Steve Ballmer, CEO of Microsoft is considering a structural reorganization that would place Tony Bates, Skype President, in charge of the acquisitions and relations that Microsoft has with other developers. Windows CEO, Julie Larson-Green would handle the oversight when it comes to hardware engineering.

Ballmer is expected to make the announcement for the reorganization by early next week. This move is essential as it aligns with Microsoft's business units which are devices and services.

Microsoft is currently struggling to gain a share in the clamor for tablets and mobile phones. The announcement of the shift in strategy will place the world's largest software maker to focus more on the development and marketing of internet based services and computing devices.

The talks for restructuring are not finalized, sources say. Ballmer may still shuffle some roles around the corporate structure until the official announcement. Don Mattrick, Xbox head, was a great contender for the hardware engineering post, left the company yesterday to take on the role of CEO for Zynga Inc.