Microsoft new CEO

Since Steve Ballmer announced his retirement in August 2013, everyone had been speculating who will be the new Chief Executive Officer.

On 4 February 2014, Microsoft announced that Satya Nadella, a 22-year veteran at the Redmond-based company, will take over as CEO effective immediately, making him just the third CEO in the company's history.

Who is Satya Nadella?Born in 1969 in Hyderabad, India, Satya Nadella finished his schooling at the Hyderabad Public School. Reminiscing about his early days, Nadella said that while growing up, playing cricket was his passion, and he played it competitively as a member of his school's team. "I think playing cricket taught me more about working in teams and leadership that has stayed with me throughout my career, " said Nadella. 

Knowing that he "always wanted to build things," Nadella joined the Manipal Institute of Technology to pursue a Bachelor of Engineering degree in Electronics and Communication. It turned out to be a prescient decision, with Nadella saying, "it was a great way for me to go discover what turned out to become a passion."

He, like so many of the engineers at the time, followed his passion and completed his engineering education abroad, with a Master of Science degree in Computer Science from the University of Wisconsin-Milwaukee. 

Speaking about his thirst for knowledge, Nadella said:

"I'm a learner. I think the thing that I realised is, what excites me is that I'm learning something. I can learn something about some area. I can learn something from people. I can learn something from doing things differently. And I admire that in other people, too. I fundamentally believe that if you are not learning new things ... you stop doing great and useful things. So family, curiosity and hunger for knowledge all define me."

Till date, the high-powered corporate executive often signs up for online courses, and he says it is because of "just crazy ambitions in the 15 minutes I have in the morning. You know, I'm trying to listen to a neuroscience class or something. I kind of ask myself, why are you doing it? But I love it."

Nadella started his career at Sun Microsystems, before moving to Microsoft in 1992, where he joined as a Program Manager in the Windows Developer Relations group. Nadella had begun pursuing a Master of Business Administration degree from the University of Chicago, when Microsoft's job offer came in.

He decided to finish his degree while also taking up the Microsoft job - it took him two-and-a-half years to complete it. Nadella described those hectic days, saying, "I used to fly to Chicago Friday nights, attend classes Saturdays and come back to Redmond to work during the week." 

Looking back, Nadella, in his letter to employees after being named CEO, spoke about his reasons for joining Microsoft, writing:

"I am here for the same reason I think most people join Microsoft - to change the world through technology that empowers people to do amazing things... Many companies aspire to change the world. But very few have all the elements required: talent, resources and perseverance. Microsoft has proven that it has all three in abundance."

Nadella quickly rose up the ranks at Microsoft, becoming the Senior Vice President of Research & Development for the Online Services division, the Vice President of the Microsoft Business Solutions group (MBS), and notably, the President of the $19 billion Microsoft Server and Tools Business. 

During his meteoric rise, the Indian-American also founded and led the 'Microsoft bCentral' small business online services group, was general manager for the company's Commerce Platforms group, and is considered responsible for spearheading the development of the Microsoft Commerce Server, Microsoft BizTalk Server, Microsoft Office Small Business, and Microsoft Dynamics ERP and CRM products. 

Nadella is also considered to have played a significant part in Microsoft's foray into advanced technologies like digital rights management (DRM) and interactive television (ITV).

As the head of the company's Server and Tools Business, Nadella spearheaded the 'transformation of the business and technology from client-server software to cloud infrastructure and services,' according to Microsoft. 

Speaking about his job at Microsoft, Nadella revealed what to him is the high-point of his work day:

"One of the things that perhaps excites me the most is when I come across something at work, whether it's somebody who's really done a great feature in software, come up with a fantastic idea in pricing or done a great customer program, or just an approach to their job that is innovative or brought teams together - and I just, wow, I marvel every day at how people can excel - and that's what really gets me going."

Who is Satya Nadella, outside of Microsoft?
In his letter to Microsoft employees after being named CEO, Nadell introduced himself, saying: 

"I am 46. I've been married for 22 years and we have 3 kids. And like anyone else, a lot of what I do and how I think has been shaped by my family and my overall life experiences. Many who know me say I am also defined by my curiosity and thirst for learning. I buy more books than I can finish. I sign up for more online courses than I can complete. I fundamentally believe that if you are not learning new things, you stop doing great and useful things. So family, curiosity and hunger for knowledge all define me. "

Further describing himself outside of office, Nadella says he finds relaxation by reading poetry in all forms by American and Indian poets:

"It's like code. You're trying to take something that can be described in many, many sentences and pages of prose, but you can convert it into a couple lines of poetry and you still get the essence, so it's that compression."

Nadella also said he enjoys watching Test cricket, "which is the longest form of any sport in the world. I love it. There's so many subplots in it, it's like reading a Russian novel."

Perfect for the top-spot at Redmond?With his experience, Nadella seems to fit the envisioned role for the new CEO of Microsoft perfectly, a company that is hoping to metamorphose from a software giant into a devices and services company, a move heralded by the acquisition of Nokia's mobile division, first announced in June 2012, and development of the Surface tablet range. John Thompson, who is chairing the search committee, had described the role at Ballmer's retirement announcement:

"The board is committed to the effective transformation of Microsoft to a successful devices and services company. As this work continues, we are focused on selecting a new CEO to work with the company's senior leadership team to chart the company's course and execute on it in a highly competitive industry."

