The Microsoft CEO, Mr. Nadella, has unveiled a restructure at Microsoft. The company is now abandoning the Windows and Devices Group to expand leverage for its Azure cloud service and subscription software. Consequently, the Windows and Devices Group’s executive vice president, Mr. Myerson, retired from his position at Microsoft. The company is also introducing two new engineering units as it restructures.

Microsoft originally established the Windows and Devices Group under Mr. Myerson’s leadership in 2015. The company set up that group to bring its software and hardware together more and “propel the Windows ecosystem.”

However, with the exception of the Surface and Xbox, Microsoft’s hardware has had relatively little impact since then. That is especially the case for the Windows Phone devices, which Microsoft is now abandoning.

As such, Mr. Nadella has confirmed Microsoft is dissolving the WDG unit with Mr. Myerson departing the company. Myerson was influential in the launch of Windows 10, which has now almost eclipsed Windows 7 as the foremost desktop platform. Nadella stated:

I want to thank Terry for his leadership on my team and across Microsoft… Terry has been instrumental in helping me arrive at this new organizational structure, and I deeply appreciate his leadership and insight as we’ve worked through the opportunity that lies ahead.

With Nadella dissolving the WDG, the Cloud and Enterprise Group, headed by Mr. Guthrie, will become much more influential in Microsoft software initiatives. Microsoft is now placing greater emphasis is on its fast-growing Azure cloud computing platform. Nadella stated that Mr. Guthrie’s group would, “drive platform coherence and compelling value across all layers of the tech stack.”

Aside from the expansion of the Cloud and Enterprise Group, Microsoft has also established two new groups. One is the Experiences & Devices Group under Mr. Jha, which encompasses Microsoft’s productivity suite and hardware. The other new division is the AI and Ethics in Engineering and Research, which will oversee research for AI systems.

The company’s latest overhaul highlights a new strategy for cloud expansion. As such, Microsoft will certainly expand its cloud apps and services for users to utilize on a wider variety of devices.

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