Microsoft Reorganization: Windows chief Jim Allchin retires

It must be the season for reorganization, and our friends at Microsoft are in the midst of it.

Earlier in the week, Microsoft announced a major reorganization of the company. Microsoft CEO Steve Ballmer, said, "Our goal in making these changes is to enable Microsoft to achieve greater agility."

The reorganization divides the company into three major divisions:

• Business -- Microsoft's Information Worker group (which includes its Office product line), and the Business Solutions packaged applications group. Jeff Raikes will head the division up.
• Platform Products and Services – This encapsulates Windows Client, Server and Tools and MSN. Kevin Johnson and Jim Alchin will be co-presidents for now. After the release of Vista, Jim Allchin will retire leaving the division head job to Kevin Johnson. Johnson has spent most of his 13 years at Microsoft rising through the company's sales and marketing ranks. He landed the top sales post two years ago and has since helped Microsoft keep up its double-digit growth, an impressive feat for such a large company. The creation of this division, bringing MSN and the platform group together, is a clear signal that Microsoft is reacting to Google's dominance on the Web and will use this new group to compete in the realm of on-demand software.
• Entertainment and Devices – This will bring games and mobile device into one division. Robbie Bach will be president and maybe we will see the features of XBox 360 on a mobile device.

Goodbye, Jim Alchin.