One could play some serious buzzword bingo with the line, and it's not the most elegantly written statement I've ever seen. Still, I take it to mean "we're trying to integrate our devices and our experiences."

In other words, Ballmer realizes MS is a heavily siloed company, and that developing in silos is proving counterproductive to any serious attempt at cross-screen UX and platform integration.

How much of that is true, and how much of that is the spin being given to a cost-cutting reorg, is up for debate.