Satya Nadella is continuing his rapid reconfiguration of the partly reorganized Microsoft he had handed to him a few months ago, most importantly making Scott Guthrie EVP of Cloud and Enterprise, a role he had been filling on an interim basis. This is a reward for his efforts in getting Microsoft Azure off the ground.

Nadella also announced that Stephen Elop would be assuming the role of EVP of the Microsoft Device group once the merger with Nokia Devices and Services is completed.

With these moves, Nadella has settled the major organizational issues that had been unresolved in the last few months as a result of executive departures in the wake of the long, long CEO search, and Nadella’s efforts to reorganize around a new vision for the company.

Nadella laid out his key vision last week, at the announcement of Office for iPad, saying

Simply put, our vision is to deliver the best cloud-connected experience on every device.

He has a long row to hoe, and the disasters of the past five years — Windows 8, Surface, and the complete miss of mobile — hover over the company like the smoke from a junkyard fire. We’ll see if Nadella can wean the company from its Windows megalomania, and retool the company into a leader in enterprise computing and services, which is what it is best positioned to do.

If he moves forward with a consolidation into the strengths of the firm, there is also the opportunity to spin out or sell off parts of the company that do not match this core vision.

We’ll have to watch Nadella’s  efforts around lower-margin and consumer products. I’ve argued that buying Nokia was Ballmer’s Folly (see Microsoft buys Nokia Devices and Services, Elop is EVP of Devices, where I call buying Nokia Ballmer’s funeral pyre). We’ll see if he agrees, and tried to spin it out. But the merger will have to complete before that can be considered. And of course, there is the option of pushing hard on making Android phones and tablets, which is an angle Nadella might be interested in trying.

Xbox is another oddball product for the company. Nadella also announced that Phil Spencer will lead the Xbox, Xbox Live, Xbox Music and Xbox Video teams, and Microsoft Studios, reporting to Terry Myerson, the EVP of Operating Systems at Microsoft. Consolidating all those teams under Spencer would be a reasonable step to take if Xbox was ever to be spun out.