Updated: July 12, 2020 (April 9, 2001)

  Analyst Report

Organization Changes Help Transition to Software Services

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961 wordsTime to read: 5 min

Microsoft is tightening its focus on the consumer market and reorganizing its personnel to help it transition from a packaged software to a software services company. The company also plans to deal more directly with consumers when selling these new services, rather than working through resellers.

To guide the transition, Microsoft CEO Steve Ballmer has identified three core priorities:

  • Developing subscription-based services, including a new consumer service called Personal.NET
  • Building and promoting Microsoft’s Web services development platform.
  • Making Windows into a platform for the seamless integration of applications and services

Subscription-Based Services

MSN, which is mostly free today, will begin to offer premium, fee-based services to consumers. MSN Vice President Yusuf Mehdi will assume most of the current duties of MSN Senior Vice President Brad Chase, including overseeing worldwide marketing and business development, and will report directly to COO and President Rick Belluzzo. It is not clear what new role Chase will play.

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