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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

May 18, 2007 at 8:08 AM

Microsoft reorganizes Server and Tools business

In the midst of the frenzy around Microsoft’s announced $6 billion acquisition of Seattle-based online advertising company aQuantive, there’s another significant piece of news coming out of Redmond.

Microsoft is realigning one of its major business groups. It said today that the Server and Tools business, responsible for some 18 consecutive quarters of double-digit revenue growth, is moving into the Microsoft Business Division headed by Jeff Raikes. The server gang, led by Bob Muglia, had been in the Platforms and Services Division, which is apparently where aQuantive and its 2,600 employees would fit.

“Microsoft senior leadership decided to make these changes to sharpen leadership focus on the company’s top priorities and align its organization for innovation, ultimately enabling it to deliver even more value to its customers,” the compny said in a statement delivered through its PR firm.

Server and tools, which sells its wares mainly to businesses, looks like a good fit with the Business Division.

As part of the reorganization, the developer and platform evangelism team, which tries to get attract more software builders to the Microsoft fold, is moving under Muglia’s server and tools group.

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