Update: Microsoft Confirms Ayala Out As Top Sales Exec

Ayala's departure as the company's sales chief and the reorganization was first reported by CRN. (see link)

The 12-year veteran has been reappointed to lead the company's ambitious plans to sell into the "small and midmarket" customer base, according to a statement issued by the Redmond, Wash., software giant on Wednesday. The company would not specify Ayala's new title but said he will "drive" a major effort to sell to SMB customers and "grow Microsoft's worldwide partner base."

While Microsoft's sales organization has been under scrutiny for poor marketing of .Net and industry retaliation against Licensing 6.0 over the past year, Ayala is not the fall guy and his transition has been under way for almost two years, the Microsoft statement said.

"The move is a result of a longstanding plan between Steve [Ballmer ] and Orlando," according to the statement. "They have been discussing a transition to the new worldwide field sales model and Orlando taking on a new challenge for the last 18 months."

One solution provider, who declined to be named, said the impact on the channel depends on Ayala's successor. While Microsoft has not yet named the new head of worldwide sales, the current vice president of sales for the Americas region, Kevin Johnson, is eyed as a likely candidate.

"Orlando has been a big supporter of the channel, but I don't know what the impact is going to be," said the Microsoft channel partner. "It's not a good thing to lose Orlando, but I hope whoever replaces him is as good. [Kevin] Johnson has been a supporter, too. He's solid and supportive of the channel."