Microsoft Reorganizes to Fuel Cloud and AI Businesses

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Myerson leaves after 21 years, and nearly three years in what some have called the hardest job at Microsoft - trying to build a device business after the company exited the phone handset business, while charting the future of Windows in a world that is moving away from the client-computing model that it led.

Microsoft is reorganizing into two main divisions, with one focused on experiences and devices and another on cloud and AI platforms, the company announced Thursday. Foley writes that the Experiences & Devices group is headed by Rajesh Jha, who's been in charge of Office since 2006.

The core operating system group will join "cloud and AI" group, which will oversee all the company's software platforms, from the Azure cloud service to its software for the internet of things.

While this happens, Terry Myerson, the VP of Windows will be moving out of Microsoft. Myerson was later made chief of WDG group, which includes Windows, Surface, Xbox, Windows Server and HoloLens.

Myerson Out The reorg also entails a major executive departure.

The above is part of a wider Embracing Intelligent Cloud and Intelligent Edge shake-up announced by Microsoft CEO Satya Nadella on the official Microsoft Blog yesterday. One of my deeply held lessons from my Exchange days was the importance of that feedback loop with customers and fans, and that's why we created the Windows Insider Program so we could build Windows 10 led by your feedback.

With Myerson's departure, Panos Panay will step up to the title of chief product officer. Other engineers will create the user applications - "Windows experiences", in Microsoft terms - that ride on top of the underlying software, in smartphones, tablets, personal computers and game consoles.

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Jason Zander has been promoted to executive vice president, Azure, and will lead this team. In addition, Roanne Sones, general manager of Strategy and Ecosystem for Windows and Devices, will become part of Zander's team.

The latest restructuring comes just nine months after a previous restructuring, that focused more on massive redundancies as Redmond sought to better position its sales, marketing and customer support teams to sell and support cloud apps and services.

Analyst Rob Enderle of the Enderle Group, meanwhile, sees Microsoft's new emphasis on hardware as part of a push to avoid falling behind the competition.

Scott Guthrie will expand his existing responsibilities to lead a new team focused on Cloud + AI Platform.

Nadella shared the news in an email to employees.

Harry Shum will continue to lead Microsoft's third engineering team, which focuses on A.I. and research and was established in 2016, Nadella said.

Enterprise Mobility and Management: Brad Anderson will continue to lead Microsoft's Windows Enterprise deployment and management efforts.