Microsoft's new commitment to being a "device and services company" – as noted by CEO Steve Ballmer in his annual shareholder letter last October – could be what just what the company needs to right this heavy, crowded ship.
But that level of reorganizing invariably will lead to a shakeup at the executive level. And maybe it started this weekend with the announcement that CIO Tony Scott will be leaving Microsoft to "focus on personal projects."
On the other hand, the "restructuring" could lead to expanded roles for other execs, including Satya Nadella, president of its Servers and Tools division; Tony Bates, president of its Skype communications division; and Don Mattrick, president of its Interactive Entertainment division.
Sources close to Microsoft say that a corporate restructuring is high on Ballmer's priority list. As it should be. Calls to streamline Microsoft's convoluted structure have reached a fever pitch. Shareholders have been critical of Microsoft's direction. Analysts have recommended selling off the Xbox and Bing businesses. And Ballmer's competency as leader in the age of mobility has been in question for the past few years.
On the heels of Microsoft reorg rumors, the company is also reportedly cutting prices on Windows RT tablets to boost sales of the struggling ARM-based version of Windows 8.
However this device and services reorg plays out, it's clear that Microsoft is starting to do something to simplify, streamline, change the status quo, etc.
Here's what we're hearing from around the Web about Microsoft's mid-year inflection point.
According to sources close to the situation, Microsoft CEO Steve Ballmer is working on what is likely to turn into a significant restructuring of the massive software company, which could also move several current execs to more prominent roles. (AllThingsD)
Microsoft shares this morning rallied after separate reports detailed changes in the tech giant’s strategies, including a possible corporate restructuring and lowered prices on its tablet computers. (Forbes)
It may finally be time for Microsoft to break up, according to one prominent Wall Street analyst. Sure, Microsoft breakup calls are a dime a dozen, but this one might really make the company listen. (CNN Money)
If the latest rumors are any indication, Microsoft will focus on at least three major categories in the coming years: cloud-connected services, online communications, and all things Xbox. (PCWorld)
Microsoft is reportedly cutting the price of its Windows RT software for smaller tablets in an effort to boost sales of the failing OS. But will it be enough to push sales? (DailyTech)
Tony Scott, who oversaw Microsoft’s internal IT operations for more than five years as the company’s CIO, has exited the position, based on the word leaking out of the company this weekend. (GeekWire)