To: Gerald Walls who wrote (40078 ) 3/28/2000 10:11:00 PM From: Captain Jack Respond to of 74651
Mar 28, 2000 (Tech Web - CMP via COMTEX) -- Microsoft, in the midst of an extension in its settlement talks with the U.S. government, is preparing to announce a reorganization of the company. The restructuring that is in the works -- typical of the company's annual org chart tweaking and agenda revision -- will address its latest initiative, Next Generation Windows Services, which is due to be unveiled in May. However, sources said they do not know to what extent -- if at all -- the settlement talks with the U.S. Department of Justice have influenced the pending reorganization. Microsoft (stock: MSFT) executives would not comment on the reorganization. But industry observers and insiders at the Redmond, Wash.,-based company said they expect an announcement from the company very shortly. "The Next Generation Windows Services is a driver for this, but Microsoft reorganizes every year," said one source, noting that company executives will probably downplay the significance. "This is a very pivotal time for Microsoft. Microsoft is dealing with a lot of change, including the antitrust trial and other industry trends such as open source and Linux, the hosting model and markets beyond the PC and server. [Microsoft CEO] Ballmer is pushing through cultural and organizational changes." Ballmer took over as Microsoft chief executive in mid-January, as Bill Gates opted to assume a new role as Microsoft's chief software architect. While the software giant will not officially unveil the Next Generation Windows Services platform until Forum 2000 in May, Microsoft's chief financial officer, John Connors, recently has been offering details about the platform at several investor conferences. Microsoft, for example, is developing a new Internet-based Windows schema that will have a new file system and will make it easy for developers to create modular applications and modular services, Connors said. In addition to the Internet-based, programmable Windows OS, Microsoft also plans to unveil a series of component/services that comprise the Next Generation Windows Services, including billing, publishing, relationship management, directory, communications, personalization and storage services, Connors told attendees of the Piper Jaffrey Investor Conference in Seattle last week. Microsoft's last major reorganization, which was aimed at creating customer-driven business units, was announced on March 29, 1999. Late in 1999, the software giant announced another realignment, and reunited the Consumer Windows and Business Windows development groups under one umbrella Windows Division.