Microsoft has melted the groups behind the Windows Server & Solutions and the Windows Azure Cloud platform into a single organization. Dubbed the Server & Cloud Division, the new Server & Tools Business unit which will jointly develop both the server-side and the Cloud-based flavors of what is essentially, at the core, Windows Sever. Microsoft referred to the move as a natural evolution designed to reflect the alignment of the company’s resources and strategy.

At the professional Developers Conference 2009 (PDC 2009) in Los Angeles, Microsoft announced the official launch of Windows Azure. Windows Server 2008 R2, formerly codenamed Windows 7 Server has already been available to customers, having RTM’d concomitantly with Windows 7, on July 22nd, 2009. The Redmond company notes that Windows Azure has evolved from being just a development project to a mainstream business, even though customers will only start paying money for the use of the Cloud OS as of February 2010.

“SCD will deliver solutions that help our customers realize even greater benefits from Microsoft’s investments in on-premises and cloud technologies. And the new division will help strengthen an already solid and extensive partner ecosystem,” revealed a member of the Windows Server team. “As the only company in the industry that has the leading server platform complemented by a massive investment in online services, we have the unique ability to offer our customers a choice to tap into one or both approaches simultaneously through one consistent platform.”

The realignment of resources means that the Windows Azure team will also see a change in leadership. In this context, not only will the Windows Azure development team no longer work under Chief Software Architect Ray Ozzie, but following the move to the Server & Tools Business, it will be helmed by Bob Muglia, President, Server and Tools Division. Microsoft notes that Senior Vice President Amitabh Srivastava will be responsible for leading the newly formed SCD, and that he will be reporting directly to Muglia.

“Together, Windows Server, Windows Azure, SQL Server, SQL Azure, Visual Studio and System Center help customers extend existing investments to include a future that will combine both on-premises and cloud solutions, and SCD is now a key player in that effort,” the Windows Server team representative added.