Microsoft CEO internal memo talks about reorganization

Eight out of ten times Microsoft gets a decent amount of press it doesn't seem to be for the right reasons, especially around online circles. Perhaps the most recurrent topic in the last year has been the hit-or-miss release of Windows Vista, and most recently the consecutive failure on acquiring #2 search company, Yahoo. However, that's not to say the software giant is suffering much, if at all from these.

Microsoft CEO, Steve Ballmer, sent a memo to all his employees yesterday in which he quotes a thriving financial year with revenues increasing in the order of $9.3 billion for a total of $60+ billion, and an operating profit of $22.5 billion. But most interesting is the part in which he refers to his competitors. Apple, he said, has prospered thanks to "an experience that is narrow but complete," whereas Windows has had to make compromises in this regard. He said they are actively working on this end-to-end experience with hardware vendors along their side. He also mentioned a big promotional campaign coming up for Vista.

About Google and Yahoo, Ballmer said they've already got all the right pieces to make search work and compete hand in hand with leader Google. Nevertheless, the failed Yahoo acquisition could be considered a setback since they were looking to speed up the process of growing an audience and leveraging its web properties reach.

Among other things, Ballmer announced that Microsoft's former Platforms and Services Division is being split into two: Windows/Windows Live and Online Services, and that long time employee (and president of the splitting division) Kevin Johnson will be leaving the company.