One was internet products and the other software for platforms and applications. Two shifts came in 1996: the creation of the interactive media division in February and an October split into two groups. Last Februrary, vice presidents were moved around in anticipation of the Windows 98/Internet Explorer integration.
Microsoft reorgs are almost an annual event. "It's a natural evolution for us and one that will make us more nimble," Gates said.
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They said they reorganized so the company could move beyond its goal of putting a Microsoft-driven PC on every desktop. The two execs said that changes won't be noticed by customers right away and that the long-delayed Windows 2000 will not be affected. In addition, the company dissolved its executive committee that it created in December 1996, replacing it with a "business leadership team." The new group is composed of a dozen executives who will spend one day every month with Gates and Ballmer. Outside those five core groups, Microsoft is creating a home and retail products division under Robbie Bach, which will control products like games, keyboards, joysticks, and the Encarta encyclopedia. Meanwhile, Bob Muglia will run the business productivity group and Paul Maritz will head the developer group. Jim Allchin will run two departments, the business and enterprise division and consumer Windows divisions. Instead, that division will be run by Brad Chase and Jon DeVaan, with Moshe Lichtman overseeing its international ventures. Ballmer said that Silverberg had opted instead to stay on as a consultant.
One former vice president, Brad Silverberg, declined a job as head of the consumer and commerce group, which oversees Microsoft's Internet properties. Gates and Ballmer also outlined how their roles will change.
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