Microsft Appoints Nadella As CEO; Gates As Technology Adviser

Tyler Durden's picture

With Allan Mullally disappointing analysts in need of a fresh story last month, Microsoft has now announced its new CEO. As rumored recently, Satya Nadella - a long-time Microsoftie since 1992 - will take on the role; but perhaps more interesting is Bill Gates leaving the position of Chair of the board to become a "technology adviser." Ballmer and Gates will remain on the board. 


The unofficial twitter announcement:

And the official one:

Bill Gates steps up to new role as Technology Advisor; John Thompson assumes role as Chairman of Board of Directors

Microsoft Corp. today announced that its Board of Directors has appointed Satya Nadella as Chief Executive Officer and member of the Board of Directors effective immediately. Nadella previously held the position of Executive Vice President of Microsoft's Cloud and Enterprise group.

"During this time of transformation, there is no better person to lead Microsoft than Satya Nadella," said Bill Gates, Microsoft's Founder and Member of the Board of Directors. "Satya is a proven leader with hard-core engineering skills, business vision and the ability to bring people together. His vision for how technology will be used and experienced around the world is exactly what Microsoft needs as the company enters its next chapter of expanded product innovation and growth."

Since joining the company in 1992, Nadella has spearheaded major strategy and technical shifts across the company's portfolio of products and services, most notably the company's move to the cloud and the development of one of the largest cloud infrastructures in the world supporting Bing, Xbox, Office and other services. During his tenure overseeing Microsoft's Server and Tools Business, the division outperformed the market and took share from competitors.  

"Microsoft is one of those rare companies to have truly revolutionized the world through technology, and I couldn't be more honored to have been chosen to lead the company," Nadella said. "The opportunity ahead for Microsoft is vast, but to seize it, we must focus clearly, move faster and continue to transform. A big part of my job is to accelerate our ability to bring innovative products to our customers more quickly."

"Having worked with him for more than 20 years, I know that Satya is the right leader at the right time for Microsoft," said Steve Ballmer, who announced on Aug. 23, 2013 that he would retire once a successor was named. "I've had the distinct privilege of working with the most talented employees and senior leadership team in the industry, and I know their passion and hunger for greatness will only grow stronger under Satya's leadership."

Microsoft also announced that Bill Gates, previously Chairman of the Board of Directors, will assume a new role on the Board as Founder and Technology Advisor, and will devote more time to the company, supporting Nadella in shaping technology and product direction. John Thompson, lead independent director for the Board of Directors, will assume the role of Chairman of the Board of Directors and remain an independent director on the Board.

"Satya is clearly the best person to lead Microsoft, and he has the unanimous support of our Board," Thompson said. "The Board took the thoughtful approach that our shareholders, customers, partners and employees expected and deserved."

With the addition of Nadella, Microsoft's Board of Directors consists of Ballmer; Dina Dublon, former Chief Financial Officer of JPMorgan Chase; Gates; Maria M. Klawe, President of Harvey Mudd College; Stephen J. Luczo, Chairman and Chief Executive Officer of Seagate Technology PLC; David F. Marquardt, General Partner at August Capital; Nadella; Charles H. Noski, former Vice Chairman of Bank of America Corp.; Dr. Helmut Panke, former Chairman of the Board of Management at BMW Bayerische Motoren Werke AG; and John W. Thompson, Chief Executive Officer of Virtual Instruments. Seven of the 10 board members are independent of Microsoft, which is consistent with the requirement in the company's governance guidelines that a substantial majority be independent.

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rtalcott's picture

who cares?


DOS is dead(?)

SoundMoney45's picture

At least he has an easy act to follow, in contrast to Tim Cook.  I did not see mobile mentioned much in the article. 

icanhasbailout's picture

looks like he won this year's annual Redmond "Steve Jobs look-alike" contest

eclectic syncretist's picture

Looks like an NSA cock-suckin asshole if I ever saw one.

rtalcott's picture

Very true...although Jobs picked a good time to check out because things were going to get difficult even for him.

superflex's picture

He looks like a child molester.  

Will probably require a web cam on every computer as part of his next Ultrabook specification.

