same group as the Xbox and other consumer businesses beginning in June 2007.) Under Knook’s leadership, Microsoft’s platform for smart phones emerged from development into real-world deployments and became the second most popular smart phone OS in the world, with 13% market share in 2007 according to research firm Canalys—well behind Symbian’s 65% share, but ahead of Research In Motion’s 10%. However, Microsoft’s smart phone strategy suffered a significant setback when Apple launched its iPhone in mid-2007. In the fourth quarter of 2007—the most important quarter for consumer sales—Apple captured fourth place among worldwide smart phone OS vendors with 7% market share; in the United States, it achieved 28% market share during that quarter, ahead of the 21% share for all Windows Mobile phones from all vendors.