Microsoft will reorganize into three newly formed divisions, each of which will be led by its own president. In addition, the company said Ray Ozzie will expand his role as chief technical officer by assuming responsibility for helping drive its software-based services strategy and execution across all three divisions, and Jim Allchin will retire at the end of 2006 following the commercial release of Windows Vista. The three divisions are:
- the Microsoft Platform Products & Services Division, which will be led by Kevin Johnson and Jim Allchin as co-presidents. This division comprises Windows Client, Server and Tools, and MSN.
- the Microsoft Business Division, which will be headed by Jeff Raikes as president. This division will deliver software and software-based services that enable organizations to succeed in constantly evolving workplace by amplifying the impact of their people.
- the Microsoft Entertainment & Devices Division, which will be headed by Robbie Bach.