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For the last couple years, I started a discussion with Steve about how to shift my priorities and yet maintain strong ties to Microsoft. After careful consideration, Steve and I decided to announce a two-year transition plan that will shift my day-to-day responsibilities to a group of incredible technical leaders who are already doing amazing things at the company. We have a great team of people. I believe we can make this transition without the company missing a beat.
Ray Ozzie will take on the role of Chief Software Architect starting immediately. I was thrilled a year ago when Ray joined the company. You’ve all seen him step up to help drive our Live Services strategy. For the next two years, Ray and I will work side-by-side to ensure a smooth transition. I’ve worked with Ray for over 20 years, and his vision has led to some of the most important developments in our industry. Over time, he’ll take on the central role for architectural leadership at Microsoft. David Vaskevitch, who has done key work in many areas including our enterprise platform, will move to work for Ray, with the same responsibilities he has today.
Another key leader who will step up to additional responsibilities is Craig Mundie, whose title will become Chief Research and Strategy Officer. Over time, Craig will assume my responsibility for our research and incubation efforts. Rick Rashid will report to Craig, and Rick and his team will continue to run Microsoft Research, which is one of the most valuable assets the company has, a source of tremendous long-term innovation. Craig, in partnership with Brad Smith, will also step up to manage our intellectual property and technology policy work. Craig has been a leader in early product innovation and policy issues throughout his career. This is a natural expansion of his role at Microsoft.
In addition, Steve has identified several key product leaders from across the divisions – Bob Muglia, J Allard, and Steven Sinofsky – who will step up with my current staff to play an expanded role in shaping the company’s business and technology strategy. The world has had a tendency to focus a disproportionate amount of attention on me. In reality, Microsoft has always had an unbelievable strong depth and breadth of technical talent. It starts with the senior executives, but it extends to our Technical Fellows, our Distinguished Engineers, our researchers around the world, and the thousands of awesome technical people throughout our product groups. Our technical talent is the best in the world.
The same is true of our business leadership, as well. Steve’s organization of the company into three divisions under Jeff Raikes, Robbie Bach, and Kevin Johnson, we’ve laid the foundation for greater focus and agility. With the great addition of Kevin Turner as COO, our leadership team has never been stronger.
Obviously, this decision was a hard one for me to make. I’m very lucky to have two passions that I feel are so important and so challenging.
Even as I prepare to shift my focus in July 2008, I know Microsoft is well-positioned for success in the years ahead. Our core businesses are strong. We have a clear vision for how we will meet new challenges and opportunities. We just had our first US$12 billion quarter. We continue to generate almost a billion dollars in profit every month. We are about to launch breakthrough versions of Windows, Office and Exchange, which are already generating a lot of excitement.
Six years ago, Steve and I made a major transition when he stepped up to be CEO. He’s done a fantastic job by every measure, whether it’s the people he’s brought in, the new ways he’s running the company, or just the objective results, like doubling our sales and profits during that time. Steve has driven us to make bold bets on things like Xbox, Real Time Communications, business applications, IPTV, and many others including the Live platform. Steve is the best CEO for Microsoft I could imagine. He is changing the company in ways it needs to be changed. He is bringing in new leadership at all levels. And he is focused on the long term, how to make Microsoft a great company not just for today but for decades to come.
The change we’re announcing today is not a retirement. It's a reordering of my priorities. There’s a common thread through my different work, at Microsoft and at the Foundation. It's a sense of optimism that smart, committed people with the right support and vision can have a huge impact. It's about using technology, not just for the privileged few but for everyone.
The road ahead will let me take on new challenges while keeping my connection to this great company. The road ahead for Microsoft is as bright as ever.
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