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Microsoft Corp (NASDAQ:MSFT) Reorganises With Creation Of A 15,000-Staff Digital Transformation Platform Group

Microsoft Corp (NASDAQ:MSFT) institutes organizational changes as it expects to integrate its various cloud offerings as part of digital transformation.

Microsoft announces internal reorganization as part of digital transformation

The company announced the internal reorganization on Executive VP Scott Guthrie’s AI and Cloud side of the house. Interestingly, this reorganization comes from Corporate Strategy Head Kurt DelBene’s retirement, which the company announced at the beginning of this year. Internal restructuring appears to be a way of consolidating most of the disparate “Microsoft Cloud” parts, including IoT, Dynamics ERP/CRM, and its data platform products. It seems that the reorganization announced on March 11 is more of a musical-chairs one instead of a layoff-prep/cost-cutting one.

Notably, at the top level, the company moved different teams under Andrew Wilson and James Philips. For instance, Philips has been heading the Business Applications unit (Dynamics and the Power Platform) but will now be the President of the new Digital Transformation Platform Group. Interestingly, the group is unlike things labeled “digital transformation” at the company because it develops and delivers products. Philips will now oversee 15,000 staff working in Power Platform, Dynamics 365, Azure Data Platform, Azure AI platform, Azures IoT platform, and Microsoft Cloud for industry solutions. His previous business application group had only half the number of employees the new group has, and Philips will continue reporting to the executive VP Guthrie.

Wilson to head Microsoft Digital

On the other hand, Wilson will head Microsoft Digital, having previously worked as the CIO of Accenture and Chief Digital Officer. Early this year, the company announced that Wilson will head Core Services Engineering, Microsoft’s internal It department with almost 170,000 employees. It is important to note that Core Services Engineering works with customers showing off its deployment and operations of cloud services.

Azure’s core infrastructure will continue to be under EVP Jason Zander’s leadership. The Azure Platform as a service tooling will move to the company’s Developer Division under corporate VP Julia Liuson.

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