Microsoft names Muglia president of server business

SAN FRANCISCO, Jan 5 (Reuters) - Microsoft Corp (MSFT.O) said on Monday it has promoted longtime executive Bob Muglia to president of the company's server and tools business.

Muglia's new title makes him one of only four divisional presidents at Microsoft. It is a recognition of his contribution to the company's growth, Chief Executive Steve Ballmer said in a memo to employees.

As senior vice president, Muglia helped build Microsoft's server and tools business from "virtually nothing a decade ago" to worth more than $13 billion last year, Ballmer said.

The server and tools business, which makes it money mostly from Windows server operating systems and related services, now accounts for 20 percent of Microsoft's total revenue, Ballmer said. Microsoft earned $60.4 billion in revenue for its fiscal year ended June 30, 2008.

Muglia has been at Microsoft for 21 years. As president, his responsibilities will remain the same, the company said. (Reporting by Anupreeta Das; Editing by Phil Berlowitz)