The software giant Microsoft has always mastered the market by dominating the segments which seems paying off the best revenues.

But the company has not experienced the same fate in online marketing and advertising. It has not so far been able to capitalize on online advertising and services. It has not been able to cope with the dominant power of Google. Neither its efforts to bolster this business are proving worthy.

In wake to boost this business, the company has announced strong plans to reorganize its Platform and Services division, which oversees its Online Services Business (OSB) and its lucrative Windows OS business, into two groups to separate its distinct online brands. Along with this the company has also announced the departure of the president of the group, Kevin Johnson, who is supposedly leaving the company to join Juniper Networks.

Under reorganization both the units will report directly to Steve Ballmer. This shows that new CEO is taking hard steps to make the company worth competitive in search business for which it is trying hard since it has been launched.

The steps are just to overcome the losses which its online unit is reporting. For Microsoft's fiscal 2008, the online business showed loss of $1.23 billion in operating income; a nearly 100 percent increase over the $617 million loss in operating income in fiscal 2007.

Renu Singh, ITVoir Network