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Microsoft reduces Windows role in cloud-focused reorganization



Microsoft
Corp.


MSFT 0.65%

reduces the role of its famous Windows franchise, which promoted its rise to the pinnacle of the PC market in earlier decades, reflecting the massive shift in the US So was computing power harnessed.

The software giant has reorganized its business Thursday morning with its growing Azure cloud computing operations and unwavering office productivity business.

Executive Vice President

Terry Myerson,

If you run the Windows business, the company will leave Microsoft Chief Executive, according to an email

Satya Nadella.

The move aims to focus Microsoft on the largest growth areas for the company. In the last quarter, although the company announced no sales for these companies, it said Azure jumped 98% and Office 365 grew 41

%. Meanwhile, More Personal Computing, which includes Windows, has recently gained 2% to $ 12.17 billion.

"A deep sense of unfulfilled and uncluttered customer needs must drive our innovation," Nadella said in an email sent to employees on Thursday morning. "We must not allow organizational boundaries to hamper innovation for our customers, so culture of growth culture is important."

Microsoft declined to comment on Mr. Nadella's email.

For most of his 43 years, Microsoft and Windows were almost synonymous. Under Mr. Nadella's predecessor

Steve Ballmer,

Products were sometimes stalled or even killed because they did not help expand Windows' markets.

That Mr. Nadella is ready to shift the company's focus away from Windows demonstrates the persistence of the shift from personal computer to mobile devices and the network. It also shows how Mr. Nadella puts his own stamp on the tech giant.

"He is clearly not captivated by history," said Brad Reback, analyst at Stifel Nicolaus & Co.

Mr. Nadella is able to take the step because Microsoft has grown into a leader in cloud computing as CEO over its four-year tenure. His Azure operations are number 2 behind

Amazon.de

in the cloud infrastructure market. And its Office 365 productivity apps and its Dynamics business software services are growing rapidly, multi-billion dollar companies.

"The former Microsoft could not have taken that step," said Mr. Reback. "But the pieces were not there to make the move."

Mr. Myerson, a 21-year-old Microsoft veteran, will leave the company and help transition "in the coming months," Nadella wrote.

Scott Guthrie,

Leading the Azure business will extend its existing role to lead the company's cloud and artificial intelligence business. Rajesh Jha, responsible for the Microsoft Office group, will lead the new Experiences & Devices group.

Write to Jay Greene at Jay.Greene@wsj.com


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