Microsoft on Thursday announced a major reorganization, putting the focus on two divisions. One will focus on experiences and devices, and the other on cloud and artificial intelligence.
Scott Guthrie, head of the cloud and enterprise group, will head the cloud and AI division. Rajesh Jha, head of the product group, will lead the experiences and devices group. And after 21 years, Microsoft Executive Vice President Terry Myerson will leave the company.
This is not Microsoft CEO Satya Nadella’s first reorganization of the company. In 2016, Nadella created the AI and Research Group by combining the existing Microsoft Research group with the Bing and Cortana product groups, along with the teams working on ambient computing, robotics, and the Information Platform Group, which included Bing advertising and natural user interfaces.
In 2017 the company's 10-K filing noted a shift in strategy, calling out “experience,” human behavior and focus on data.
Nadella outlined the changes in a blog post where he explains how computing is more powerful and ubiquitous from the cloud to the edge, artificial intelligence capabilities are rapidly advancing, and physical and virtual worlds are continuing to come converge.
“Today’s announcement enables us to step up to this opportunity and responsibility across all our Solution Areas,” he wrote.
Nadella also thanked Myerson for his contribution to Microsoft and Windows. Myerson spent decades at Microsoft building the Windows team and reviving the Windows Mobile Division.
As part of the reorganization, Jason Zander becomes executive VP of Azure with the Windows platform team joining him. Panos Panay becomes chief product officer and devices leader. Joe Belfiore will remain as Windows experiences leader, Kudo Tsunoda will remain as new experiences and technology leader, and Brad Anderson will continue to lead Windows Enterprise.