Restructuring looms large as Microsoft transitions into “Devices and Services”

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The murmurs of an impending Microsoft’s biggest reorganization have only increased in the past couple of days, and All Things D are adding to the conversation with new news about the restructuring. Destined to take effect on July 1st, the reorganization divides the company into four vital and yet distinct businesses that may leave some top-level executives out in the cold.

Apparently being spearheaded by Steve Ballmer with some small influence by other high level employees, Tom Warren reports that the company will be divided into groups consisting of hardware, services and apps, operating systems, and the lucrative enterprise division.

Compared to the current organizational chart, the simpler system echoes the rallying call of Microsoft’s “devices and services” memo. With new product ventures like Surface, combined with a movement of popular software products into the cloud alongside SkyDrive and Outlook, this reorganization embodies a new Microsoft.

One important change is the fact that now Windows Phone and Windows are further aligned under one division, a move that will allow for further unification of two OSes that currently share a user interface in “Metro” and a common Windows kernel. If Microsoft allows for easier development between the two OSes, they have much to gain and could foster the app ecosystems for both systems.

After BUILD this week, we’ll keep reporting on the changes ahead for Microsoft.

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