After months of rumors, Microsoft on Tuesday officially named Satya Nadella as its next CEO, the company's third in its almost 40-year history.
Founder Bill Gates, meanwhile, will step down as chairman of Microsoft's board of directors to serve as technology advisor. He"will devote more time to the company, supporting Nadella in shaping technology and product direction," Redmond said. John Thompson, lead independent director for the board of directors, will take over Gates's role as chairman.
"During this time of transformation, there is no better person to lead Microsoft than Satya Nadella," Gates said in a statement. "Satya is a proven leader with hardcore engineering skills, business vision and the ability to bring people together. His vision for how technology will be used and experienced around the world is exactly what Microsoft needs as the company enters its next chapter of expanded product innovation and growth."
Nadella assumes the CEO post effective immediately. He has been with Microsoft for 22 years, most recently as executive vice president of Microsoft's cloud and enterprise group.
Nadella takes over for Steve Ballmer, who announced plans to step down as CEO in August. In a memo to staff, Ballmer said he is "pumped for the future of Microsoft."
"Satya is a proven leader. He's got strong technical skills and great business insights," Ballmer continued. "He has a remarkable ability to see what's going on in the market, to sense opportunity, and to really understand how we come together at Microsoft to execute against those opportunities in a collaborative way. I have worked closely with Satya for many years and I have seen these skills many times. He is not alone, though. Our Senior Leadership Team has never been stronger, and together this group will drive us forward."
In his own memo, Nadella acknowledged the challenges ahead. "Our industry does not respect tradition — it only respects innovation," he wrote. "This is a critical time for the industry and for Microsoft. Make no mistake, we are headed for greater places — as technology evolves and we evolve with and ahead of it. Our job is to ensure that Microsoft thrives in a mobile and cloud-first world."
Going forward, he said, Microsoft must "reimagine a lot of what we have done in the past for a mobile and cloud-first world, and do new things."
Though Microsoft is a software giant, it has struggled in the consumer space. Windows Phone is slowly gaining speed, but is far behind Apple and Android. And Redmond irked its hardware partners with the release of its own tablet, the Surface. Windows 8, which "reimagined" the operating system, has also lagged behind Windows 7; recent data shows that the aging Windows XP actually gained market share last month at the expense of Windows 8.
For more, check out 5 Things to Know About Satya Nadella and Microsoft Needs a Sorcerer, Not the Server Guy.
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