As reported by GigaOM’s Bard Darrow: “The long rumored Microsoft restructuring is here and, frankly, it’s both bigger and less flashy than I expected, because most of this stuff has leaked already (thanks, AllThingsD). The goal is to get Microsoft thinking and acting like a single company — a mighty tall order for an organization famous for infighting.”
Microsoft feels more like the Federal Government these days than a large enterprise and consumer software company. This sprawling business structure has led to an innovation gap that puts Microsoft in the “me too” area of the market. Azure was a response to cloud innovations from other cloud service providers, and Surface was a response to the iPad. Indeed, Microsoft is in the position of waiting to see something emerge, catch on, and then they jump in. This is a far cry from the Microsoft enterprise of the 1990s.
If Microsoft is to truly fix themselves, it’s going to be a matter of swapping in some new and innovative talent. Considering that they are spending more time in internal political battles versus building good technology, I think it’s going to take more than just a reorg.