Microsoft Moves Muglia to Server Division

Microsoft Corp. is moving its top Internet and wireless executive to its server software group, leaving the mobility group directly in the hands of CEO Steve Ballmer.

Bob Muglia, who had been group vice president in charge of Internet ventures including .Net, will become senior vice president for the server division, said officials at the Redmond, Wash., company, who insist the move is lateral and not downward.

“A group vice president is in charge of a number of different product groups,” said Microsoft spokesman Jim Bak. “Now that his focus is one specific area, his title needs to reflect that. Its not a demotion, per se.”

David Cole, a senior vice president who reported to Muglia, will take on Muglias former MSN (Microsoft Network) and .Net Internet service responsibilities.

As for the mobile and wireless division, Ballmer will now oversee it directly.

“The company is just putting a greater emphasis on that aspect of the business,” Bak said. “Mobility is such a great part of .Net.”

The Mobility Group has been somewhat of a sore spot for Microsoft, which has faced more product delays and botched initiatives than many of the companys other division. When Senior Vice President of the Mobility Group Paul Gross left the company in June, he was never replaced.