Satya Nadella named new Microsoft CEO as Bill Gates steps down

US computer giant Microsoft named Satya Nadella as its next chief executive, tapping an insider steeped in business technology to speed turnaround at a software maker that helped usher in the personal-computing age only to be left behind as the world shifted towards the web and mobile devices.

Nadella would replace Steve Ballmer, effective immediately after a five-month search, Microsoft said in a statement yesterday. Bill Gates, the company's first chief executive, will step aside as chairman and devote more time to product development, while remaining on the board and running his philanthropic foundation. John Thompson, the board member who led the search for chief executive, becomes chairman.

The new chief executive, who was born in India and joined Microsoft in 1992, takes over at a critical juncture.

Consumers and businesses are shunning personal computers in favour of handheld devices made by rivals, sapping demand for Microsoft's flagship products.

Besides playing catch-up to the likes of Apple and Google, Nadella will be tasked with completing strategy changes begun by Ballmer last year. These include the US$7.2 billion integration of Nokia's handset unit and turning Microsoft into a provider of services and hardware.

"He's really the complete package - he has incredible intellect but he also combines that with a deep curiosity and willingness to learn," said Doug Burgum, who sold business software developer Great Plains to Microsoft and oversaw Nadella while at the Washington-based company.