Microsoft Creates New Cloud Division

Microsoft has announced the formation of a new group focusing on cloud computing and moving the lessons learned in the cloud into Microsoft's server products and vice versa.

In a Dec. 8 post on the company's Windows Azure team blog, Microsoft announced "a new organization within the Server & Tools Business (STB) that combines the Windows Azure group with the Windows Server & Solutions group. This new organization is called the Server & Cloud Division."

The post continued, "This is an exciting time for Windows Azure with the recent launch of the Windows Azure platform at Microsoft's Professional Developer Conference (PDC). The new organization presents a great opportunity for us to deliver more value to our customers and signifies that we've moved beyond an advanced development project to an important and growing business for Microsoft.

"This move better aligns our resources with our strategy—creating a single organization focused on delivering solutions for customers that span on-premises data centers and the cloud."

Meanwhile, in a post on its own blog, Microsoft's Windows Server team said:

"SCD will deliver solutions that help our customers realize even greater benefits from Microsoft's investments in on-premises and cloud technologies. And the new division will help strengthen an already solid and extensive partner ecosystem.

"As the only company in the industry that has the leading server platform complemented by a massive investment in online services, we have the unique ability to offer our customers a choice to tap into one or both approaches simultaneously through one consistent platform."

The Windows Server team also laid out the shape of the new SCD operation as follows:

"1.  The Windows Azure Development team will move from under Chief Software Architect Ray Ozzie to the Server & Tools Business, led by Bob Muglia, President [of the] Server and Tools Division. Senior Vice President Amitabh Srivastava will lead the newly formed SCD, reporting to Bob.

2.  The Windows Server and Solutions group, led by Corporate Vice President Bill Laing, will join the Windows Azure team to form the Server & Cloud Division. Bill will report to Amitabh and will continue his role as a key member of the STB leadership team. Bill will partner with Amitabh to continue the bilateral sharing of technology between Windows Server and Windows Azure, which has been a key design goal of Microsoft's software + services strategy.

3.  The Windows Azure Business and Marketing team will continue to be led by Doug Hauger. Doug will join the Server and Tools Marketing Group, led by Corporate Vice President Robert Wahbe, reporting to Corporate Vice President Bob Kelly, who is also responsible for Windows Server, System Center, and Forefront."

With this move, Microsoft continues to hone its software plus services strategy of delivering software for use on premises as well as in the cloud—and everything in between.