Sinofsky

Steven Sinofsky, the no-nonsense Microsoft executive credited with bringing new discipline to Windows engineering, will be named the company's newest divisional president today, according to multiple sources. The promotion signals the company's confidence in Sinofsky's revival of its flagship product -- coming just as his team puts the finishing touches on Windows 7.

"Windows 7 is receiving terrific feedback from customers, partners, analysts alike, and the entire Windows team has done a great job," wrote Microsoft CEO Steve Ballmer in an internal email to employees announcing Sinofsky's promotion, obtained by TechFlash.

At the same time, Bill Veghte, the senior vice president in charge of Windows sales and marketing, "will take a new leadership role in the company to be announced later this year," Ballmer wrote. Veghte and Sinofsky had been peers in Microsoft's corporate hierarchy.

Sinofsky, previously senior vice president of Windows and Windows Live engineering, will be grappling with new competition in his elevated role. Google last night announced plans to release its own PC operating system next year, challenging Microsoft's Windows franchise. That and ongoing competition from Apple promise to keep Sinofsky on his toes as he looks ahead to Windows 7's successor.

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The promotion completes Microsoft's lineup of five business division presidents. Ballmer had assumed direct oversight of Windows last year, coinciding with the departure of Kevin Johnson, Microsoft's former Platforms & Services Division president. As new Windows president, Sinofsky oversees Windows, Windows Live and Internet Explorer.

A 20-year Microsoft veteran, Sinofsky was shifted to the Windows division in 2006, after Windows Vista was repeatedly delayed. Before that he oversaw Microsoft Office development -- establishing a reputation for leading efficient, on-time development projects.

He also has a reputation for keeping things low-key and under wraps.

"Not a lot of leaks come out of organizations run by Sinofsky, and that might be a good thing," said Matt Rosoff, analyst at the Directions on Microsoft research firm. "There were times when he was running the Office group that people in the Windows group couldn’t get information about the next version of Office."

Following Windows Vista's troubles, Sinofsky has pushed the Windows team it to be more selective and deliberate in its work on the PC operating system. Writing to Ballmer in February 2007, Sinofsky analyzed Windows Vista's problems and provided what would amount to a blueprint for the company's approach to Windows 7 development.

"We need to be clearer with industry and we need to decide what we will do and do that well and 100% and not just do a little of everything which leaves the (independent hardware vendors) in a confused state," Sinofsky wrote in the email message, which was later made public as part of a lawsuit over Windows Vista.

So far, it appears to have worked. Reviewers and testers are receiving Windows 7 favorably. However, as evidenced by Windows Vista's initial compatibility problems, the true test will come when millions of PC users upgrade to the new operating system and try to run their existing devices and applications. Windows 7 is scheduled for release Oct. 22.

With Windows 7 almost finished, Microsoft wants "to ensure we are setting up for the next release and continue the market leadership and momentum that we have with Windows today," Ballmer wrote in his message to employees. "Accordingly, I am pleased to announce today that Steven Sinofsky will be promoted to President of the Windows Division."

Veghte has overseen Windows sales and marketing at a time of global economic turmoil and the rise of "netbooks" -- small, Web-oriented computers that result in a lower average selling price for the operating system. PC Windows revenue was $11.6 billion through the first nine months of Microsoft's recently completed fiscal year -- down from $12.5 billion in the same period a year before.

Veghte's tenure also included a major advertising campaign intended to restore luster to the Windows brand -- starting with some head-scratching ads starring Jerry Seinfeld and Bill Gates, but also including the "I'm a PC" and "Laptop Hunters" counter-offensives against Apple.

"Under Bill’s leadership, the team has re-energized our approach to marketing and selling Windows and the PC, built stronger relationships with our partners and has laid the right plans for delivering Windows 7 into the market," Ballmer wrote in his message. "In particular, the 'I’m a PC' campaign has really helped energize the brand and create emotional connections between our product and our customers. Bill has a long track record of success at Microsoft in a variety of capacities and we look forward to his continued contributions."

Veghte is expected to take time off after gradually shifting his duties to Tami Reller, the chief financial officer for the Windows division, who will add Windows marketing to her plate, reporting to Sinofsky. Jon DeVaan, senior vice president of the Windows Core Operating System Division, also will report to Sinofsky.