Bill Gates had also outlined the requirements for the CEO role at Microsoft, saying:

"It's a complex role to fill - a lot of different skills, experience and capabilities that we need. It's a complex global business the new CEO will have to lead. The person has to have a lot of comfort in leading a highly technical organization and have an ability to work with our top technical talent to seize the opportunities."

 Nothing is impossible, says new Microsoft CEO
Satya Nadella the new Microsoft CEO. The Hyderabad-born introduced himself in an email sent to all Microsoft employees as someone 'defined by my curiosity and thirst for learning'. Nadella said he wants to 'change the world through technology that empowers people to do amazing things.'

His message to the employees included a rallying call, saying the folks at Microsoft are 'the only ones who can harness the power of software and deliver it through devices and services that truly empower every individual and every organization'.
Nadella urged his staff to 'believe in the impossible and remove the improbable', rounding off with 'Let's build on this foundation together'.
Here's the full text of the email:

From: Satya Nadella
To: All Employees
Date: Feb. 4, 2014
Subject: RE: Satya Nadella - Microsoft's New CEO

Today is a very humbling day for me. It reminds me of my very first day at Microsoft, 22 years ago. Like you, I had a choice about where to come to work. I came here because I believed Microsoft was the best company in the world. I saw then how clearly we empower people to do magical things with our creations and ultimately make the world a better place. I knew there was no better company to join if I wanted to make a difference. This is the very same inspiration that continues to drive me today.

It is an incredible honor for me to lead and serve this great company of ours. Steve and Bill have taken it from an idea to one of the greatest and most universally admired companies in the world. I've been fortunate to work closely with both Bill and Steve in my different roles at Microsoft, and as I step in as CEO, I've asked Bill to devote additional time to the company, focused on technology and products. I'm also looking forward to working with John Thompson as our new Chairman of the Board.

While we have seen great success, we are hungry to do more. Our industry does not respect tradition -- it only respects innovation. 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. 

As we start a new phase of our journey together, I wanted to share some background on myself and what inspires and motivates me. 

Who am I? 

I am 46. I've been married for 22 years and we have 3 kids. And like anyone else, a lot of what I do and how I think has been shaped by my family and my overall life experiences. Many who know me say I am also defined by my curiosity and thirst for learning. I buy more books than I can finish. I sign up for more online courses than I can complete. I fundamentally believe that if you are not learning new things, you stop doing great and useful things. So family, curiosity and hunger for knowledge all define me. 

Why am I here? 

I am here for the same reason I think most people join Microsoft -- to change the world through technology that empowers people to do amazing things. I know it can sound hyperbolic -- and yet it's true. We have done it, we're doing it today, and we are the team that will do it again. 

I believe over the next decade computing will become even more ubiquitous and intelligence will become ambient. The coevolution of software and new hardware form factors will intermediate and digitize -- many of the things we do and experience in business, life and our world. This will be made possible by an ever-growing network of connected devices, incredible computing capacity from the cloud, insights from big data, and intelligence from machine learning. 

This is a software-powered world. 

It will better connect us to our friends and families and help us see, express, and share our world in ways never before possible. It will enable businesses to engage customers in more meaningful ways. 

I am here because we have unparalleled capability to make an impact. 

Why are we here?

In our early history, our mission was about the PC on every desk and home, a goal we have mostly achieved in the developed world. Today we're focused on a broader range of devices. While the deal is not yet complete, we will welcome to our family Nokia devices and services and the new mobile capabilities they bring us. 

As we look forward, we must zero in on what Microsoft can uniquely contribute to the world. The opportunity ahead will require us to reimagine a lot of what we have done in the past for a mobile and cloud-first world, and do new things. 

We are the only ones who can harness the power of software and deliver it through devices and services that truly empower every individual and every organization. We are the only company with history and continued focus in building platforms and ecosystems that create broad opportunity. 

Qi Lu captured it well in a recent meeting when he said that Microsoft uniquely empowers people to "do more." This doesn't mean that we need to do more things, but that the work we do empowers the world to do more of what they care about -- get stuff done, have fun, communicate and accomplish great things. This is the core of who we are, and driving this core value in all that we do -- be it the cloud or device experiences -- is why we are here.

What do we do next?

To paraphrase a quote from Oscar Wilde -- we need to believe in the impossible and remove the improbable. 

This starts with clarity of purpose and sense of mission that will lead us to imagine the impossible and deliver it. We need to prioritize innovation that is centered on our core value of empowering users and organizations to "do more." We have picked a set of high-value activities as part of our One Microsoft strategy. And with every service and device launch going forward we need to bring more innovation to bear around these scenarios. 

Next, every one of us needs to do our best work, lead and help drive cultural change. We sometimes underestimate what we each can do to make things happen and overestimate what others need to do to move us forward. We must change this. 

