Microsoft Corporation named 22-year company veteran Satya Nadella as its next chief executive officer on Tuesday and said co-founder Bill Gates would step down as chairman and advise the new CEO on technology, marking an epochal change of control at the company that drove the PC revolution.
Nadella, a 46-year old born in India who led the creation of Microsoft's Internet-based, or "cloud" computing services, is only Microsoft's third CEO in 39 years, taking over from Steve Ballmer, who inherited the job from Gates in 2000.
The move ends a five-month search process at the Redmond, Washington-based company, triggered by the August announcement of Ballmer's decision to retire. That was longer than many investors had expected.
"It's a relief this process is over," said Daniel Ives, an analyst at FBR Capital Markets. "Many investors view it as the 'safe pick' as Mr. Nadella is a born-and-bred Redmond insider. But the uphill battle continues for Microsoft on its path to growth."
Microsoft's new chairman John Thompson, who led the search for a CEO, said the process went as planned.
"We aimed to complete the process within four to six months, and we met that goal," Thompson said in a video statement on Microsoft's website. "After reviewing all of the candidates, Satya was our first and unanimous choice."
Gates said Nadella's experience in cloud computing made him the right man to lead Microsoft, as the company struggles to find its feet in the new arena of mobile computing.
"Satya's got the right background to lead the company during this era," said Gates. "There's a challenge in mobile computing. There's an opportunity in the cloud."
Thompson did not mention other candidates, although sources close to the company have told Reuters that at one time Ford Motor Co CEO Alan Mulally was a leading contender.
As he relinquishes the chairman's title, Gates will stay on the board and assume a new role as technology adviser to Nadella.
"Satya's asked me to step up, substantially increasing the time that I spend at the company," Gates said in a video statement. "I'll have over a third of my time available to meet with product groups. It'll be fun to define this next round of products, working together."
Gates left day-to-day work at Microsoft in 2008 to