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Computerworld - The rumored reorganization of Microsoft, which could be revealed as soon as Thursday, will go unnoticed by customers in the near-term, analysts said today.
"This will take years to work out," said Patrick Moorhead, principal analyst at Moor Insights & Strategy, with a just-as-long timeline before customers see a significant difference. "A company the size of Microsoft is perpetually reorganizing. They're never done."
In fact, changes in how Microsoft groups its product lines may be less important than who runs the revamped groups.
"The impact will be subtle and long term," said Rob Helm of Directions on Microsoft, a research firm that tracks only Microsoft's moves, and is famous for figuring out the Redmond, Wash. company's internal makeup. "It will be more to do with whom than how they're organized."
According to reports by the Wall Street Journal's AllThingsD blog, Bloomberg and others, the imminent reorganization will shuffle products into several new divisions and eliminate the current groups. Some Microsoft observers have pegged the expected restructuring as the largest since a 2005 recast, while Helm, who has been locked onto the company for 14 years, said, "This looks like the biggest change since I've been watching Microsoft."
Julie Larson-Green, for example, who now leads Windows engineering, will reportedly oversee all hardware design and development, including the Xbox and the company's Surface line. A new cloud computing and business products unit will be run by Satya Nadella, now the top executive of Microsoft's Servers and Tools group. Terry Myerson, currently head of the Windows Phone division, will purportedly assume engineering control of all the firm's Windows platforms. And Qi Lu, who leads Online Services -- and is thus in charge of Bing -- may pick up Microsoft Office.
The underlying concept behind the reorganization is to refocus the company along the "devices and services" concept that CEO Steve Ballmer claimed last year was Microsoft's new mantra.
"It's all about synchronizing with the grand strategy that [Ballmer] laid out with 'devices and services,'" said Carolina Milanesi of Gartner. The reorg was inevitable once Ballmer stopped talking about software, historically Microsoft's forte, and began naming hardware and services as the firm's future.
But while investors must certainly monitor the changes -- and the story is inherently interesting to others because Microsoft is, well, Microsoft -- what's in it for customers?
A lot, argued Frank Gillett, an analyst with Forrester Research. "It's of interest because of what it says about which products Microsoft thinks go together, which products you get, for example, on a device," said Gillett. "It seems to imply that they don't expect to make money selling software, although they will include software in their thinking so that, for example, the OS is just one element of their thinking of what devices are."
Gillett cited SkyDrive, Microsoft's online storage and syncing service, as an example. "SkyDrive gets monetized when you buy a device," he said, as it's included with each device purchase. Further revenue -- the "service" portion -- is generated by premium offerings, such as additional storage space.
Originally published on www.computerworld.com. Click here to read the original story.