As Win­dows 10 launches, Stephen Elop leaves Mi­crosoft

Tech Advisor - - NEWS -

All change at Red­mond as for­mer Nokia CEO leaves tech gi­ant for pas­tures new

Mi­crosoft has shuf­fled its ex­ec­u­tive ranks, giv­ing Win­dows chief Terry My­er­son more re­spon­si­bil­i­ties and cast­ing out for­mer Nokia CEO Stephen Elop (pic­tured). It’s been cal­cu­lated that Mi­crosoft’s 14-month ‘rent’ of for­mer Nokia CEO Stephen Elop cost the firm at least $18 mil­lion, or about $1.3 mil­lion each month.

The Red­mond firm also re­duced the num­ber of ma­jor en­gi­neer­ing di­vi­sions from four to three. Two of these ex­isted prior: Cloud and En­ter­prise (C&E), led by 18-year vet­eran Scott Guthrie, and Ap­pli­ca­tions and Ser­vices (ASG), headed by Qi Lu. Guthrie’s group is get­ting Dy­nam­ics, Mi­crosoft’s Cus­tomer Re­la­tion­ship Man­age­ment (CRM) and En­ter­prise Re­source Plan­ning (ERP) soft­ware, which pre­vi­ously was in its own di­vi­sion.

Terry My­er­son, who pre­vi­ously di­rected the Op­er­at­ing Sys­tem group, will con­tinue to do that, while also pick­ing up the De­vices team, which Elop had run since his re­turn to Mi­crosoft af­ter the $7.9 bil­lion Nokia ac­qui­si­tion fi­nalised last year. My­er­son’s new group, a mash of his OS team and Elop’s De­vices di­vi­sion, will be called Win­dows and De­vices Group, or WDG for short.

The cre­ation of My­er­son’s WDG was a re­turn to how Mi­crosoft or­gan­ised its en­gi­neer­ing ef­forts im­me­di­ately af­ter the mid-2012 launch of its Sur­face and Sur­face Pro tablets, the com­pany’s first-ever per­sonal com­puter. Then, Julie Lar­son-Green, who was later shunted to a dif­fer­ent role af­ter Elop came aboard, ran the en­gi­neer­ing of Mi­crosoft’s OSes and its hard­ware.

“That’s a mas­sive group,” said Pa­trick Moor­head, prin­ci­pal an­a­lyst at Moor In­sights and Strat­egy, in an in­ter­view to­day. “I think it might al­most be too big to man­age.”

But Rob Helm, an an­a­lyst at Di­rec­tions on Mi­crosoft, saw it dif­fer­ently. “I think this un­der­lines the fact that Mi­crosoft’s hard­ware busi­ness is go­ing to be the first and best cus­tomer of Win­dows,” he ar­gued.

Moor­head viewed the re­arrange­ment of ex­ec­u­tives’ chairs as a con­tin­u­a­tion of the mas­sive re­or­gan­i­sa­tion that Ballmer in­sti­tuted in July 2013. The then-CEO called

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