Ballmer on MSFT: Planning Major Restructuring Of Company

On Tuesday, major news reports are coming out reporting that Microsoft and Steve Ballmer are seriously considering a major restructuring of its company to divide it into its core businesses.

Microsoft will give more focus to devices and services over other divisions of the company.

News reports late Tuesday were reporting that Steve Ballmer is majorly considering the restructuring Microsoft into separate companies and divisions. With this, the different companies and reducing the number of companies into four main divisions within the Microsoft company logo.

Microsoft and Steve Ballmer Considering Major Corporate Restructuring

Four Divisions One Goal

The divisions are reported are still being discussed with the Microsoft board, and are to be broken down into the Enterprise, a hardware unit, an applications and services division, and finally a operating systems group. With these divisions, Microsoft can focus on its core businesses are grow those that are struggling.

Enterprise and Applications & Services Leading the Charge

The quarterly and yearly earnings reports of Microsoft constantly point to the major two divisions that would comprise of the Enterprise and applications & services divisions being the ones with the greatest profits and growth. As Microsoft continues to establish its services divisions like Azure and others, it will continue to grow with the Enterprise level customers.

Hardware Systems and Operating Systems Groups Needing Help

Within Microsoft though, the hardware systems that make the Xbox, Windows Phone, and Surface units lag at the retail channels and need help. The OS Group led by the release of Windows 8 and the upcoming Windows 8.1 RT will only need additional leadership to help gain the interest of enterprise level customers in the future. The enterprise and business customers continue to see Microsoft’s products as the necessities for its core business needs, but are looking outside of Microsoft to other cloud and OS level products.

Whether this is enough to save Microsoft, Steve Ballmer, and the flourishing stock price of MSFT, that remains to be seen. It has been long discussed within the tech circles as something that Microsoft needs to do, and finally Microsoft is seeing this as something that it needs to do to survive in the changing business and technology ecosystem. Microsoft cannot let companies like Salesforce, Google, Oracle, and others to take away their Enterprise customers anymore and will need to capture them back.

Published: Thursday, June 6th, 2013 Last Modified: October 23, 2013

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