Satya Nadella To: Microsoft - All Employees Date: March 31, 2014 Subject: Tuning our organization Today marks the

start of another big week for Microsoft as we gear up for th e Build conference in San Francisco. We continue to push on the momentum from la st week's news about how we will thrive and grow in a mobile-first, cloud-first world, as shown by the great Office apps for iOS, rich new APIs for developers a nd our new Enterprise Mobility Suite. In advance of Build, I want to highlight three announcements about how we're continuing to evolve and tune our organization for maximum focus and impact. First, I am pleased to announce that after his two months as acting leader f or the Cloud and Enterprise organization, I have promoted Scott Guthrie to Execu tive Vice President, where he will continue to lead and drive the organization. As you know, Scott has been a very public and passionate evangelist for many of our most important developer and infrastructure businesses. Since joining Micros oft in 1997, he has made critical contributions to .NET and other pivotal techno logies that help power the Microsoft ecosystem today, and most recently has been the driver behind the unprecedented growth of Microsoft Azure. As a leader, Sco tt has shown incredible energy and insight into how we create technology that ot hers can build on, and which can be built on what others have created. Please jo in me in congratulating Scott on his promotion! Next, I have asked Phil Spencer to take on a new role leading Xbox, combinin g the Xbox and Xbox Live development teams with the Microsoft Studios team. Phil will report to Terry Myerson, allowing us to keep gaming close to the group dev eloping operating systems across devices. In this new job, Phil will lead the Xb ox, Xbox Live, Xbox Music and Xbox Video teams, and Microsoft Studios. Combining all our software, gaming and content assets across the Xbox team under a single leader and aligning with the OSG team will help ensure we continue to do great work across the Xbox business, and bring more of the magic of Xbox to all form f actors, including tablets, PCs and phones. Phil will continue his close partners hip with Yusuf Mehdi, who leads business strategy and marketing for Xbox, George Peckham, who heads up third-party partnerships and Mike Angiulo, who will conti nue leading Xbox hardware. Over the years, Phil's team at Microsoft Studios has helped build a community of more than 80 million Xbox owners and 48 million Xbox Live members through blockbuster game franchises such as "Halo," "Gears of War, " "Kinect Sports," "Fable," "Forza Motorsport" and many others. He's helped driv e the development of brand-new entertainment offerings like the partnership with the NFL and the formation of Xbox Entertainment Studios. I love the way the Xbo x team is focused on great games and gaming experiences (go, "Titanfall"!), conn ects with its fans, pushes the boundary of entertainment and has embraced the po wer of the cloud in such interesting and impactful ways. Phil is the right perso n to lead Xbox forward. Finally, effective with the close of our deal with Nokia, Stephen Elop will join Microsoft as Executive Vice President, Microsoft Devices Group, reporting t o me. We expect to close the acquisition by the end of April 2014. I've had a ch ance to work closely with Stephen, when he was previously a senior leader with M icrosoft, as a key partner during his tenure as Nokia CEO, and again in the last several months as we've worked through the initial stages of integration planni ng. I look forward to working with Stephen as a key member of the senior leaders hip team and welcoming the Nokia Devices and Services employees to the Microsoft family. The mobile capabilities, hardware design expertise, and world-class man ufacturing and supply chain operations they bring will help us drive innovations

in devices to delight our customers. Stephen will partner closely with Phil and Terry on Xbox and will bring together many of the top leaders from his existing Nokia Devices and Services organization as well as the current leaders of the D evices and Studios team. Recently, I've discussed with the Microsoft leadership team the need to zero in on what truly makes Microsoft unique. As I said on my first day, we need to do everything possible to thrive in a mobile-first, cloud-first world. The annou ncements last week, our news this week, the Nokia acquisition closing soon, and the leaders and teams we are putting in place are all great first steps in makin g this happen. There's a lot of work ahead of us and I am counting on every single one of y ou to bring your "A" game every single day. I look forward to our second employe e Q&A session on Thursday and hearing what's on your mind and sharing more about what's on mine. Satya