Consulting, Product Support Merge

Microsoft will combine its product support and consulting organizations into a single Worldwide Services organization. The merger gives the rapidly growing Microsoft Consulting Services (MCS) control of a global organization already created for product and customer support, which will improve support for MCS customers and create some overall business efficiencies for Microsoft. In addition, Microsoft will increase revenues by tying ongoing support contracts with consulting engagements, and it will be positioned to roll out subscription-based product and support offerings that cover the full software life cycle, from initial consulting through ongoing support to product upgrades.

Worldwide Services will be headed by Robert McDowell, whose title will remain vice president of worldwide services, but who will add about 9,000 people in Product Support Services (PSS) to the 4,000 staff in MCS. McDowell, an Ernst & Young veteran, joined Microsoft in 1990 to develop its consulting services.