A New Microsoft: Major Reorganization Puts Focus On Hardware, Services

Source: Hayley Tsukayama / The Washington Post

Microsoft is moving into a new era, announcing Thursday that it’s reorganizing the company to focus on two major areas: devices and services.

In a sweeping memo to all employees posted to the company’s Web site, Microsoft chief executive Steve Ballmer outlined a “far-reaching realignment” that he said will help the company keep pace with a “fast changing world” and pulls Microsoft from a collection of siloed divisions into a more cohesive company.

It’s no secret that Microsoft is in a period of transition, brought on by challenges such as slumping PC sales — Gartner reported Wednesday that sales in the sector had slipped 11 percent from the last quarter. To combat that slide and push back against competitors such as Apple and Google, Microsoft has launched several new initiatives, including a move into hardware with its Windows Surface tablets. The company has also been putting more energy in promoting its software — particularly cloud-based software — as an ecosystem of products that also works with other company’s services, smartphones and tablets.

Continuing down that track, Ballmer said, requires a bigger shift at the top.

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