It shouldn't come as much of a surprise that Microsoft has chose to lump together its cloud services with its AI research-combining the two is a big business, with Google, Amazon, and Chinese firms all providing stiff competition.
Myerson will leave Microsoft with Windows 10 approaching 700 million users, Xbox One running a Windows 10 core plus Surface and HoloLens looking good as devices pushing innovation. Rajesh Jha, who now leads parts of the Office team, will oversee a group focused on devices and expanding software such as Windows and Office to follow users wherever they go. Terry Myerson, a Microsoft veteran of over two decades and most recently the head of the company's Windows and Devices group, is leaving.
The shuffle moves work on Windows to the same team handling Microsoft's Azure cloud software. Scott Guthrie who now head the Cloud division will lead this second engineering group focused on cloud and AI technology including Azure.
On the Devices side, Panos Panay will now serve as Chief Product Officer. The changes reflect the shrinking role of Windows, the operating system that runs most of the world's PCs, as computing shifts toward areas like cloud, mobile, productivity and artificial intelligence software.
Kudo Tsunoda will remain in charge of New Experiences and Technology, and Brad Anderson will remain in charge of Enterprise Mobility and Management. The Windows and Devices Group is being split apart too.
In describing today's reorg, Nadella said the moves are part of Microsoft's goal to focus on the "intelligent cloud and the intelligent edge".
Jason Zander is being promoted to executive vice president, Azure, and will lead this team.
Meanwhile, the Guthrie-helmed Cloud + AI Platform team will be responsible for driving "platform coherence and compelling value across all layers of the tech stack starting with the distributed computing fabric (cloud and edge) to AI (infrastructure, runtimes, frameworks, tools and higher-level services around perception, knowledge and cognition)", Nadella wrote. The name is fairly self-explanatory, as Guthrie will head up development of Microsoft's cloud services and its AI and augmented reality research and development. Eric Boyd was assigned as lead of a new team called "AI Cognitive Services & Platform".
Harry Shum will continue to lead Microsoft's third engineering team, which focuses on A.I. and research and was established in 2016, Nadella said.