Tuesday, February 4, 2014

Satya Nadella, Microsoft's new CEO.


I had a couple of other posts ready to go when the news broke, and instantly took precedence over every other tech-related news story of the year so far. Microsoft has officially named Satya Nadella the new CEO of Microsoft, replacing Steve Ballmer who announced he was leaving the position last year. You can read Satya Nadella's email to employees here, and Steve Ballmer's email to employees here. Microsoft also moved board member and search chair John Thompson to the position of chairman.

Let me say right off the bat I am cautiously optimistic. An electrical engineer, he has been at the company a long time, 22 years to be exact, and has overseen Microsoft's attempts to compete at the consumer level including the acquisition and continued development of Skype, as well as the development of Bing, and Microsoft's cloud services, all of which I'm a big fan of. He also has significant experience in the enterprise sector of the company which is what drives almost two-thirds of Microsoft's revenue. He is well liked and respected within the company and the industry and has the support of many people both inside and outside Microsoft.

From Microsoft's Facebook page, a historic day at the company.
From left to right: Chairman John W. Thompson, CEO Satya Nadella, Bill Gates, Steve Ballmer
On the other hand, some of those very same issues are what prevent me from being too overly-enthusiastic. Both Bill Gates and Steve Jobs, as well as Google as a corporate entity, were and are well known for being very, very cutthroat when needed. This isn't an industry where being a nice, amiable person will get your company very far. He has already been pegged as a 'safe' choice for Microsoft, and that could be a good thing, or it could turn out to be exactly what the company doesn't need right now as it continues to struggle in the consumer devices and software sector.

He has said that it is important to bring new and innovative products and ideas to the market at a much faster pace and that is what we need to hear; in fact he states that the tech industry "does not respect tradition, it only respects innovation." Whether he is actually able to follow through with that is something that only time will tell. If he can, that will be good for the company. If not, if his influence and vision meets any roadblocks, that could further hinder the company just as it seem to be getting its products and services in line.

Satya Nadella's first interview as CEO of Microsoft

The reason I mention that is because none other than Bill Gates himself is increasing his role in the company after having been away for quite some time, and Steve Ballmer will still have significant presence. How that will impact the new CEO's ability to actually do his job in the way he sees fit is unclear, but their influence will undoubtedly be hanging thick in the air. That isn't necessarily a bad thing, by the way, they built Microsoft into what it is, but it is something that might need to be kept in check, or may very well need to be embraced. A much more serious concern is the under-the-radar news that Mason Morfit, Head of ValuAct Holdings, will be coming on as a member of the board of Microsoft and wants to seriously shake things up, including the selling off of Microsoft's hardware such as the Xbox and untying the software from the hardware. That makes me very, very worried.

Even so, I have high hopes. For all the grief it gets, Microsoft is a good, strong company. Their products are well designed, and although they've certainly had missteps, *no* company is innocent of that (Remember the Pippin? Or Newton? or Buzz?). I think this refresh of the executive ranks is needed, as long as the new CEO is able to lead and steer the company forward.


5 comments:

  1. I would say, great choice! I'm glad they chose someone from within that already knows the company's culture than some celebrity CEO that could come and screw everything up. I hope he can do with all the company what he did with the cloud, and bring back Microsoft to its glory days. I hope Gates went to his friend Buffett for some advice, Buffett's way of choosing companies he invests in is from their management prespective not just stock value, and he also focuses in longevity. If they picked Nadella because of these reasons, it's time to get excited all over again. You might not be the only person with a Microsoft phone in class in a couple of years after all professor!

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    1. I am a Microsoft guy. They are almost everything my career is around. I know the benefits and uses they really provide. Go Microsoft.

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  2. This is very encouraging. I like this hiring. Although I don't know him personally, every thing I have read about him seems to be just the shot in the arm Microsoft needs. I truly Microsoft has a lot of great products. I don't think it is marketed or used effectively. Microsoft needs someone to push that to the forefront. I believe he will help that effort.

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  3. This seems to be a great decision being that he was a front line employee before. I believe this is very critical in a company like Microsoft because he knows the company's culture which is critical for an executive leader. Although he may be seen as "too nice" he will learn when to be rigorous. Good leaders have to adapt quickly to their position because they are held accountable for everything they do . I see this as a good opportunity for Microsoft to have a new ideas with someone who is really experienced in this arena.

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  4. I think it is great that they chose someone that has been with their company for such a long time as the new CEO. We all work hard to escalate in life and that is exactly what he did. As far as being a "safe" choice, it could be a good thing, even more knowing that such a big company will evaluate every little detail of the candidates they have for such position. Maybe they are just trying to stick with someone that has the same ideals and vision as the CEOs before him, that would be a good and safe choice. A fresh mind brings fresh ideas and that is what society wants, hopefully he will deliver as they expect.

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