Report: Microsoft Reorgs Windows for Agentic OS Transformation

Microsoft’s Pavan Davuluri was recently promoted and he has reportedly orchestrated a reorg of the Windows business.

“This change unifies Windows engineering work under a single organization,” Davuluri wrote in the memo to employees that was allegedly viewed by The Verge. “Moving the teams working on Windows client and server together into one organization brings focus to delivering against our priorities.”

Davuluri has run Windows and Surface since last year, but his elevation to the role of president earlier this month has apparently given him a broader set of responsibilities. He now oversees Windows client, Windows Server, plus sub-groups like Core OS, Data Intelligence and Fundamentals, Security, and Engineering Systems.

Core OS had been part of the Azure group since 2018.

“There are clear areas where we know we will continue to work with and support the Azure organization, such as in Storage and Networking and Security,” Davuluri’s memo added. “Likewise, we will continue to have dependencies from the core kernel and virtualization and Linux teams, now part of Azure Core, to provide the foundational support for client scenarios, silicon enablement, and WSL.”

While it’s still unclear what this means, if anything, to Windows engineering, Davuluri has his work cut out for him if the goal is to reimagine “Windows as an agentic OS.”