Phones remain a critical component of the Microsoft device portfolio and an important piece of our mobility strategy, but a restructuring is in order.

To align with our new strategy to enhance the Windows device ecosystem, we are integrating Microsoft Mobile Device Sales (MMDS) underneath the Consumer Channels Group (CCG).

We have been investing in building a mobile-first selling capability by establishing the Consumer Channels Group to strengthen and align the device-selling motion and to expand our impact with OEM, retail channel partners and our operator channel, and by extending it with our opening of Microsoft Stores.

The reality is the world's shifted; the world's evolved. We now measure ourself by total device space. We have a much bigger opportunity than we've ever had in the past to grow our business, but we have to rethink how we look at our business.

If you bet on Microsoft, you are not going to ask anymore, 'Hey, where is the innovation?' The challenge going forward is how do we keep up with it.

As a team, we have a lot of work ahead of us in FY16 and beyond, but I am confident that, working together, we will make Microsoft a leader in the mobile-first, cloud-first world.