Microsoft cloud reorg: what insiders are saying

So far, response has been generally positive among current employees.

“This particular is usually probably one of the most, if not the most, significant reorgs from the company’s history having a fresh EVP [executive vice president] owning multi-billion dollar businesses along with breaking up the largest legacy businesses,” said an employee who’s getting moved into one of the two expanding engineering groups.

“If there’s one thing about Satya, he’s not afraid of creating fundamental, disruptive improvements to support his vision.”

Nadella has been talking about the emergence of a “cloud-first” world since he replaced Steve Ballmer as the head of Microsoft in 2014. This particular reorganization makes Microsoft even more focused on cloud services across the board.

In particular, currently there’s an executive vice president — a top Microsoft leadership position — just for Azure. of which person, Jason Zander, will be reporting to Guthrie, who will be executive vice president for the expanded Cloud along with AI Platform group, a Microsoft spokesperson told CNBC in an email.

Azure is usually second to only Amazon Web Services from the public cloud market. While Amazon had 34 percent of the cloud infrastructure services market from the fourth quarter, Azure had 13 percent, more than Google along with IBM, according to Synergy Research Group.

One person from the Azure organization said they approved of the improvements.

At the same time, one of Microsoft’s most seasoned leaders is usually stepping away.

“I liked Terry a lot,” said an employee who worked in Myerson’s organization. “He was abrasive along with headstrong, which rubbed people the wrong way. however I enjoyed working with him along with definitely disappointed of which he’s leaving.”

Microsoft announced a similarly sweeping sales reorganization last year, bringing in more technical salespeople along with focusing more on getting customers to use cloud services. Today many people inside Microsoft feel those improvements were smart.

however ultimately, both reorganizations bolstering Microsoft’s cloud push. the idea’s not a major change in direction, at least as Garnter analyst Anderson — himself a former Microsoft employee — sees the idea. Windows can currently become a bigger part of the cloud narrative for Microsoft, along with the idea will become more integrated with software in offerings like Microsoft 365.

“I don’t think Steve Ballmer could have maybe made This particular change with the same credibility,” Anderson said. “I think This particular has been Satya’s role to play, along with he’s done the idea well.”

–Todd Haselton contributed to This particular story.

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