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September 20, 2005 11:43 AM PDT

Microsoft to reorg; Allchin to retire

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between the Windows operating system division and the Office division that was a possibility from the federal government's antitrust lawsuit. "I could see where this could make it harder for Windows and Office groups to work together, and they do need to."

But Silver doesn't expect smoother operations out of the plan. "We're skeptical that this will change their execution at this point," he said.

Follow the leader
The promotion of Ozzie, who will report directly to Chairman Bill Gates, underscores just how important services have become to the company. "Microsoft sees software as a service as a part-answer to the maturing software market," said Rob Helm, director of research at Directions on Microsoft.

Ozzie's background means he is suited to the task, said Jamie Friedman, an analyst at Fulcrum Global Partners. "Ray Ozzie is a valuable technology resource, and his role now will be more delineated," Friedman said. "It's a better use of Ray and his skill set and training."

Another significant aspect of the reorg is the promotion of Eric Rudder, who is seen by some observers as a possible future leader of the software giant.

"Microsoft is maturing, and they really need marketing and sales people at the top."
--Rob Helm, director of research, Directions on Microsoft

Rudder will take on a new role, focusing on the company's overall technical strategy. He'll report directly to Gates. Rudder, who heads Microsoft's Server and Tools division, will move into his new post following the shipment of new versions of Microsoft's Visual Studio development tools and SQL Server database later this year.

One potential downside to the reorg is that morale among Microsoft's rank-and-file could be adversely affected, since Allchin and Rudder, two of the company's top technical experts, will depart key leadership positions, analyst Helm said.

"Microsoft is maturing, and they really need marketing and sales people at the top, but I am not sure employees want to hear (that)," Helm said. Johnson, heir to Allchin's throne as Windows chief, is not a geek, but has a sales background.

With the realignment, the new Platform Products and Services division, which includes Windows, will cover roughly 60 percent of Microsoft's revenue.

The Business division is expected to be the source of roughly 28 percent of the company's revenue, while the Entertainment and Devices Division will make up roughly 10 percent of the company's business.

Shares of Microsoft were virtually flat at $25.86 a share in later afternoon trading on Tuesday.

CNET News.com's Joris Evers and Dawn Kawamoto contributed to this report.

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Add a Comment (Log in or register) Showing 1 of 2 pages (54 Comments)
Not retiring at all...
by powerclam September 20, 2005 1:10 PM PDT
From article:
"Kevin Johnson and Jim Allchin will be co-presidents of the Platform Products and Services division[http://...|http://...]"

Doesn't sound like retirement to me...
Reply to this comment
They're making their shareholders happier
by David Dudley September 20, 2005 2:06 PM PDT
When you read through the PR verbage, what you really come away with is that Allchin couldn't deliver Longhorn in a timely manner, so he now has a shadow who is coming up to speed on all of Allchins responsibilities before he gets the boot (more commonly referred to as "spending more time with the family").

It was a good step to make the shareholders happy by showing that they are taking action to correct issues. But, this does not mean that Longhorn will ship out any sooner or with any near the feature set they had initially promised.
Future retirement...
by September 21, 2005 9:21 AM PDT
The release from MS states Allchin will retire
upon release of Vista... For now, he's a
"co-president".
Read further...
by zaznet September 22, 2005 2:46 AM PDT
You didn't read the entire paragraph.
Not retiring at all...
by powerclam September 20, 2005 1:10 PM PDT
From article:
"Kevin Johnson and Jim Allchin will be co-presidents of the Platform Products and Services division[http://...|http://...]"

Doesn't sound like retirement to me...
Reply to this comment
They're making their shareholders happier
by David Dudley September 20, 2005 2:06 PM PDT
When you read through the PR verbage, what you really come away with is that Allchin couldn't deliver Longhorn in a timely manner, so he now has a shadow who is coming up to speed on all of Allchins responsibilities before he gets the boot (more commonly referred to as "spending more time with the family").

It was a good step to make the shareholders happy by showing that they are taking action to correct issues. But, this does not mean that Longhorn will ship out any sooner or with any near the feature set they had initially promised.
Future retirement...
by September 21, 2005 9:21 AM PDT
The release from MS states Allchin will retire
upon release of Vista... For now, he's a
"co-president".
Read further...
by zaznet September 22, 2005 2:46 AM PDT
You didn't read the entire paragraph.
ENOUGH ALREADY! CNET=VISTA PR SITE!
by Llib Setag September 20, 2005 1:23 PM PDT
STOP this endless barrage of upcomming, currently vaporware
Longhorn / AstalaVista PR Web Site news!
Endless barrage of multiple stories that have already been hashed
around before about every tiny bit of news from Jurrassic Park
Redmond Campus One.

