Microsoft shook up its executive ranks Thursday, bringing together a triumvirate of managers to take by its troubled online-services operations and shaking up management of Windows Mobile and Vista.

Steve Berkowitz, the former head of Ask Jeeves, who has been running online services for the past two years, was ousted; he will remain through August to aid the transition. Taking by for Berkowitz are three longtime Microsoft executives, a move that contrasts with bringing in Berkowitz from outside.

Bill Veghte will handle marketing and product management for Windows Live, search and MSN, as well as for Vista. Satya Nadella will run engineering for search, portals and advertising. Brian McAndrews, previously CEO of aQuantive, which Microsoft bought in May, will be responsible for marketing and engineering for Microsoft’s advertising and publishing solutions group.

Prepping for Yahoo?

There was widespread speculation that the shake-up is preparation for the integration of Yahoo, should Microsoft succeed in acquiring the Silicon

Valley icon. “They always talk about the acquisition as a done deal, but the fact is it’s not a done deal — and [Yahoo’s] talks with News Corp. produce it a little more uncertain,” noted Greg Sterling, principal analyst with Sterling Market Research. “But notwithstanding that confidence, you can’t reorganize the company before the deal is done.”

Microsoft top management is “playing both sides,” Sterling said. “They’re thinking Yahoo is going to be acquired but it plus has independent integrity.” Although the moves are “not entirely a statement” that Microsoft’s strategy hasn’t been working, they do “reflect Microsoft’s desire to put more emphasis on search and mobile,” he added.

With the bid for Yahoo and other acquisitions Microsoft has made, including the purchase last year of aQuantive and that week’s purchase of handset maker Danger, “Microsoft is trying to redouble its efforts” on these fronts, Sterling said.

Mobile focus on…

Orginal post by Top Tech News