The ever-vigilant Redmond watcher Mary Jo Foley over at ZDNet reports that Microsoft's Server and Tools unit (but not the P&L - Microsoft will still report server and tools financials), which is responsible for Microsoft Windows Server, SQL Server, Visual Studio, System Center management products and Forefront security products, is now part of the Business Division, the home of Office and Dynamics.

Mary Jo finds this move 'curious' but I can see the logic. It's hinted at (if you get past the marketing speak) in the company's official statement that it made the move to:

sharpen leadership focus on the company’s top priorities and align its organization for innovation, ultimately enabling it to deliver even more value to its customers.

I think this is all about making it easier for Microsoft to articulate propositions which resonate with the key concerns of senior business and IT people. The reality is that key strategic business and IT initiatives - SOA, BPM, compliance ... - increasingly depend on multiple technologies and associated competencies, which cross traditional stovepipes. Big SOA, for example, is about managing IT work across the entire service lifecycle and so touches project and portfolio management, software development and integration, IT service management. BPM, as the other Neil pointed out, is about Office as much as it is BizTalk and Workflow Foundation.

In the past, the way that Microsoft has been organised has worked against the articulation of such joined-up propositions (that's in part why it took the company so long to talk about SOA). Customers would get different answers to the same cross-cutting requirement depending on which Microsoft stovepipe they were talking to: you need BizTalk and SQL Server; you need OBA and SharePoint. [As an aside, I said much of this in an interview with Microsoft PR earlier in the week].

Obviously, shifting branches of the org chart is comparatively easy (even it is very big). The hard part is going to be changing behaviour, joining up the marketing etc. The creation of the Connected Systems Division back in 2005 shows that the company can pull this sort of thing off (albeit on a smaller scale in the Server and Tools Business as was) and Jeff Raikes, who now owns the combined entity, has the influence and power to drive things through at this larger scale.

I am off to a Server and Tools Business analyst event in just over a week so I will hopefully learn more then.