GO TO www.microsoft.com for further info & bypass C/NOT all
together.
How much money does Citizen Gates pay you per word anyway?
Reply to this comment
oh, please
by TV James September 20, 2005 3:25 PM PDT
if anything, cnet has been generally more negative about Microsoft than positive, if you were to compare the number of Microsoft stories to the number of Apple stories, Apple would get more than its fair (5%) share of coverage.

So c|net's gotten a little nicer to Microsoft now that they're mad at Google. They're still definitely no Microsoft PR firm.
Why do you come here?
by Christopher Hall September 21, 2005 11:13 AM PDT
You never seem to have anything positive to contribute. Why even bother coming if everything on the site annoys you? Are you just a glutton for punishment?
They have an e-mail address for complaints
by Lord Kalthorn October 25, 2005 7:06 PM PDT
This is a TalkBack area, it is about the story, not about the site. I'm not even sure what you would rather? Would you prefer a mindlessly Anti-Microsoft Site full of why Microsoft is a big meanie and Google and Linux and Open-Source in general and Apple and RealPlayer are all Angels of Light who dance and frolick in fields of green lush grass and bright blossoming daisies at the end of a Monopolistic tunnel of pain and destruction?
ENOUGH ALREADY! CNET=VISTA PR SITE!
by Llib Setag September 20, 2005 1:23 PM PDT
STOP this endless barrage of upcomming, currently vaporware
Longhorn / AstalaVista PR Web Site news!
Endless barrage of multiple stories that have already been hashed
around before about every tiny bit of news from Jurrassic Park
Redmond Campus One.

GO TO www.microsoft.com for further info & bypass C/NOT all
together.
How much money does Citizen Gates pay you per word anyway?
Reply to this comment
oh, please
by TV James September 20, 2005 3:25 PM PDT
if anything, cnet has been generally more negative about Microsoft than positive, if you were to compare the number of Microsoft stories to the number of Apple stories, Apple would get more than its fair (5%) share of coverage.

So c|net's gotten a little nicer to Microsoft now that they're mad at Google. They're still definitely no Microsoft PR firm.
Why do you come here?
by Christopher Hall September 21, 2005 11:13 AM PDT
You never seem to have anything positive to contribute. Why even bother coming if everything on the site annoys you? Are you just a glutton for punishment?
They have an e-mail address for complaints
by Lord Kalthorn October 25, 2005 7:06 PM PDT
This is a TalkBack area, it is about the story, not about the site. I'm not even sure what you would rather? Would you prefer a mindlessly Anti-Microsoft Site full of why Microsoft is a big meanie and Google and Linux and Open-Source in general and Apple and RealPlayer are all Angels of Light who dance and frolick in fields of green lush grass and bright blossoming daisies at the end of a Monopolistic tunnel of pain and destruction?
It's more like...
by September 20, 2005 1:34 PM PDT
Division of OurOSorNoOS, Division of Office NoCompetitionAllowed, and Division of BrowserStandardsAreForP***ies. lol
Reply to this comment
It's more like...
by September 20, 2005 1:34 PM PDT
Division of OurOSorNoOS, Division of Office NoCompetitionAllowed, and Division of BrowserStandardsAreForP***ies. lol
Reply to this comment
Heads are gonna Roll, the ship is unstable, Good News
by September 20, 2005 3:09 PM PDT
Well for once they might actually be doing something to produce
positive results. Shortening the line between the customer and
the honchos at the top would be a good start, too bad they didnt
try this sooner. Keeping Jim Allchin til Vista is a sendoff that
should happen much sooner however.

This guy doesnt know his customer, or his product; when I read
his numerous interviews in eWeek and InfoWorld, he says
nothing that indicates he is even in the software business, he
sounds mostly political, like a cheap salesman in that regard.

I guess this news is more about the way those at the top of MS
are scrambling to man the ship with a new look, doing anything
they can to make some news, otherwise Google gets all the
attention.

