Microsoft Creates Internet-Related Divisions

Microsoft Corp. on Tuesday announced a reorganization of its major product divisions, largely aimed at speeding the computer software company’s response to the rapid growth of the Internet.

The reorganization includes the creation of two divisions focused on the Internet and online activities: the interactive media division and the Internet platform and tools division.

The decision marks a turnaround for Microsoft Chairman Bill Gates, who said at a briefing for reporters and analysts in December that a separate Internet division would be “like having an electricity division or a software division.”

Company executives said Tuesday that a separate division is required in part because of the speed with which Internet products need to be developed.

“What we’ve said, which is that Microsoft’s answer to the Internet is Microsoft, is absolutely still the case,” Group Vice President Paul Maritz told reporters in a conference call.

“Every division and product group at Microsoft is thinking very carefully about how to meet the communications and online revolution that is unfolding before us,” he said.