Microsoft Forms New Connected Systems Division

Microsoft is counting on the CSD, part of the Server and Tools business unit, to unify Microsoft's business-process integration and distributed systems products.

Microsoft Corp. quietly has formed a new Server and Tools subunit, known as the Connected Systems Division, designed to bring together a variety of Microsoft Web services, identity management and other middleware products under common management.

Microsoft officials briefed industry analysts on the creation of CSD late last week.

CSD will unify Microsofts DSG (Distributed Systems Group) and the BPID (Business Process/Integration Division). The DSG oversees the Windows Communication Foundation (code-named "Indigo"), WSE (Web Services Enhancements), InfoCard, MSMQ, Active Directory and MIIS (Microsoft Identity Integration Server). BPID includes BizTalk Server, Host Integration Server, Commerce Server, RFID, Industry Standard Accelerators and Windows Workflow Services (code-named "Windows OE").

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"This move formalizes the already close working relationship of the two organizations and increases the ability of product groups to work even more collaboratively on product planning," the company said in a statement.

Peter OKelly, a senior analyst with The Burton Group, said he considered Microsofts consolidation into a single Connected Systems unit "a very sensible move, [and] one that will help to align Microsoft product plans in increasingly converged product domains.

"Microsoft has, historically, had some challenges selling BizTalk and Host Integration Server, for instance, as they are relatively specialized offerings that dont have the market momentum of Windows Server System products such as SQL Server, Exchange, and SharePoint," OKelly added. "By aligning the products around Windows Communication Foundation [formerly Indigo], however, Microsoft should be able to more clearly articulate the value of the full Connected Systems Division product family."

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