The Buzz: Will MS Reorg Even Matter?

On Tuesday, Microsoft announced a massive reorganization into three new divisions each headed by its own president. Also announced was the retirement of Windows head Jim Allchin after Windows Vista ships in late 2006. The following is a selection of what analysts and bloggers are saying about the changes.

"If Microsoft's premise is right, the new structure would better facilitate cross-product integration and improve product development. If Microsoft is wrong, the reorganization could slow down work in progress."
- Joe Wilcox, Microsoft Monitor

"There's been a little re-org over at MSFT and it looks like while the seven PL centers still exist, three of them just became a little more important than the others. So now we know the players, but it's time to hear the game plan."
- Michael Gartenberg, Jupiter Research

"When some people turn 30, they assess their life's progress. When Microsoft turns 30, it dramatically restructures itself... The reorganization certainly comes at an ideal time. The company is facing competition on all fronts, and it just so happens that it's celebrating its 30th birthday this week. It's too early for a mid-life crisis, but change is definitely in the air. The question to be answered in the future is: can adding more oversight inject some zest into the company?"
- Technology community Ars Technica

"Overall these changes speak to the why behind Vista's improvement and the direct correction of a major problem in Microsoft that was critical to its future. Don't discount this, these changes are both significant and far reaching."
- Rob Enderle, The Enderle Group

"Our goal in making these changes is to enable Microsoft to achieve greater agility in managing the incredible growth ahead and executing our software-based services strategy."
- Steve Ballmer, CEO of Microsoft

"Thank goodness, I felt like we've at least been thrown a bone. Microsoft certainly needed a reorg - something like a good, vigorous shaking of one of those snow-globes. Now, how it's all going to play remains to be seen. But I hope that as part of the good shaking that some of the cruft breaks off and gets swept out and some of the cream rises to the top."
- Mini-Microsoft, a Web log of an anonymous Microsoft employee

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