Om Malik links to the Microsoft press release announcing a new reorganisation at Redmond. Scoble has a bit more - especially in the comments.

While the announcement is suitably upbeat, as you’d expect, I think it does show that senior management know something is wrong, but aren’t quite sure what it is or what to do about it. The reorg establishes 3 divisions; Microsoft Platform Products & Services Division, Microsoft Business Division and Microsoft Entertainment & Devices Division.

‚ÄúThese changes are designed to align our Business Groups in a way that will enhance decision-making and speed of execution, as well as help us continue to deliver the types of products and services our customers want most,‚Äù said Steve Ballmer, chief executive officer at Microsoft. “By bringing together the software experience and the service experience, we will better address the changing needs of our customers‚Äô digital lifestyles and the new world of work.‚Äù

The mobile part, in case you were wondering, is in the devices bit - but they had to stick it somewhere, I guess.

This doesn’t seem to address how the world is fundamentally changing though; open source, thin client, web services, mobile - the combination being what I call Mobile 2.0, but many people still refer to as Web 2.0.

While Microsoft may be able to make faster decisions now, this doesn’t really help if their framework and strategy is fundamentally flawed. They’re not only paddling their canoe in the wrong direction - they’re paddling up the wrong river.