While MS is not in danger of disappearing soon, they have hit
their peak and now must accept that they are old news, and we
customers are tired of the sloppy products we get.
Reply to this comment
Executive Management ARE Salespeople
by David Dudley September 20, 2005 3:35 PM PDT
Generally, the role of any executive is to be a politician and salesperson. How much work do you think they actually do? I would bet most of their time is spent at meetings with either other internal management or conducting/assisting sales for large customers. Munich doesn't want Windows and Office? Steve Ballmer flies out, trying his damndest to convince them to keep on giving them cash (We can't have people drop capitalism for communism, can we? Then others would surely follow suit and then goes our world economy we've fought so hard for). I've always assumed that the CEO of any company is the head salesperson of sorts and his executive underlings are his junior salesperson, doing their masters bidding.

Furthermore, if good old Jimmy Jammmers Allchin is being vague in his interviews, then how is he any different from his boss, Gates? If you read Bill's interviews, he speaks like Yoda about concepts that are supposed to be profound or grand, but really are just a rehashing of the same old same old.
View reply
Heads are gonna Roll, the ship is unstable, Good News
by September 20, 2005 3:09 PM PDT
Well for once they might actually be doing something to produce
positive results. Shortening the line between the customer and
the honchos at the top would be a good start, too bad they didnt
try this sooner. Keeping Jim Allchin til Vista is a sendoff that
should happen much sooner however.

This guy doesnt know his customer, or his product; when I read
his numerous interviews in eWeek and InfoWorld, he says
nothing that indicates he is even in the software business, he
sounds mostly political, like a cheap salesman in that regard.

I guess this news is more about the way those at the top of MS
are scrambling to man the ship with a new look, doing anything
they can to make some news, otherwise Google gets all the
attention.

While MS is not in danger of disappearing soon, they have hit
their peak and now must accept that they are old news, and we
customers are tired of the sloppy products we get.
Reply to this comment
Executive Management ARE Salespeople
by David Dudley September 20, 2005 3:35 PM PDT
Generally, the role of any executive is to be a politician and salesperson. How much work do you think they actually do? I would bet most of their time is spent at meetings with either other internal management or conducting/assisting sales for large customers. Munich doesn't want Windows and Office? Steve Ballmer flies out, trying his damndest to convince them to keep on giving them cash (We can't have people drop capitalism for communism, can we? Then others would surely follow suit and then goes our world economy we've fought so hard for). I've always assumed that the CEO of any company is the head salesperson of sorts and his executive underlings are his junior salesperson, doing their masters bidding.

Furthermore, if good old Jimmy Jammmers Allchin is being vague in his interviews, then how is he any different from his boss, Gates? If you read Bill's interviews, he speaks like Yoda about concepts that are supposed to be profound or grand, but really are just a rehashing of the same old same old.
View reply
"They did what the DOJ couldn't,"
by technewsjunkie September 20, 2005 3:15 PM PDT
Heck if the breakuphad happened they could have been more
efficient years earlier!

Ha!
Reply to this comment
They had this planned long ago
by zaznet September 22, 2005 2:50 AM PDT
Back when the break up was a possibility Microsoft had already planned out this reorg. They instead performed a different reorg in an attempt to prove to the courts that the DoJ's suggestion wouldn't work to best meet the needs of their customers.

It is ironic that they are now going back to those old plans in order to survive in the current market.
"They did what the DOJ couldn't,"
by technewsjunkie September 20, 2005 3:15 PM PDT
Heck if the breakuphad happened they could have been more
efficient years earlier!

Ha!
Reply to this comment
They had this planned long ago
by zaznet September 22, 2005 2:50 AM PDT
Back when the break up was a possibility Microsoft had already planned out this reorg. They instead performed a different reorg in an attempt to prove to the courts that the DoJ's suggestion wouldn't work to best meet the needs of their customers.

It is ironic that they are now going back to those old plans in order to survive in the current market.
Heads are gonna Roll, the ship is unstable, Good News
by September 20, 2005 3:17 PM PDT
Well for once they might actually be doing something to produce
positive results. Shortening the line between the customer and
the honchos at the top would be a good start, too bad they didnt
try this sooner. Keeping Jim Allchin til Vista is a sendoff that
should happen much sooner however.

This guy doesnt know his customer, or his product; when I read
his numerous interviews in eWeek and InfoWorld, he says
nothing that indicates he is even in the software business, he
sounds mostly political, like a cheap salesman in that regard.

