NEW YORK —
At the same time, Ballmer appears determined to eliminate bureaucracy in hopes of making Microsoft operate more like a nimble startup able to quickly innovate — a goal that Google CEO Larry Page set out to achieve when he took over leadership of that company two years ago.
Janney Capital Markets analyst Yun Kim said the reorganization helps align Microsoft's various divisions around its devices and services strategy, but he added that he's taking a "wait and see" approach.
"We continue to look for signs on how the company can leverage its success in the Xbox business to re-energize its current efforts in the tablet and smartphone markets," Kim wrote in a note to investors.
BGC Financial's Gillis noted that major reorganizations "can serve as a negative distraction for months before potentially offering benefits."