Sharp restructuring at defeated Microsoft

Just when the Yahoo resistance to Microsoft’s appetite is strenghtened by the agreement with Carl Icahn, such a wide strategic defeat starts biting at Microsoft: now it’s Johnson, and Ballmer will be next.

See our May S&T Bulletin for the Yahoo-Microsoft long battle: 2stnews080521.

WSJ, July 24:

Microsoft’s Online Chief is Departing for Juniper

By ROBERT A. GUTH

The man who led Microsoft Corp.’s bid to buy Yahoo Inc. is departing as the software giant scrambles to re-energize its struggling Internet business.

Kevin Johnson, 47 years old, will take a job as chief executive of Juniper Networks Inc., a Silicon Valley maker of networking hardware, people familiar with the situation said.

Mr. Johnson, as president of Microsoft’s platforms and services division, was in charge of both its online efforts and its flagship Windows operating system. Along with his departure, Microsoft announced a reorganization of the massive business unit.

The changes reflect deep dissatisfaction by Microsoft Chief Executive Steve Ballmer with the performance of Microsoft’s online business. The company over the past decade has invested billions of dollars into online services only to watch Google Inc. and a host of others grab most of the profits.

After 3 years of ineffectual fusion, the large Johnson’s division is split: Windows OS separated from oL services (Microsoft’s Internet search, online advertising and MSN services). Ballmer is directing himself the former, to underline how dramatic is Microsoft’s crisis after the Vista débacle.

FT:

Johnson to leave Microsoft in shake-up
Jul 24 2008 02:27
Microsoft revealed its disarray in the aftermath of its failed bid for Yahoo, announcing a major reorganisation and the unexpected departure of the executive who oversaw its offer Read more »

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Published in: on July 24, 2008 at 9:14 am  Leave a Comment  
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