Finally, I truly believe that each of us must find meaning in our work. The best work happens when you know that it's not just work, but something that will improve other people's lives. This is the opportunity that drives each of us at this company.

Many companies aspire to change the world. But very few have all the elements required: talent, resources, and perseverance. Microsoft has proven that it has all three in abundance. And as the new CEO, I can't ask for a better foundation. 

Let's build on this foundation together. 

Satya

Gates to be adviser

The selection of Nadella to replace Steven A. Ballmer, which was widely expected, was accompanied by news that Bill Gates, a company founder, would step down from his role as chairman and become a technology adviser to Nadella.
 
John W. Thompson, 64, a member of the Microsoft board who oversaw its search for a new chief executive, will become the company's chairman, replacing Gates.
 
"During this time of transformation, there is no better person to lead Microsoft than Satya Nadella," said Gates, who will remain a member of Microsoft's board. "Satya is a proven leader with hard-core engineering skills, business vision and the ability to bring people together."
 
In a statement, Nadella said, "Microsoft is one of those rare companies to have truly revolutionized the world through technology, and I couldn't be more honored to have been chosen to lead the company.

In Nadella, Microsoft's directors selected both a company insider and an engineer, suggesting that they viewed technical skill and intimacy with Microsoft's sprawling businesses as critical for its next leader. It has often been noted that Microsoft was more successful under the leadership of Gates, a programmer and its first chief executive, than it was under Ballmer, who had a background in sales. Ballmer, 57, said in August that he was stepping down.
 
Nadella, 46, from Hyderabad, India, will be only the third chief executive of Microsoft, an icon of U.S. business that has struggled for a position in big growth markets like mobile and Internet search. The company has correctly anticipated many of the biggest changes in technology - the rise of smartphones and tablet computers, to use two examples - but it has often fumbled the execution of products developed to capitalize on those changes.
 
It remains to be seen whether Nadella's technical background, along with the closer involvement of Gates in product decisions, will give the company an edge it lacked during the Ballmer years. Microsoft said in a statement that Gates will "devote more time to the company, supporting Nadella in shaping technology and product direction."
 
"I think he's the right person for the company right now," Frank Artale, a former Microsoft manager who works with Ignition Partners, a venture capital firm in the Seattle area, said of the selection of Nadella. "A strong technical leader is truly needed there."
 
Nadella is a contrast to Ballmer in other ways. Most recently the executive vice president of Microsoft's cloud and enterprise businesses, Nadella peppers his conversations and speeches with technical buzzwords that people outside the industry would most likely find impenetrable.

A whippet-thin runner, he is known as a cerebral, collaborative leader with a low-key style that differs from Ballmer's bombastic manner. While many executives within Microsoft tend to be polarizing figures, Nadella appears to be well liked in much of the company. Still, those who know Nadella, say he is not a pushover.
 
"Managers have to keep proving themselves every day," Artale said.
 
Nadella's star at Microsoft rose considerably in the past several years as he took charge of the company's cloud computing efforts, a business considered vital as more business customers choose to rent applications and other programs in far-off data centers rather than run software themselves.
 
For years, Microsoft did not pay enough attention to how the cloud - primarily through services offered by Amazon, its crosstown rival - was attracting the creativity of a new generation of developers. When he got control of the division that included Microsoft's cloud initiatives, Nadella changed that. He began meeting with startups to hear more about what Microsoft needed to do to become more responsive to their needs.

When you look at the most exciting things happening in tech, all the platform shifts happening and disruption - social, mobile, cloud - Microsoft has not even been part of the conversation until recently," said Brad Silverberg, a Seattle-area investor and a former Microsoft executive. "With Satya's leadership, Microsoft is doing interesting things in cloud."
 
As chief executive of the entire 100,000-person company, Nadella will have to grapple with a much broader set of challenges in markets in which he has little experience, like mobile devices. He will inherit a deal to acquire Nokia's mobile handset business, along with 33,000 employees, and a wide-ranging reorganization plan devised by Ballmer and still in progress.
 
In an interview in July, Nadella was supportive of the reorganization plan, which he predicted would allow Microsoft to adapt to changes in the market more quickly than in the past.
 
"It's not like our old structure didn't allow us to do some of this," he said. "The question is whether you can amplify."
 
When Nadella joined Microsoft in 1992, it was still a scrappy, relatively small software company led by Gates that was just beginning its greatest years of growth. His familiarity with the company's history and culture was said to have been an important factor in Gates' comfort with Nadella as chief executive, according to someone briefed on the search for a new leader who asked for anonymity because the process was private.

But in an interview in April, he said the most important factor in Microsoft's ability to remain a growing business in the future was its ability to become a player in what he called new paradigms in computing, like cloud computing.
 
"That is, you could say, the existential issue for us," Nadella said.
 
"I think that with any new paradigm there will always be a couple of new players who come at it," he continued. "But to me the thing that is perhaps more interesting and challenging, and gets me excited, is, hey, how can we renew ourselves?"
 
In his statement Tuesday, Nadella said: "The opportunity ahead for Microsoft is vast, but to seize it, we must focus clearly, move faster and continue to transform. A big part of my job is to accelerate our ability to bring innovative products to our customers more quickly."