Reorganization Consolidates Consumer Web Services

Microsoft has consolidated its Internet portal and subscription service efforts by moving the MSN business unit into the Personal Services Group (PSG). The move indicates that MSN is transitioning into a new role as a gateway to the subscription services being created by the PSG. As part of the same reorganization, the teams responsible for mobile and wireless products will move out of the PSG and begin reporting directly to CEO Steve Ballmer. Finally, former PSG leader Bob Muglia is taking on a new role overseeing the company’s strategy for storage data management in the enterprise. (For a graphical overview of the changes, see “Personal Services Reorganization, Winter 2001“.)

MSN Brought into PSG

The reorganization brings Yusuf Mehdi’s MSN Division (responsible for MSN sales, marketing, business development, and network programming) out of President Rick Belluzzo’s organization and into the PSG. Although the PSG is being renamed the “MSN and Personal Services Group,” it will be led by PSG veteran David Cole, and its charter will remain the same as that of the PSG: to create and market a set of compelling, fee-based services that compete effectively against AOL. Mehdi will now report to Cole.