Microsoft joins Office, Server businesses

Microsoft is changing the internal structure of its Windows products, splitting the management and marketing of its server products from the core Windows division. In a document first sent to Microsoft employees today, the company said it is shifting its server and tools business along with its developer support staff to become part of the business unit responsible for business software products including Microsoft Office. That group is led by division president Jeff Raikes.

There was no indication from Microsoft that the move represented a fundamental technological separation between the desktop and server products, which have shared the vast majority of their code since the Win32 and WinNT products were merged at the time of Windows XP's release.

Microsoft said that it is not changing the revenue breakouts of its different product lines, emphasizing that the move was made for reasons of "focus." A side effect of the move is that the core Windows division, which also includes Microsoft's Internet advertising unit, may now have more space available to encompass the recently acquired aQuantive business.