Exclusive: Microsoft Reorganizes Azure Cloud Unit Amid AI Overhaul

Microsoft is overhauling the leadership of its Azure cloud business, cloud chief Scott Guthrie told staff Monday, as the company consolidate units and reorients itself around AI.

As part of the reorg, Arun Ulag, who previously oversaw Azure’s database products, will now also oversee executives who work on Azure Core, which provides computing power to customers such as OpenAI, and Azure’s engineering division. The executives include Girish Bablani, Billy Anders, Douglas Phillips and Mark Russinovich, Guthrie told staff. Charlie Bell, who previously led Microsoft’s security business before stepping into an advisory role earlier this year, will also now report to Ulag, said the person with direct knowledge of the reorg.

The reshuffle follows a string of senior departures from Microsoft this year, including Azure leaders like Azure AI leader Eric Boyd, who left Microsoft to become Anthropic’s head of infra last spring. CEO Satya Nadella has meanwhile installed a new generation of leaders across the company while giving them more oversight of its business, including Ulag, whom Nadella has brought to board meetings earlier this year and is seen internally as one of Nadella’s proteges, The Information reported separately Monday.