Microsoft reorgs to face competitors

Microsoft has announced a sweeping reorganization, designed, according to the company, "to drive greater agility in the execution of its software and services strategy." The reorg creates three new divisions, each with its own president. While that could help the company compete more effectively by, for example, letting one division focus solely on consumer-based products, while another concentrates on enterprise solutions, the lines aren't drawn as clearly as they might be. The Platform Products & Services Division, which handles client and server tools, will also manage MSN, no doubt since MSN is server-based. However, given that most consumers who use MSN couldn't care less what technology it's based on, it would seem to make more sense to put the service under the Entertainment & Devices Division. The only one of the three new divisions that seems to be clearly defined is the Microsoft Business Division, which will focus on the needs of corporate customers. One interesting piece of the reorg puzzle is that it marks another bump up the ladder for Ray Ozzie (pictured), the Lotus Notes creator who Microsoft named a CTO after acquiring his Groove Networks earlier this year. Ozzie, who reports directly to Chairman Bill Gates (rather than to CEO Steve Ballmer), will now be "assuming responsibility for helping drive ... software-based services strategy and execution across all three divisions." Could Ozzie be next in line for the top spot — despite the fact that Ballmer has said he has no plans to retire for another 12 years?