By Matt Rosoff [bio]
Posted: Aug. 4, 2008

The following is an illustration accompanying an article published by Directions on Microsoft, an independent research firm focused exclusively on Microsoft strategy & technology. More samples of our content, as well as a list of upcoming articles and reports are also available.

Management of the consumer Online and Windows desktop segments overlaps in the wake of Kevin Johnson's departure. This illustration shows the five business segments (shaded rectangles) that Microsoft uses for financial reporting, and the executives who will lead those segments in FY'09, which started July 1, 2008. As of July 2008, all of the executives shown on this chart report to CEO Steve Ballmer.

Three of the segments have clear leaders: the Business segment and its product division are led by Steven Elop (who is taking over for Jeff Raikes when he retires in Sept. 2008), the Server and Tools segment and its product division are led by Bob Muglia, and the Entertainment and Devices segment and its product division are led by Robert Bach.

However, Microsoft's other two business segments—Online and Client—overlap somewhat. Specifically, Steven Sinofsky's product group, which oversees development of the Windows client OS and Windows Live consumer online services, and Bill Veghte's product group, which oversees marketing and business development for the Windows client OS and Microsoft's online services, are part of both the Online and Client business segments.

Exclusive to the Online segment are Brian McAndrews's product group, which is in charge of Microsoft's platforms and services for advertisers and online publishers, and Satya Nadella's product group, which oversees Microsoft's search initiatives, MSN, and internal online advertising platforms. McAndrews's and Nadella's groups will be consolidated under a single leader, whom Microsoft has not yet named.

Exclusive to the Client segment is Jon DeVaan's product group, which oversees development of the Windows core OS.

Several other Microsoft executives who spoke at the 2008 FAM wield considerable influence over the company's direction, but are not shown on this chart because they do not lead product development related to a specific business segment. These executives include Chief Operating Officer Kevin Turner, who oversees the company's sales force and operations; Chief Software Architect Ray Ozzie, who oversees companywide technical strategy for the two-to-five year time frame; and Chief Research and Strategy Officer Craig Mundie, who oversees long-term technical research and public policy. All three executives report to Ballmer.