Microsoft named Steven Sinofsky president of its embattled Windows Division on the very day Google announced plans to build an operating system meant to destroy Windows.

The appointment is no great stretch. With Microsoft for 20 years, Sinofsky has been leading the Windows and Windows Live Engineering Group together with SVP Bill Veghte and is credited with contributing to the October 22 availability of Windows 7.

Veghte, who’s had revenue responsibility for Windows, is being shifted to a new unidentified position.

Tami Reller, currently Windows Division CFO and a Great Plains legacy, also will take on the additional marketing responsibilities reporting to Sinofsky.

Microsoft said the transition between Reller and Veghte is timed to take place in late July when Windows 7 RTMs.

As president, Sinofsky will run both engineering and marketing for Windows, Windows Live and Internet Explorer, currently all pain points for Microsoft given regulatory issues in Europe and market erosion.

In a canned statement Microsoft CEO Steve Ballmer called Sinofsky “a perfect fit to lead the Windows group” and said he “has demonstrated the ability to lead large teams that deliver great products. The work he and the team have done in getting ready to ship Windows 7 really defines how to develop and ship world-class software.”

Jon DeVaan will continue as senior vice president, reporting to Sinofsky. DeVaan managed the engineering team responsible for creating the core components of both Windows 7 and Windows Server 2008 R2.