I guess this news is more about the way those at the top of MS
are scrambling to man the ship with a new look, doing anything
they can to make some news, otherwise Google gets all the
attention.

While MS is not in danger of disappearing soon, they have hit
their peak and now must accept that they are old news, and we
customers are tired of the sloppy products we get.
Reply to this comment
Heads are gonna Roll, the ship is unstable, Good News
by September 20, 2005 3:17 PM PDT
Well for once they might actually be doing something to produce
positive results. Shortening the line between the customer and
the honchos at the top would be a good start, too bad they didnt
try this sooner. Keeping Jim Allchin til Vista is a sendoff that
should happen much sooner however.

This guy doesnt know his customer, or his product; when I read
his numerous interviews in eWeek and InfoWorld, he says
nothing that indicates he is even in the software business, he
sounds mostly political, like a cheap salesman in that regard.

I guess this news is more about the way those at the top of MS
are scrambling to man the ship with a new look, doing anything
they can to make some news, otherwise Google gets all the
attention.

While MS is not in danger of disappearing soon, they have hit
their peak and now must accept that they are old news, and we
customers are tired of the sloppy products we get.
Reply to this comment
My calendar's out of whack
by TV James September 20, 2005 3:23 PM PDT
Usually, you could tell it was spring if Microsoft was reorganizing. But a reorg in September? This just confuses everything.
Reply to this comment
My calendar's out of whack
by TV James September 20, 2005 3:23 PM PDT
Usually, you could tell it was spring if Microsoft was reorganizing. But a reorg in September? This just confuses everything.
Reply to this comment
Capt. Balmer, the Ship is Sinking
by cjohn17 September 20, 2005 5:16 PM PDT
Their just re-arranging the deck chairs on a sinking ship. With
Balmer at the helm MS is doomed. That man is a fool.
Reply to this comment
Ballmer is not the only one to blame
by David Dudley September 20, 2005 8:12 PM PDT
I wouldn't be so harsh on the man myself, but I would say that ever since he took the helm, their stock has been in a decline and their growth has slowed considerably. Obviously, he is not the only person responsible for this decline as Bill Gates and all the other execs are still there making big decisions, but Ballmer is now the "rodeo clown" who garners most of our attention.

Obviously, the company needs to rethink some of its strategies, for example investing in such expensive things that obviously cannot yield a decent ROI (buying Great Plains for example).

Maybe the weight loss program he went on a few years back zapped some of his brain power. ;)
View all 2 replies
Capt. Balmer, the Ship is Sinking
by cjohn17 September 20, 2005 5:16 PM PDT
Their just re-arranging the deck chairs on a sinking ship. With
Balmer at the helm MS is doomed. That man is a fool.
Reply to this comment
Ballmer is not the only one to blame
by David Dudley September 20, 2005 8:12 PM PDT
I wouldn't be so harsh on the man myself, but I would say that ever since he took the helm, their stock has been in a decline and their growth has slowed considerably. Obviously, he is not the only person responsible for this decline as Bill Gates and all the other execs are still there making big decisions, but Ballmer is now the "rodeo clown" who garners most of our attention.

Obviously, the company needs to rethink some of its strategies, for example investing in such expensive things that obviously cannot yield a decent ROI (buying Great Plains for example).

Maybe the weight loss program he went on a few years back zapped some of his brain power. ;)
View all 2 replies
Here's The Problem!
by open-mind September 20, 2005 8:16 PM PDT
http://www.ntk.net/ballmer/mirrors.html

BALLMER STOPPED DANCIN' !!!

;-)
Reply to this comment
Here's The Problem!
by open-mind September 20, 2005 8:16 PM PDT
http://www.ntk.net/ballmer/mirrors.html

BALLMER STOPPED DANCIN' !!!

;-)
Reply to this comment
Who cares?
by thomcarl September 21, 2005 2:24 AM PDT
As of 2002 i've not used anything made by Microsoft. I feel sorry
for anyone who still has to use it. Most big companies get top
heavy and decline after a number of years, it appears that
Microsoft's time has come.
Reply to this comment
Who cares?
by thomcarl September 21, 2005 2:24 AM PDT
As of 2002 i've not used anything made by Microsoft. I feel sorry
for anyone who still has to use it. Most big companies get top
heavy and decline after a number of years, it appears that
Microsoft's time has come.
Reply to this comment
Showing 1 of 2 pages (54 Comments)

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