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Microsoft Gains Belluzo

As previously rumored, Microsoft Corp. announced last week that Richard Belluzo, former CEO for Silicon Graphics Inc. (SGI, www.sgi.com) will join the company as group vice president in charge of Microsoft's consumer and commerce group.

The consumer and commerce group is in charge of the MSN dial-up service and Web portal, Web/TV and cable Internet strategies and Microsoft's leading free Web-based e-mail service Hotmail (www.hotmail.com).

Belluzo resigned from SGI two weeks ago. Company officials said Belluzo was taking a non-CEO job at a company that did not compete with SGI. The Wall Street Journal reported Belluzo would make the move to Redmond, Wash., but Microsoft officials denied it until last Thursday.

Belluzo joined SGI in January 1998 to stymie SGI's decline in the workstation market to cheaper hardware manufacturers. SGI had lost money every quarter during Belluzo's reign until the last one when the company reported better-than-expected earnings. SGI's attempt at the Windows NT workstation hasn't brought in the revenue the company thought it would.

Most of the implications of Belluzo's move to the Pacific Northwest are to Microsoft's consumer market. In a press call, Microsoft President Steve Ballmer says he sees Belluzo as a "focused and intense business manager." The consumer and commerce group was previously headed by Brad Chase and John DeVaan. The two will remain in the division as senior vice presidents. -- Brian Ploskina

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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