Microsoft gears up for four-way global rejig

Software Vendor moves towards customer-oriented subsidiaries.

Microsoft is poised to announce its long-awaited corporatees. reorganisation, after confirming that separate divisions will be created to target different customer groups.

While the software giant refused to discuss details of the plan, the restructure is understood to divide the vendor into four customer-oriented divisions - a marked deviation from its current structure which is organised on product lines.

Jim Allchin, senior vice president of Microsoft's business and personal systems group, is tipped to head an enterprise unit, with responsibility for the Windows 2000 operating system. Robert Muglia, senior vice president of the applications and tools group, will lead a division focused on taking the Office suite to knowledge workers, while Paul Maritz, group vice president for platforms and applications, will take charge of a software development tools unit.

But uncertainty surrounds the leadership of the fourth, Interactive Media Group division, which includes the Microsoft Network (MSN) of Websites and is tipped to become the consumer division.

According to reports, Brad Silverberg, the senior vice president who has been on leave since 1997, turned down an offer to take the post, so it will be shared between Jon DeVaan, vice president of the desktop applications division, and Brad Chase, vice president for Windows marketing and developer relations.

A representative at Microsoft said: 'What we can say is that Microsoft is planning to make adjustments to its internal structure, but we are not going to speculate on timing or details until Microsoft is ready.'

Meanwhile, the software giant is planning to harmonise its pricing structure across Europe. Microsoft gave UK distributors the option of being billed in euros or sterling last year. Adele Knox-Roberts, UK distribution sales and marketing manager at Microsoft claimed there would be minimal impact for the UK channel. 'Any price changes will be beneficial,' she said.