Update: Sinneck Out At Microsoft

Sinneck, a huge pickup when Microsoft recruited him from IBM Global Services in January 2002, is departing for personal reasons, a Microsoft executive said.

He is relocating back to the East Coast, said Allison Watson, vice president of worldwide partner sales and marketing at Microsoft.

Stepping into an "expanded role" as vice president of worldwide services will be Rick Devenuti, who had been worldwide CIO for Microsoft and who will now take on both worldwide services, including Microsoft Consulting Services and Premier Support Services, as well as internal IT, Watson said. The change was announced internally Tuesday.

Several solution providers close to Microsoft have said since October that Sinneck was on his way out of the company. Microsoft spokespeople have repeatedly denied that contention.

Sinneck replaced Bob McDowell, who had headed Microsoft Consulting Services. McDowell remains with the company as corporate vice president of business productivity.

Sinneck's arrival at Microsoft sparked worry among many partners because of his 32 years with IBM's gigantic internal consulting arm. He quickly allayed their concerns, and many credited him with greatly easing conflicts between Microsoft's own consultants and third parties. (see story.)

In short, these partners do not view his departure as a positive thing. One said that high-profile hires from other high-tech companies do not fare well at Microsoft. He cited Richard Belluzzo, a top Hewlett Packard executive who joined Microsoft, became president within two years and was gone a year later. More recently, Joe Eschbach, an Adobe Systems executive who was brought aboard in August 2002 to help head Microsoft's Information Worker effort, left this month, just 15 months later.

The change high atop the services organization comes just as Microsoft is preparing a huge revamp of its partner programs.

Microsoft put the best face on the Sinneck-Devenuti transition. "I'm extremely positive," Watson said. "As part of our ability to link customers and partners together, [Devenuti's] going to keep IT. ... I'm glad we have good services leadership."

Devenuti will report to Kevin Johnson, group vice president, worldwide sales, marketing and services. He previously reported to John Connors, Microsoft senior vice president and CFO.

HEATHER CLANCY & PAULA ROONEY contributed to this story.