The_Ungrateful_Yid's picture

Never trust anyone who looks like that, why can't people stop looking like freaks on purpose anymore.

Oh regional Indian's picture

Look at all these Indian's in key us posts (yes, MSFT CEO is still a very big deal). Not to forget India hatign Preet Bharara, who obviously hates his brown-ness.

Very interesting. Fishy too. Nadella is the son of a VERY influential (now retired) Burro-crat (can never speall that damn word).



aerojet's picture

It was the first thing that stood out--MSFT appoints a  foreigner as CEO because they know any new growth is not coming from the US.  Windows 8 is crap, Office jumped the shark completely, their phones suck and nobody wants them,  their tablets are worse.  Nobody except gamers needs Windows anymore for anything.  Bing sucks...programming .NET sucks (C# is an ok language but it is just a warmed over Java clone, and the peg has been moved much farther on by languages such as Groovy and Clojure).  I can go on and on.  MSFT is just not a leader in any segment except that companies still buy Outlook and Office for their productivity applications.  The margins on that are pretty thin, though.

I bought an XBox for my kids, but I had a lot of trouble getting it patched from XBox live and ended up having to download a patch onto a thumb drive and then sneaker net it over to the box.  Contrast that to the Wii which just worked 100% right out of the box.  I completely regret the XBox purchase, it was something my kids wanted, but it has not been used much since Christmas and we actually hooked the Wii back up to the tv.  I was totally put off by the patching experience as well as the XBox Live revenue model.  Really, I think MSFT can just go eat a bag of dicks.

Debt-Is-Not-Money's picture


"Windows 8 is crap,"

Windows 8 is not an OS.

It's a POS.

oak's picture

win xp forever and long life.

Freddie's picture

LOL!  Your kids are lucky because you sound entertaining. 

Anyone know is Playstation 3 or whatever is the latest PS is any good?  I saw the graphics in a store a year or two ago and it was amazing.  I heard they had overheating problems.   Yeah - Microshaft sucks.

jmc8888's picture

Graphically?  PS4 is the way to go, console wise, and it's cheaper.

PC's will still absolutely thrash either console though. 

But most people prefer consoles, and as such PS4 is the clear and easy winner so far. 

All the 3rd party games will run better on PS4 as opposed to the Xbox One.


The Xbox 360 was a masterpiece of shit in terms of quality.   Let me put it to you this way.  I had two red ring of death failures, the scratch disc problem, a hard drive that failed, and the last year or two the 2nd disc drive had problems reading discs. 

Luickly for gamers both consoles seem to be better made this time.  But we'll see.


The original Xbox 360 had over 50 percent failure rate within a year or two.  Yeah, complete POS.

A billion dollar charge so it could fix the Red Ring of Deaths they suffered from, and the scratched disks even led to a class action lawsuit.  Me personally, I lost about a dozen games to the disc scratching and no the warranty crap places push on you when you buy games wouldn't exchange them.  So fuck those warranties too.



angel_of_joy's picture

"Windows 8 is crap"

Well, that's an understatement if I ever saw one...

jmc8888's picture

They all will have their updates, it's the nature of the beast now.  Nowadays the developers target what they want in the OS and continually add more to it for the life of the unit.  Tweak this, add this, redo that, remove bugs, etc.  Just about every update adds something. But the Xbox One is basically a brick without the initial firmware update.  You could still play the PS4 out of the box.  But this won't be changing back.  You can just hope that when the next consoles are launched they are more ready out of the box like the PS4 was, rather then a complete brick like the Xbox One was.  Also it will take a year or more before a good suite of games is out for both systems.  You have the launch games, then a drought.  The next games of any note on either system don't come out until next month.  Infamous: Second Son on PS4 and Titanfall on 360/Xbox One/PC, as well as Metal Gear Solid Zero.  But your kids may not like those types of games.

In terms of gaming, which is fun, but otherwise useless....Xbox is $100 more, for a substandard version of most games.  The ESRAM is a major bottleneck, and raw GPU power is about 40-50 percent below the cheaper PS4.  Not to mention the other architectural advantages of the PS4 which in some ways is 400 percent better then the Xbox One.

