Terry Myerson - EVP of Microsoft, Is Leaving As The Company Re-organizes

Posted March 30, 2018

Microsoft (NASDAQ:MSFT) announces a major reorganization to focus one division on experiences and devices and another on cloud and AI platforms.

In his e-mail to all MS employees, CEO Satya Nadella said that the changes are meant to help Microsoft focus on "the intelligent cloud and the intelligent edge".

"The objective of this team is to instill a unifying product ethos across our end-user experiences and devices", Nadella said. Meanwhile, the Cloud & AI Platform group was created in 2016 and has been led by Scott Guthrie since then.

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Windows devices chief and longtime Microsoft executive Terry Myerson will leave the company as part of the moves.

The formal relegation of the Windows franchise, said Michael Cusumano, a professor at the Massachusetts Institute of Technology's Sloan School of Management, "has been a long time coming". In the most recent quarter, its Azure business grew 98 percent and its cloud-based Office 365 offering by 41 percent.

A main fixture on Microsoft's executive team is exiting the company. "It will take courage to keep learning and growing together - encouraging one another's individual strengths, building more diversity and inclusion across our teams, and collaborating as One Microsoft".

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What's even more interesting is that Windows and Azure platforms are being merged under Jason Zander, who will be in charge of Roanne Sones, manager for Strategy and Ecosystem for Microsoft. Nadella has selected Rajesh Jha, executive vice president of the Office 365 group, to lead it. Nadella spoke about this vision at Microsoft Ignite in September 2017. And Corporate VP Brad Anderson, whose team joined the Windows organization late past year, will continue to run Windows Enterprise Deployment and Management.

"While there is great opportunity, ensuring we always act responsibly for our customers and partners will continue to be a hallmark of our work", Nadella wrote.

The company's AI + Research division, formed two years ago under the leadership of Harry Shum, remains intact, while the revamped cloud division will have a significant AI component as well. Panos Panay, a VP who has overseen the company's Surface business, will now be the company's chief product officer. He will continue to work on the HoloLens while also leading a new team called AI Perception & Mixed Reality Services, which will be part of Guthrie's organization. Dubbed AI and Ethics in Engineering and Research (AETHER), the project will have the joint aims of preventing Skynet and covering Microsoft's ass from a legal standpoint.

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