Microsoft Corp. has named company veteran Satya Nadella as its next chief executive, an appointment that comes as the software giant faces competition across all fronts of its business.
The company also said Bill Gates moves to a new role as technology adviser and John Thompson assumes role as chairman.
Mr. Nadella's naming to the post, effective immediately, makes him the third CEO since the Redmond, Wash., company was founded in 1975. He succeeds Steve Ballmer, who in August announced his plans to retire. Mr. Ballmer was originally handed the reins in 2000 when founder and college friend Bill Gates stepped aside after 25 years.
The appointment of Mr. Nadella, who leads the Microsoft division that makes technology to run corporate computer servers and other back-end technology, will be considered a safe choice. He has signaled a desire for continuity, telling directors that, as CEO, he hopes to lean on Mr. Gates, according to several people familiar with the matter. Little in Mr. Nadella's public history at Microsoft suggests he will break from the company's pattern as a fast follower, rather than a trend setter.
No doubt Microsoft's strategy of being a "fast follower" served it well throughout much of its history. I mean, Microsoft is a gigantic and gigantically profitable company. I'm just not sure, given how the company has been relegated to runner-up status in the crucial smartphone and tablet segments, if this is a growth strategy for the 21st century?
Or maybe that's the point? Maybe Nadella's selection signals that Microsoft's board is comfortable with the company aging into the modest growth/high margin phase of its life? Kinda like IBM eventually did?
