Reorganization, Outsourcing at MBS

A June 2004 reorganization has more tightly aligned Microsoft Business Solutions (MBS) development with Microsoft’s sales and partner strategy for small and mid-size businesses. Microsoft has also announced that it will outsource a portion of product development and support for MBS Solomon, one of MBS’s four enterprise resource planning (ERP) product lines. These moves could improve MBS’s financial performance, which is in danger of missing previously stated revenue goals for fiscal year 2004 (which ends June 30).

MBS Reports to Ballmer

Under the reorganization, Microsoft Senior Vice President and former Great Plains CEO Doug Burgum, who oversees product planning and development for MBS, will report directly to Microsoft CEO Steve Ballmer. Senior Vice President Orlando Ayala’s Small and Midmarket Services and Partners (SMS&P) group, which is in charge of Microsoft’s sales and marketing strategy for small and mid-size businesses, including relationships with ISVs and channel partners, will report to Burgum. Ayala will also take on a new role as chief operating officer of the MBS group. Previously, both Burgum and Ayala reported to Productivity and Business Services Group Vice President Jeff Raikes.