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Microsoft Plans Executive Changes

Fully aware that it's being left behind by Apple and Google, Microsoft is reportedly planning additional senior management changes to bring in more engineering talent. "The move would expand on an effort to promote managers who have engineering skills and experience executing product plans," reports Bloomberg Businessweek. "The overhaul also may quell criticism from the board and investors that Microsoft is falling behind in some markets." "Microsoft needs engineering expertise to run product divisions that are taking on rivals Apple and Google in web services, smartphones and tablet computers," writes VentureBeat.

In all, four top executives have left the company since May. Just last month, Microsoft CEO Steve Ballmer pushed out server division president and company vet Bob Muglia, with the explanation that the company needed new leadership that could capitalize on emerging fields like cloud software.

Meanwhile, Stephen Elop, who stepped down as the head of Microsoft's business unit in September, was replaced by engineering chief Kurt DelBene, rather than marketing executive Chris Capossela. "You see the engineering team ascending because Steve is realizing that there is a need to execute on a vision -- and in order to do that you have to actually understand how software is built," Wes Miller, an analyst at research firm Directions tells Bloomberg.

However, "If this comes to pass, it won't be business as usual at Microsoft," explains ZDNet's All About Microsoft columnist Mary-Jo Foley. "Since Microsoft Chairman Bill Gates retired from his day-to-day duties at the company, many engineering-focused Microsoft managers ... have left the company, as the more management/sales-focused cadre of "Steve's guys" have risen to prominence."

Business as usual is exactly what Microsoft doesn't need as investors are increasingly concerned that the company is falling too far behind in tablet computers and mobile phones -- devices that are sure to start replacing Microsoft-powered personal-computers. Notes The Register: "Ballmer's mantra has long been 'developers, developers, developers,' but he now appears to be acknowledging the importance of the company's software engine room, too."

Read the whole story at Boomberg Businessweek »

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