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The reorganisation Microsoft announced on Thursday represents the most sweeping re-structuring of the world's largest software company since 2008, designed to better align Microsoft's operations with Chief Executive Steve Ballmer's stated goal of becoming a "devices and services" company.
Microsoft's stronghold providing software for PCs is under threat as consumers and corporations increasingly turn to mobile devices, such as smartphones and tablets, and to web-based software.
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The new management structure will create four main product groups, instead of the five business units that have comprised Microsoft's business in recent years. The changes will also shuffle Microsoft's leadership ranks, providing new roles and responsibilities for many of the top brass.
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Here's a rundown of the Microsoft's new main business units and the executives running then:
Satya Nadella
Will run the Cloud and Enterprise Engineering Group. The company's leading authority on Internet infrastructure and former chief of the Server and Tools unit takes over all web-based cloud services such as Azure, which competes with Amazon.com's AWS. A tech heavy-hitter originally from India, he joined Microsoft in 1992. Previously, he worked for Sun Microsystems.
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Julie Larson-Green
The former Windows co-chief will head up Devices and Studio Engineering, incorporating all hardware development as well as games, music, video and other entertainment. Previously, she ran the technical side of the Windows unit, which includes the Surface tablet. She joined Microsoft in 1993.
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Terry Myerson
As leader of the Operating Systems Engineering Group, he sits atop all development of hardware and related software of the flagship operating software for a plethora of devices, from the Surface to the Xbox.
Myerson previously oversaw the Windows Phone unit, responsible for the company's revamped efforts to take on Apple and Google in the booming smartphone market - with little success. He joined Microsoft in 1997.
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Qi Lu
He will run Applications and Services Engineering. Formerly the overseer of perennially money-losing online services like Bing and the MSN web portal, he now takes Office software, one of Microsoft's biggest cash cows. Lu came to Microsoft after working for Yahoo for 10 years, leading its Internet search and advertising technology efforts. He holds 20 US patents.