Belluzzo Leaving Microsoft In Wake Of Restructuring

Microsoft last week said President and COO Rick Belluzzo will step down from his post May 1 and continue to work at the company in a transitional capacity until September.

To improve operational and financial accountability, Microsoft also said it will reorganize into seven divisions: Windows Client, Knowledge Worker, Server and Tools, Business Solutions, CE/Mobility, MSN and Home and Entertainment.

Solution providers said the restructuring signals a return to Microsoft's management roots, with CEO Steve Ballmer and Chairman and Chief Software Architect Bill Gates back in total control. Yet some partners fear that the creation of seven business units could divide the company into fiefdoms.

"Giving business unit managers more responsibility is clearly a positive step," said Michael Cocanower, president of ITSynergy, Phoenix. "The danger in this strategy lies in the potential to create islands within the company. If a business unit manager is responsible for every aspect of his business, then integration with other business units and products can fall to the back burner."

Ballmer and other top Microsoft executives will have to ensure that product integration efforts stay on track under the new structure, Cocanower added.

But other solution providers said the reorganization will improve Microsoft's product design and its ability to differentiate its Windows and .Net initiatives for business users from its consumer efforts. Windows XP Professional, for example, includes business and advanced home-user features, while the company also ships Windows XP Home Edition.

"I'm glad to see the company diversifying its structure. Let's hope we will see the operating system become less burdened by . . . company products that are not needed by many users," said Charles Sterling, a computer consultant in Houston.