What Microsoft's new product groups mean for Windows, Office, and more
Microsoft has recently announced a major reorganization of its product groups, which will affect some of its most popular software and services, such as Windows, Office, and Azure. The company says the changes are intended to align its teams with its vision of creating "the best end-to-end customer experience across all devices." Here's what you need to know about the new product groups and what they mean for the future of Microsoft.
The first new product group is called Windows + Devices and will be led by Panos Panay, who is currently Microsoft's chief product officer and the head of the Surface division. This group will combine Windows and Devices computers, which were previously separate. The goal is to create a more cohesive and consistent experience across all Windows devices, from PCs and laptops to tablets and phones. Panay says he wants to "reignite the passion" for Windows and make it "the most innovative, productive and secure platform for our customers."
The second new product group is called Cloud + AI Platform and will be led by Scott Guthrie, who is currently the executive vice president of the Cloud and AI group. This group will oversee Microsoft's cloud computing and artificial intelligence offerings, such as Azure, Microsoft 365, Dynamics 365, Power Platform, and GitHub. Guthrie says he wants to “accelerate our innovation and growth” in these areas and “deliver the best cloud for every customer.”
The third new product group is called Experiences + Devices and will be led by Rajesh Jha, who is currently the executive vice president of the Experiences and Devices group. This group will focus on Microsoft productivity and communication software and services, such as Office, Outlook, Teams, Skype, OneDrive, SharePoint, Yammer, and LinkedIn. Jha says he wants to “empower every person and organization on the planet to achieve more” with these tools and “create magical experiences” for them.
The fourth group of new products is called AI + Research and will be led by Eric Horvitz, who is currently Microsoft's chief scientific officer and head of Microsoft Research. This group will be responsible for Microsoft's research and development in artificial intelligence, machine learning, natural language processing, computer vision, quantum computing, and more. Horvitz says he wants to “advance the frontiers of AI” and “create new possibilities” for Microsoft customers and society.
These are the four new product groups that Microsoft has created as part of its reorganization. They reflect Microsoft's ambition to be a leader in the world's digital transformation and to deliver solutions that can meet the needs and expectations of its customers in a rapidly changing environment. By bringing its teams together into these groups, Microsoft hopes to foster greater collaboration, innovation, and efficiency across all of its products and services.
Microsoft reorganizes to focus on technologies, not products
Microsoft announced Thursday a major restructuring that will align its various divisions around common technologies, rather than separate products. The goal is to create a more coherent and integrated user experience across its different platforms and services.
What does this mean for consumers? It means we can expect more consistency and compatibility between Windows Phone and Windows 8, as well as other Microsoft offerings such as Xbox, Surface, Office 365, Bing, Skype, Dynamics, Azure, and Microsoft server products. Microsoft CEO Steve Ballmer said in a memo that the company "will view our product line holistically, not as a collection of islands."
Microsoft takes a holistic view
How will this work in practice? According to a strategy document published by Microsoft, the company will be organized into four engineering groups: Operating Systems, Devices and Studios, Applications and Services, and Cloud and Enterprise. Each group will be responsible for delivering technologies that support Microsoft's core vision of empowering people and businesses through devices and services. Ballmer said the company will also streamline its processes and operations to increase collaboration and agility.
Many analysts will try to understand Microsoft's business strategy, but there are two main changes that stand out. First, Microsoft focuses on developing technologies, not products, and its top leaders are all engineers. Second, the devices you use, such as tablets and phones, will only be ways to access the Microsoft software and services you are familiar with. The difference here, however, is that the ecosystem will be more integrated, as demonstrated by products like Xbox One, which will have Skype and Internet Explorer.