Microsoft Shuffles Online Services, Expanded Roles For Key Executives
Microsoft announced the recent promotions of 14 executives, as company matches leadership talent to expanding business priorities…
“Microsoft shook up its executive ranks Thursday, bringing together a triumvirate of managers to take over its troubled online-services operations and shaking up management of Windows Mobile and Vista…”
Seattle — Microsoft Corp. announced a series management shake-up at its loss-making online division on Thursday, thrusting an outsider into a prominent position ahead of a proposed merger with Yahoo Inc.
Microsoft’s adding three names to a growing list of recently departed and departing executives that includes chairman and co-founder Bill Gates, and is setting the stage for new executives to lead Microsoft’s continuing online transformation and possible integration of Yahoo.
“Gates, of course, will remain as chairman and work for the company part time.”
Microsoft is often awash in executive shuffles after the company’s annual review period, but a total of 18 executives have changed their roles this time around, including 14 promotions, three departures, and a temporary shift.
The seven executives promoted to senior vice president are Chris Capossela, Kurt DelBene, Antoine Leblond, Andy Lees, Satya Nadella, S. Somasegar and Bill Veghte. The seven executives promoted to corporate vice president are Walid Abu-Hadba, Brad Brooks, Larry Cohen, Steve Guggenheimer, Scott Guthrie, Roz Ho and Brian Tobey.
“Along with attracting world-class talent from outside the company, one of my top priorities is growing Microsoft’s existing leadership team,” said Steve Ballmer, chief executive officer of Microsoft.
“Each of these executives will play a critical role in leading Microsoft into the future. Today’s promotions are a result of their ability to think strategically on a global scale, the respect they have earned from their peers, customers and partners, and their significant contributions to the company.”
The Redmond-based software giant announced that Steve Berkowitz will step down as senior vice president of the online services group. Berkowitz, a former Ask.com executive, will remain with Microsoft until the end of August 2008, the company said.
Chief among the promotions is probably that of now senior VP Bill Veghte, who previously oversaw the company’s Windows business. Another significant promotion is that of senior VP Satya Nadella, a fast riser in the company who has seen his role and influence grow significantly in the last year and a half.
Brian McAndrews, the former CEO of the aQuantive digital advertising company that Microsoft bought last year, will assume greater responsibilities at the company’s online services unit, taking over much of the duties of division head Steve Berkowitz.
According to the press release, the trio will be tasked with outlining the “business strategy, sales, marketing and engineering efforts for Windows Live, Search and MSN.” That job is currently the responsibility of Steve Berkowitz, senior vice president of Microsoft’s Online Business Group, who announced that he is leaving the company in August 2008.
Berkowitz has headed the Online Business Group since 2006; prior to that, he was head of InterActiveCorp. A Microsoft spokesperson said through e-mail that Berkowitz decided to leave and pursue new opportunities just as the company begins to “re-align the businesses.”
“Veghte, Nadella and McAndrews will continue to report to Kevin Johnson, president of Microsoft’s platforms and services division.”
While Microsoft also promoted two other executives to senior jobs in the division, the reshuffle suggested to some that McAndrews, 47, will likely be in a top leadership position in the combined Microsoft-Yahoo, should the Web pioneer accept Microsoft’s $41.8 billion buyout offer.
“If anyone is going to lead Microsoft out of its problems online, it is going to be McAndrews,” said Matt Rosoff, analyst at independent research firm Directions on Microsoft. “He is the person who has the most experience in advertising and they are going to lean pretty heavily on him.”
There was widespread speculation that the shake-up is preparation for the integration of Yahoo, should Microsoft succeed in acquiring the Silicon Valley icon. “They always talk about the acquisition as a done deal, but the fact is it is not a done deal — and Yahoo’s talks with News Corp. make it a little more uncertain,” noted Greg Sterling, principal analyst with Sterling Market Research. “But notwithstanding that confidence, you cannot reorganize the company before the deal is done.”
Microsoft top management is “playing both sides,” Sterling said. “They are thinking Yahoo is going to be acquired but it also has independent integrity.” Although the moves are “not entirely a statement” that Microsoft’s strategy has not been working, they do “reflect Microsoft’s desire to put more emphasis on search and mobile,” he added.
The other two executives leaving the company are Windows consumer product marketing VP Mike Sievert and mobile communications senior VP Peter Knook.
Sievert is leaving to pursue startup opportunities after a rocky first year for Windows Vista’s reputation in the consumer market and will be replaced by Brad Brooks. Knook, who is jumping ship in the midst of the Mobile World Congress in Barcelona, has been hired by Vodafone as director of Internet services.
Replacing Knook will be newly promoted senior VP Andy Lees, formerly the top marketing exec in Microsoft’s server and tools business. Lees does not have experience in the mobile world, but his experience with developers and enterprise customers should serve Microsoft’s growing mobile business well.
Lees will have a newly promoted report as well, corporate VP Roz Ho, who will run Microsoft’s premium mobile offerings group, including new Microsoft acquisition Danger, which makes the Sidekick mobile device for T-Mobile. Danger CEO Hank Nothaft would not be making the trek to Microsoft after the transition period.
Microsoft made a $44.6 billion unsolicited offer to buy Yahoo Inc., of Sunnyvale, Calif., about two weeks ago. The move was widely seen as an effort by Microsoft to catch up to rival Google Inc., of Mountain View, Calif., in the web advertising market.