The Good and Bad of Satya Nadella As Microsoft's New CEO

It's official: Microsoft  (NASDAQ: MSFT  ) has named Satya Nadella as its new CEO, ending its search for new leadership. A 22-year Microsoft veteran, Nadella has led the company's important cloud and enterprise segment to riches. That gives him crucial experience in managing Microsoft's most profitable business. Last quarter, the commercial segment drove nearly 2.5 times as much operating income as the devices and consumer segment.

On the flip side, some investors may be disappointed that Microsoft didn't tap an external candidate who may have pursued dramatic strategic shifts. There had been speculation that some candidates would have been interested in killing Bing or selling off the Xbox business to focus on Microsoft's core strengths. Additionally, Bill Gates will devote more time to Microsoft's strategic direction, which is a curse and a blessing at the same time.

In this segment of Tech Teardown, Erin Kennedy discusses Microsoft's new CEO with Evan Niu, CFA, our tech and telecom bureau chief.

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  • Report this Comment On February 04, 2014, at 11:20 PM, techy46 wrote:

    Staya needs to figure how to use Microsoft's enterprise ecosystem successes to monetize them into cloud based mobile consumer successes. He should start by turning Microsoft's IE Do Not Track feature into a full blown anti-adware dashboard that allows IE users to easily block all ads and cookies and other privacy invasions. Turn Google's major source of revenue into a major source of embarrassment.

  • Report this Comment On February 05, 2014, at 5:16 AM, Tuxster12345 wrote:

    Microsoft should have gone outside to find a new CEO. An outsider would bring fresh blood and new thinking to Microsoft's corporate environment.

    However, I don't think Bill Gates was ever going to let this happen, as I'm sure he still sees Microsoft as "his" company. In the same way that Jerry Yang wanted and tried to keep Yahoo! "his" company.

    Microsoft's board should have done what I think is best for the shareholders and the company.

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