MICROSOFT'S REORG... JIM ALLCHIN RETIRING AFTER VISTA LAUNCH

CNet has a good overview of articles on Microsoft's recent moves to make itself more nimble in its battle against Google and others. Here's one of them on their move to focus on hosted services:

Microsoft's just-announced reorganization gives hosted-software services a starring role, providing a clear picture of the company's plan to stimulate revenue growth.

In an effort to speed up decision making, Microsoft said Tuesday, the company will restructure into three divisions led by individual presidents. Significantly, the reorganization signals an accelerated commitment to hosted-software services.

In a memo to employees, company CEO Steve Ballmer said the goal of the changes is to "achieve greater agility in managing the incredible growth ahead and executing our software-based services strategy."

To make hosted services a more central part of the company, Microsoft has folded its MSN Web portal business into its platform product development group. Ballmer has also tasked Chief Technology Officer Ray Ozzie with expanding software services throughout the company.

Microsoft's decision to combine MSN with its platform products group is "a Google reaction," said Frank Gillett, an analyst at Forrester Research. "Microsoft is certainly alerted to the impact Google is having on what Microsoft thinks is their domain." (full article)