Microsoft Realigns Platforms & Services Division for Greater Growth and Agility

REDMOND, Wash. — March 23, 2006 — Microsoft Corp. today announced a broad restructuring of its Platforms & Services Division (PSD) to better align existing Windows® and MSN® assets with Microsoft’s overall Live strategy, and to ensure the company delivers a full range of software-based services to consumers and businesses around the world.

“As we launch new Windows Live™ services and finalize Windows Vista™, we’re looking ahead to how we deliver the best possible experience for customers, now and into the future. Today we are enhancing the leadership team and structure across the division to ensure we have the right organization to support our technology vision,” said Kevin Johnson, co-president of PSD.

Johnson said three goals drove the changes:

  • Advance Microsoft’s software plus services and Live strategy

  • Increase Microsoft’s agility in delivering innovation to customers

  • Target new growth opportunities related to Windows Live services, online advertising and solutions in emerging markets

The new PSD organization will be made up of eight new and existing groups: the Windows and Windows Live Group, led by Steven Sinofsky, senior vice president; the Windows Live Platform Group, led by Blake Irving, corporate vice president; the Online Business Group, led by David Cole, senior vice president; the Market Expansion Group, led by Will Poole, senior vice president; the Core Operating System Division (COSD), led by Brian Valentine, senior vice president; the Windows Client Marketing Group, led by Mike Sievert, corporate vice president; the Developer and Platform Evangelism Group, led by Sanjay Parthasarathy, corporate vice president; and the Server and Tools Business Group, led by Bob Muglia, senior vice president.

As previously announced, Jim Allchin, co-president of PSD, will retire next year. Until then, Allchin and Johnson will continue to manage the division in partnership and Allchin will work closely with Valentine to deliver Windows Vista later this year. Sinofsky assumes responsibility for process and planning of future versions of Windows. Sinofsky is a longtime veteran of Office development, and is credited with leading the design of the shared technologies in Microsoft® Office 95, Microsoft Office 97, and the evolution of Office from suite to system. In addition, the eHome engineering team headed by Joe Belfiore will transition to the Entertainment and Devices Division, led by Robbie Bach, president.

“We will also continue to invest in capabilities to execute on our software plus services vision, including additional resource investments related to Windows Live and the Windows Live Platform,” Johnson added. “Expanding the capabilities of our Windows Live platform, extending our reach and impact with and to advertisers, continuing to enhance our search offering, and building out our operational infrastructure are critical to our long-term success.”

Windows and Windows Live Group

With Sinofsky in charge, the Windows and Windows Live Group will have engineering teams focused on delivering Windows and engineering teams focused on delivering the Windows Live experiences. Sinofsky will work closely with Microsoft CTO Ray Ozzie and Blake Irving to support Microsoft’s services strategy across the division and company.

“Steven’s leadership, management and technical skills are well documented and evident in the kinds of products he ships and the type of work environment he creates,” Ozzie said. “I’m looking forward to working with Steven and his team in delivering software-based services that extend the value of our offerings by providing a more seamless connection between our desktop products and the Web.”

Core Operating System Division (COSD)

Brian Valentine will continue to lead this group, which is focused on building the industry’s leading operating system foundation to power Microsoft’s platform products. Valentine’s mission remains focused on shipping Windows Vista. In addition, Mike Nash will be moving from his job as lead for the Security Technology Unit. Ben Fathi will succeed Nash in leading security efforts in COSD. Following a planned transition period, Nash will take on a new role at Microsoft, yet to be announced.

Windows Live Platform Group

Blake Irving will lead the newly formed Windows Live Platform Group, which unites a number of MSN teams that have been building platform services and capabilities for Microsoft’s online offerings. This group provides the back-end infrastructure services, platform capabilities and global operational support for services being created in Windows Live, Office Live, and other Microsoft and third-party applications that use the Live platform. This includes the advertising and monetization platforms that support all Live service offerings.

Online Business Group

The new Online Business Group includes advertising sales, business development and marketing for Live Platforms, Windows Live and MSN — including, MSNTV and MSN Internet Access. David Cole, senior vice president, will lead this group until his successor is named before his leave of absence at the end of April. Yusuf Mehdi, senior vice president, is taking on a new assignment as chief advertising strategist reporting directly to Johnson. Mehdi will play a key role in shaping Microsoft’s strategy to target the growing online advertising market. Martin Taylor, corporate vice president, will transition from the Server and Tools Business to lead Windows Live and MSN Marketing. Taylor will run product management and marketing for Windows Live services, and the company’s Live Platforms, focusing on developing the brand and bringing new service innovations to customers.

Market Expansion Group

Will Poole will be moving to lead a newly created group focused on emerging markets and new form factors. Establishing a Market Expansion organization with product marketing and research and development responsibilities will bring focus to this key growth area for Microsoft and its potential customers around the world through products such as Windows XP Starter Edition and the recently launched Ultra-Mobile PC devices.

Windows Client Marketing Group

Mike Sievert continues to lead Windows Client Marketing and remains responsible for product management and marketing of the Windows operating system, including Windows Vista.

Server and Tools Business Group

Bob Muglia will continue to lead Microsoft’s rapidly growing Server and Tools business, and remains focused on products and services that empower IT pros and developers.

Developer and Platform Evangelism Group

Sanjay Parthasarathy will continue to lead the developer and platform evangelism efforts for the company as Microsoft further enables developers to build applications combining software and services.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Microsoft, Windows MSN, Windows Live and Windows Vista are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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