Microsoft Names President of Servers Unit

Microsoft(MSFT Quote) promoted Bob Muglia to president of the company's server and tools business, making him one of only four divisional presidents at Microsoft, according to published reports.

The promotion reflects the growing importance of the server unit, which accounted for $13 billion in revenue in the most recent fiscal year, now making up a fifth of Microsoft's total sales, reports CNET news.

Muglia's promotion was announced in an email to employees on Monday, according to CNET.

The Wall Street Journal reports that Muglia's division, which Muglia has been running since late 2005, has reported 25 consecutive quarters of double-digit revenue growth.

Analysts believe Microsoft has been seeking more attention for Muglia's division, in part because the faltering economy may have a more severe impact on more high-profile businesses like its Windows software, according to the Journal.

Muglia's promotion will raise speculation about the pecking order for executives at Microsoft, as well as its succession plans for CEO of the company should Steve Ballmer depart, reports Computerworld. Ballmer has said publicly he plans to retire in 2018.