Microsoft has announced the promotion of Judson Althoff to the newly established position of CEO of its commercial business, moving from his current role as executive vice president and chief commercial officer. This shift comes amidst a broader organizational restructuring as the company responds to what CEO Satya Nadella describes as a significant transformation driven by artificial intelligence.
In an internal memo to staff, Nadella outlined the rationale behind Althoff’s elevation, emphasizing the necessity for Microsoft to evolve within the AI landscape. He stated that the integration of sales, marketing, operations, and engineering is essential for propelling growth and enhancing the company’s status as a leading partner in AI transformation.
Althoff has spent the last nine years directing Microsoft’s global sales strategies and has significantly contributed to the development of the Microsoft Customer and Partner Solutions (MCAPS) division. In his new capacity, he will oversee the marketing and operations teams integral to the marketing and selling of Microsoft’s software and services to corporate clients, although he will not directly manage engineering teams.
Leaders of Microsoft’s significant business segments are increasingly receiving CEO titles.
Nadella noted, “By merging operations with the commercial business, we can enhance the connection between customer needs and our delivery and support mechanisms.” Furthermore, Althoff is set to spearhead a newly formed commercial leadership team that unites executives across engineering, sales, marketing, operations, and finance.
This trend of appointing CEOs for major divisions is evident with leaders like Phil Spencer, CEO of Microsoft Gaming, and Mustafa Suleyman, CEO of Microsoft AI. This practice also applied to Microsoft’s acquisitions of GitHub and LinkedIn, although the GitHub CEO role ceased to exist following Thomas Dohmke’s resignation earlier this summer.
While Althoff’s role may seem to position him as a deputy to Nadella, especially since he oversees the company’s primary revenue stream from enterprise clients, the presence of multiple CEOs for various divisions indicates a strategy designed to enable Nadella to concentrate on Microsoft’s technical initiatives rather than a signal of imminent departure.
Nadella asserted, “This also allows our engineering leaders and me to concentrate fully on our most ambitious technical endeavors—ranging from data center expansion and systems architecture to AI research and product innovation. We need to lead with urgency and commitment during this pivotal platform transition.”
In light of these changes, Nadella’s complete memo is provided below:
We are in the midst of a tectonic AI platform shift, one that requires us to both manage and grow our at-scale commercial business today while building the new frontier and executing flawlessly across both.
General-purpose technologies like AI have historically driven profound shifts in productivity and economic growth, presenting us with a special opportunity to help our customers and the world realize this potential.
Our success relies on empowering our commercial and public sector clients and partners to merge human expertise with the capabilities of AI, redefining their operations. To expedite this, we must bring together sales, marketing, operations, and engineering to propel growth and affirm our status as the preferred partner for AI transformation.
Given this context, I have tasked Judson Althoff with assuming an expanded role as CEO of our commercial business. For nearly a decade, Judson has led our global sales organization and was essential in shaping the Microsoft Customer and Partner Solutions (MCAPS) division into what it is today: our leading growth engine.
Takeshi Numoto and his marketing team will connect with this new structure, with Takeshi reporting to Judson as CMO, while also maintaining direct reporting to me for overall business models, planning, consumer marketing, and corporate branding and communications.
Our operations team will also fall under Judson’s leadership. This integration allows us to enhance the feedback loop between customer necessities and our delivery and support systems. Carolina Dybeck Happe will continue to report to me as she focuses on our company’s transformation and collaborates closely with Judson.
Additionally, Judson will oversee a new commercial leadership team that unites leaders from engineering, sales, marketing, operations, and finance to strengthen our product strategy and governance, ensuring accountability for the excellence our customers demand.
This organization will enable our engineering leaders and me to focus deeply on our most ambitious technical goals—spanning our data center expansion, systems design, AI research, and product innovation—allowing us to lead with determination and speed through this generational shift. We each need to excel in rapidly acquiring new skills and adapting our working methods, remaining closely engaged to drive innovation at every level!
This is not merely evolution; it represents a reinvention for all of us, both personally and for Microsoft.
Satya
