In a recent letter to all staff, Microsoft chief executive Steve Ballmer outlined a corporate reorganization 

and the strategy behind it, stating the company will now be organized by function rather than product which will include engineering, marketing, business development advanced strategy and research, finance, HR, legal and COO.

According to the letter, essentially all parts of the company will “share and contribute to the success of core offerings” including Windows, Windows Phone, Xbox, Surface, Office 365 and our EA offer, Bing, Skype, Dynamics, Azure and its servers.

Dynamics specifically will still be headed by Kirill Tatarinov and will run Dynamics “as is,” but his product leaders will report directly to executive vice president of applications and services Qi Lu, who will directly report to EVP of marketing, Tami Reller who will report to the COO group.

“There will be four engineering areas: OS, Apps, Cloud, and Devices. We will keep Dynamics separate as it continues to need special focus and represents significant opportunity,” Ballmer said in the letter. “We will consolidate our technologies coherently into these groups pulling together some things that have been spread out in our current BG structure like cloud infrastructure, operating systems, mail, and identity, to name a few. Some of these changes will involve putting things together and others will involve repartitioning the work, but in all instances we will be more coherent for our users and developers. We have resolved many details of this org, but we still will have more work to do.”

Ballmer’s memo also noted that the company “would strive for a single experience for everything in a person's life that matters. One experience, one company, one set of learnings, one set of apps, and one personal library of entertainment, photos and information everywhere.”

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