MSFT Restructuring

MSFT is trying to restructure itself yet again. Past efforts have had mixed results and they need to do something soon on order to keep their stock price propped up. Here’s more on the story:

According to numerous sources close to the situation, Microsoft CEO Steve Ballmer is poised to unveil his plan to drastically restructure the tech giant this week. And, while timing might change, sources said that the current plan is to make it public on Thursday.

A number of issues are still up in the air, due to the close-to-the-vest planning by Ballmer over the major reorg — which has caused a not inconsiderable amount of nervousness on the part of top execs at Microsoft.

As has been much reported here and elsewhere, he is expected to organize the Redmond, Wash.-based company around services — or software — and devices, both in the consumer and business sectors. Ballmer had telegraphed this intent in his shareholder letter last fall.

The effort, said many insiders who have talked to Ballmer and others involved, is to create something that is being called “functional coherence” at the company, although it is not among Microsoft’s talking points when the restructuring will be made public. That also includes putting more wood behind fewer efforts and eliminating overlapping functions.

In theory, it also presumably means things going where they belong in the product cycle. In practice, which is a lot messier, that means moving a lot of important people around.