Is there a model that describes the different strategies that a company may use where the organisation is split into an engineering division and a professional services division?This is the sort of model that is followed by companies like Microsoft, whereby Engineering (or R&D) produce the core software, and professional services can then help clients implement that software.
what is the name of the model for the describing strategy between R&D and Professional Services
organization;engineering
I don't know that there is a specific name for that model, but it's a reasonably common approach.  In addition to Microsoft (your example), AT&T*, HP, IBM, and quite a few others follow the same approach.  Even Dell and others are starting to embrace this approach.The reasons should be fairly obvious.R&D activities need to be run in a different manner than a typical profit / loss model.  R&D is explicitly for activities that may never pan out.  The corporation may push the R&D towards more likely to be practical / applicable efforts, but there isn't a guarantee that a product will result.  As an example, IBM used to heavily fund basic research.  As of the mid-2000's, researchers were encouraged to focus on aspects that were more likely to be applicable to market needs.Services divisions are a typical example of a normal profit / loss model.  A Services division can measure utilization rates, profit margins (or losses), service backlogs, etc...   All of which are in alignment with selling a product (a service).  *I'm not certain about AT&T having a separate R&D division anymore, but they certainly used to. 