|
Microsoft picks Net head
|
 |
September 2, 1999: 1:19 p.m. ET
Former SGI chief Belluzzo is named to take over Microsoft's Net unit
|
NEW YORK (CNNfn) - Microsoft Corp. Thursday named former SGI chief executive officer Richard Belluzzo to head up its Internet operations, a unit Microsoft wants to put increased emphasis on.
The move was widely expected after Belluzzo resigned from the workstation maker SGI last week after less than two years on the job, stating that he wasn't going to leave for a competitor to SGI.
Belluzzo's will be Consumer and Commerce Group vice president at Microsoft, the division charged with driving the software giant's Internet software and services for consumers and businesses.
Microsoft has drawn criticism in the past for not being as ahead of the Web curve as other companies, and Microsoft President Steve Ballmer acknowledged Thursday Belluzzo was being brought in to help in that regard.
"Today's announcements underscore our commitment to executing decisively and rapidly in the online services space by forming a seasoned management team that is dedicated to improving and facilitating commerce for consumers," Ballmer said.
At the same time, Microsoft announced that company executives Brad Chase and Jon DeVaan also are being promoted to form the core of the team that will tackle Microsoft's Internet strategy.
Microsoft already has some strong-performing Internet properties as it is, with its MSN portal, Hotmail free e-mail service and MSN Messaging Service.
However, the company felt it needed to take a more defined approach to Net ventures, and has even considered eventually issuing a tracking stock for its Internet operations.
Microsoft also was affected by the departure of Pete Higgins, who left his position as head of Net operations last fall.
As part of a March reorganization, the company formed the Consumer and Commerce Group. Combined, CCG generates more than $2.4 billion in revenues, or about 12 percent of Microsoft's bottom line.
And while CCG has made some beneficial changes -- most notably, selling Microsoft's MSN Sidewalk city guides for $280 million -- it still lacked a leader.
That role is filled by Belluzzo, who had been a longtime executive at Hewlett-Packard (HWP) before jumping ship in early 1998 to lead a turnaround at troubled SGI.
Belluzzo's departure from SGI last week surprised those both within and outside the company. He had just completed a roll-out of a strategy SGI hopes will help the struggling company get back into form.
While the operations Belluzzo takes over at Microsoft may not be as troubled as at SGI, he will have to more clearly define a strategy with regard to the company's properties.
Specifically, that means creating an electronic commerce one-stop shopping experience to let Microsoft start driving more sales over the Internet.
Belluzzo appeared aware and ready for the task Thursday. "The opportunity to work with such great people, and the fact that we have the chance to have a huge impact on the lives of millions of people, is both exciting and challenging," he said.
Microsoft (MSFT) shares were off 3/16 to 92-3/16 after the announcement. 
|
|
|
|
|
|
Microsoft
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
