Microsoft Reorganizes Search

Chris Payne, Microsoft's top search executive, and Blake Irving, who is in charge of platform development, are both leaving Microsoft.

Their one-and-a-half-man replacement will be Satya Nadella, who will be responsible for search and Microsoft's adverting platform. Nadella will assume all of Payne's responsibilities, but only some of Irving's. Microsoft will divvy up Irving's remaining responsibilities once he leaves, which is expected to be late summer. Nadella will report to Kevin Johnson, president of Microsoft's Platform & Services division, and lead the new Search and Ad Platform group.

"It's Kevin making a leadership decision to put these together and to elevate them," said Adam Sohn, Microsoft's global sales and marketing PR director. "Reporting directly to Kevin shows our commitment to search."

Nearly two weeks ago, I asked the question: Who Shot Windows Live? I left someone off the possible shooter list, who Mini-Microsoft rightly identified: Steven Sinofsky. My sources say some old-school MSN executives haven't gotten along so well with Sinofsky. Now Microsoft's top search executive will report to Johnson instead.

Nadella is expected to assume his new role no later than April 19, as he transitions from leader of Microsoft Dynamics. Tami Reller, corporate vice president with the Business Solutions Marketing Group, will assume Nadella's role on an acting basis.

Sohn said that the reorganization reflects the emphasis on search and advertising as "cross-company" initiatives. "Advertising isn't just about buttons and banners on MSN," he said.

Looking ahead, the new search and ad group will increase emphasis in other areas, such as gaming, IPTV, mobile devices and other Microsoft Web sites, Sohn emphasized.

The new Search and Ad Platform group also will get a chief scientist. Harry Shum, managing director of Microsoft Research Asia, will add the new role to his current responsibilities.

"His job will be to set the short-, medium- and long-term technical vision," Sohn said.

Microsoft announced the organizational changes the same day Comscore released February U.S. search data. The minuscule .1 percent gain some Microsoft executives touted for January evaporated in February. Once again, Google led the pack, with 48.1 percent search share. Americans conducted 6.9 million search queries in February, of which Google processed 3.3 million.

It seems to me that search and advertising should have been put together long ago, as they once were more aligned in the not-so-distant past.

"Organizationally, it makes sense to put these things together," Sohn conceded.

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