Capossela will report to chief operating officer Kevin Turner, and will be responsible for Microsoft's marketing, advertising and corporate communications. His appointment follows the retirement of former senior vice president of central marketing Mich Mathews last month.
The 20-year Microsoft veteran had previously been senior vice president of Microsoft's Office unit and was responsible for marketing products including Microsoft Office, Sharepoint and Exchange.
Last month Microsoft awarded the lion's share of its $1 billion-plus annual advertising media budget to Publicis Groupe's Starcom unit in a blow to incumbent agency Universal McCann.