Microsoft names presidents to its Microsoft Office Division, Mobile Communications Business and Interactive Entertainment Business. That refreshes the executive lineup after this year's shakeups.
Microsoft has named three new presidents to key divisions within the
company, replacing those departed in a series of executive shakeups earlier
this year. Along with naming those new presidents, Microsoft also took steps to
restructure those divisions.
Within the new paradigm, Kurt DelBene is now president of the Microsoft
Office Division. Andy Lees will remain in the top spot of Mobile Communications
Business, along with Don Mattrick at the head of Microsoft's Interactive
Entertainment Business-formalizing roles originally established back in May.
All three will report directly to Microsoft CEO
Microsoft's mobile and interactive-entertainment projects were previously
grouped under the umbrella of the Entertainment & Devices Division, headed
by Robbie Bach. By splitting responsibilities for mobile and entertainment to
Lees and Mattrick, respectively, Microsoft seems intent on giving those product
lines new focus-an unsurprising move, given how the upcoming Windows Phone 7
and Xbox Kinect are considered vital parts of the company's overall strategy.
"Today's promotions underscore the strength of Microsoft's collective
leadership team and set us up well to execute against a powerful lineup of
products this fall," Ballmer wrote in an Oct. 1 statement. "Not only
is the team ready to capitalize on major momentum with our existing products
like Office, SharePoint and Halo: Reach, but they are simultaneously bringing
entirely new experiences to market with Windows Phone 7 and Kinect for Xbox
DelBene recently headed the Microsoft Business Division's engineering and
development teams, making his ascension a logical move. As president of the
Microsoft Office Division, his primary tasks will involve not only preserving
the momentum behind the recently launched Office 2010, but also increasing
Microsoft's footprint in the cloud with products such as Office Web Apps.
However, not all of Microsoft's enterprise-related groups will report to
him; Kirill Tatarinov will "continue overseeing Microsoft Business
Solutions (MBS) and will report to Steve Ballmer," according to Microsoft.
"MBS develops and markets the line of Microsoft Dynamics products that
manage financial, customer relationship and supply chain management functions
(ERP and CRM) for organizations of all
sizes." Indeed, DelBene's responsibilities seem limited to the Microsoft
Office Division, which hints that Microsoft may be taking a more decentralized
approach to its business initiatives.
Lees will likely have a considerable load on his shoulders as president of
the Mobile Communications Business, as that role involves shepherding Microsoft's
upcoming Windows Phone 7 into the marketplace. Microsoft is betting that the
smartphone platform will help it reverse several quarters' worth of market share
declines in the face of fierce competition from the likes of the Apple iPhone
and Google Android.
Likewise, Mattrick is stepping into his role as president of Interactive
Entertainment Business just as that division prepares to launch the Kinect
hands-free controller for the Xbox 360. Microsoft expects that device to add to
the lifespan of the Xbox 360 platform. According to Microsoft, Mattrick will
also oversee Xbox Live, Zune Music and Video, and Mediaroom, in addition to PC
and mobile interactive entertainment.
Microsoft has undergone a few rounds of executive decimation in 2010. On
Sept. 9, the
company announced that Stephen Elop would step down to take the CEO reins at
. Although Microsoft and Nokia collaborate on some projects, including
the porting of mobile versions of Office onto the latter's smartphones, the two
companies' respective smartphone platforms will go head-to-head this fall.
And in May, Microsoft's
Entertainment and Devices (E&D) Division underwent a massive shakeup
with the company announcing the departures of Bach, the unit's president, and J
Allard, its senior vice president of Design and Development. Bach is slated to
retire by the end of this year. Although Microsoft remained tight-lipped about
the reason behind those departures, it is widely speculated that the company's
struggles in the smartphone arena-including
the ignoble death of its Kin social-networking phones
-was one of the prime
In the wake of those executive departures, Ballmer assumed much tighter
command-and-control over the Business and E&D divisions, appointing
interim executives who reported directly to him. Given his day-to-day role as CEO,
however, it was inevitable that lasting presidents would be appointed sooner
rather than later.