STB President Robert Muglia Leaving Microsoft

Robert Muglia, president of the Servers and Tools Business unit at Microsoft, is leaving the company this summer after 22 years of service, and just as the company is betting heavily on its future in the cloud computing space.

The STB unit is responsible for Microsoft’s infrastructure software, developer tools and cloud platform, including Windows Server, SQL Server, Visual Studio, System Center and the Windows Azure Platform – making Muglia’s position at the company integral as the company moves beyond its traditional OS-focused business model. Microsoft is looking both inside and outside the company for a replacement, but there is speculation the position will be awarded to Amitabh Srivastava, who currently heads up the Windows Azure group and reports to Muglia.

Muglia’s impending departure was announced Jan. 11, 2011, in an e-mail to employees.

“I have decided that now is the time to put new leadership in place for STB,” wrote Microsoft President and CEO Steve Ballmer in the e-mail. “This is simply recognition that all businesses go through cycles and need new and different talent to manage through those cycles. Bob has been a phenomenal partner throughout this process, and he and his leadership team have the right strategy in place.”

Muglia joined Microsoft in 1988. During his history with Microsoft Muglia played many roles, including leading the company’s Developer, Office and Mobile Devices divisions as well as certain parts of the Windows NT and online services businesses. He was appointed president of STB in 2009.

The state of the division’s business certainly didn’t have anything to do with Ballmer’s decision to replace Muglia: STB posted a double-digit increase in sales the past two quarters, and for its fiscal year ended June 30, its revenue increased 4.8 percent to $14.87 billion and saw a 14 percent increase in its operating profit.

Muglia will remain in his position until summer while the search for a replacement is under way. He is the fourth executive to leave Microsoft in the last 12 months, following in the footsteps of Robbie Bach, former president of the Entertainment and Devices Division; Stephen Elop, former president of the Microsoft Business Division; and Ray Ozzie, former chief software architect.

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