BUSINESSWEEK ONLINE : MAY 17, 1999 ISSUE
COVER STORY

Building Microsoft 2.0


Eight new divisions, each having unprecedented autonomy, aim to free Microsoft from its bureaucratic morass

BUSINESS PRODUCTIVITY GROUP
Headed by: Robert Muglia.
What it does: Develops applications like word processing. Its target: knowledge workers.
What's new: The unit took over responsibility for the company's Windows CE operating system for handheld computers.

BUSINESS & ENTERPRISE DIVISION
Headed by: Brian Valentine.
What it does: Aims to bring Windows 2000 to corporate customers.
What's new: The spin-off of consumer Windows efforts into a separate group lets this organization focus on businesses.

HOME & RETAIL DIVISION
Headed by: Robbie Bach.
What it does: Handles games, home applications, children's software, and peripherals.
What's new: These products are no longer afterthoughts. It's a self-contained development group with its own sales staff.

DEVELOPER GROUP
Headed by: Paul Maritz.
What it does: Creates development tools that are used by corporate programmers.
What's new: It's a step down for Maritz, who formerly ran all of software development. But also signals the importance of tools for corporate computing.

CONSUMER & COMMERCE GROUP
Headed by: Brad Chase and Jon DeVaan.
What it does: Links merchants and customers via the com
pany's MSN Web portal.
What's new: This is a recast of Microsoft's Interactive Media Group, which lags AOL.

CONSUMER WINDOWS DIVISION
Headed by: David Cole.
What it does: Makes the PC easier to use for consumers.
What's new: Working on a new version of Windows that will combine the stability of Windows 2000 with new ease-of-use features for computing novices.

SALES & SUPPORT GROUP
Headed by: Jeffery Raikes.
What it does: Focuses on customer segments like corporate
accounts, Internet service providers, and small business.
What's new: John Connors replaces Deborah Willingham, who headed corporate sales.

MICROSOFT RESEARCH DIVISION
Headed by: Nathan Myhrvold.
What it does: Conducts basic research on everything from speech recognition to advanced networking.
What's new: Myhrvold is no longer a part of the company's executive group--a loss of power.



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BACK TO TOP


Remaking Microsoft

COVER IMAGE: Remaking Microsoft

TABLE: Building Microsoft 2.0

``I'm Trying to Let Other People Dive in before I Do''

RESUME: Steven Anthony Ballmer

The Five Facets of Bill Gates's Tech Vision

Q&A with the Visionary-In-Chief

ONLINE ORIGINAL: Why Microsoft Shareholders Should Cheer the AT&T Deal



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