Microsoft's announcement of a dramatic reorganization sparked a flurry of chatter in the blogosphere. The company's shift to a structure consisting of three major divisions came alongside news that Jim Allchin, the head of Windows development, will retire when Vista is released. The announcement of Allchin's upcoming exit alone was enough to get Microsoft watchers talking, since he has largely guided the direction Windows has taken over the years. But one of the newly formed divisions is leading to speculation about Microsoft's plans. That Microsoft has folded its MSN group into its platform product development group is a signal that the company is reacting to Google's dominance on the Web and will use the new group to compete in the realm of on-demand software. Whether the reorganization will be enough for Microsoft to carve out its place in the Web 2.0 world is up for debate. Many in the blogging community see the move as the death throes of an aging company.