Microsoft to reorganize sales and marketing teams

Posted July 05, 2017

The restructuring, which is likely to be announced this week, was attributed to a higher emphasis on cloud services within Microsoft's sales teams worldwide.

In January, Microsoft made some other hefty organisational changes, combining its Small and Mid-Market Solutions & Partners (SMS&P) and Enterprise Partner Group (EPG) business units in an attempt to streamline business processes.

Microsoft Corp. reorganized its sales and marketing operations in a bid to woo more customers in areas like artificial intelligence and the cloud by providing sales staff with greater technical and industry-specific expertise. Microsoft is making headway into the cloud services sector now dominated by Amazon Web Services and wants to further its cause with the proposed adjustment of its sales force which has typically focused on selling licensed software for PCs and servers.

For a long time, Microsoft has trained its sales force to convince customers to buy software for their desktops and servers.

That's according to TechCrunch, whose report comes via a "source with knowledge of the planned downsizing" that Microsoft is preparing to lay-off staff across the world.

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Notably, current business-sales chief Althoff expressed his dissatisfaction over the sales techniques of the company in an interview. The restructuring will also include an organizational merger of its enterprise customer unit with its one or more SME-focused divisions.

Microsoft is to release its earnings for the recently-ended quarter on July 20. A Microsoft spokesman declined to comment. Instead, it's another step towards the new business model Microsoft has been pursuing under CEO Satya Nadella.

Microsoft is amid a pretty innovative time, with it developing its own silicon for the latest Surface Pro devices thanks to clever partnerships and acquisitions.

In a recent research note, analyst Brent Bracelin forecasted that Microsoft Azure could overtake AWS in revenue this year, which would see it take the lead position for the first time. The changes are likely to be announced by the end of this week.