I won't blame your kids, because well they're kids.  But the word is getting around, and had quite well by Novemeber, that the PS4 was the better choice.  Microsoft is fucked because the word around the campfire used to be in their pocket, and now it's biting them in the ass.

There really is little reason to pay more for less.  This console generation isn't last console generation.  Xbox label doesn't mean you are getting quality.   The Xbox One has 'potential', but that's because of 'Kinect', and at some point they need to actually realize potential or it turns into a waste.   Well it's been like five years for Kinect so that clock has long been ticking.  Few want it for gaming, and you don't need it for snap or voice control.  Even Nintendo's motion control gaming is mostly dead.   Hell Microsoft can't even showcase something coming out a year or two from now using Kinect. 

Now with the Xbox One, they can't fit the framebuffer in the ESRAM, it's too small.  Having ESRAM at all adds more complexity in making the game.  32mb's should have been 128mb's.  At least 64, which still would have had some major problems.  But 32 mb's, can't even really hold a decent 1080p framebuffer. As time goes on and quality increases, it can barely hold a 600p framebuffer, which is sub-hd. 

1920x1080x16/1024/1024=~31.64 mb's

Multiply Resolution WxHxQuality= total space needed in bytes for the framebuffer, then take that and divide by 1024 twice to convert bytes to MB's.  Remember they need to fit the framebuffer AND still have leftover mb's to boost bandwidth.

All used up for a crap 16 bytes per pixel quality *last gen quality*, and nothing left to boost the bandwidth of the 68 gb/s DDR3.

Just wait when it's 40 or 48 bytes per pixel quality.  Switch out 16 with 20, 24, 28, 32, 36, 40, 48 and do the calculations, and see how badly Microsoft fucked up...and no tiled resources won't overcome this. 

1920x1080x48/1024/1024 = 94.92 mb's

1024x600 (sub-hd) x 48/1024/1024=28.125 mb's

As you can see even a sub-hd resolution will struggle with the size of the ESRAM, when quality is near the end of the generation cycle.

This is going to make all deferred rendering dynamic lighting game engines, which basically IS the point of next-gen game engines, very difficult to run on Xbox One compared to PS4.  As these multiplatform games stop dropping support for the 360/PS3, this is when the power and architecture gap between the two consoles to really take off.   Now this doesn't mean the Xbox One is a generation behind, or anything like that.  More like closer to a third to a half a generation difference.  But that is pretty massive, and an epic fail for a competitor which launched before you and cost $100 less.

People can point to Forza, but that isn't an open world game. It's not a deferred rendered game.  It's basically a last gen game running in a higher resolution.

Oh and right now they are reserving 10 percent of the GPU for SNAP and Kinect.  Given how far Microsoft is behind they've decided to reduce this to 2 percent, the question then becomes, what are they giving up to get that 8 percent back, which won't really do anything to change the lack of power issue.

Having less power along with the ESRAM issues is why you're seeing games that run at a higher resolution, have more graphical elements, and still run at a higher framerate on the PS4, the cheaper product.  That's like saying the cheaper car has more power, better acceleration, and better gas mileage.  Oh and most people think the Xbox One looks like a 1980's VCR. So it's also aesthetically a big ugly box.

If you count PC games in the mix, the Xbox One will deliver the 3rd best version of games, and this will never change.

Microsoft fucked up big time with the Xbox One, and without all the reversals in asinine policies, dubbed 180's, it would have been a lot worse. (online only, needed Kinect plugged in, game trading and used game buying restrictions, etc)

Basically the only reason to buy a Xbox One is to play first party exclusive games, which Microsoft mostly stopped supporting when they pulled support making real games for gimmicky and horribly working Kinect 1 games on the Xbox 360.  They are starting some projects like at Black Tusk Studios who took over for Epic for the next Gears of War game, and of course 343 will be making a Halo...but both those franchises are now in the hands of a different developer then what made them what they are, and neither of these games will be out, rumored, until 2015 (Halo) and 2016 (Gears). 

There will be a rehash of Halo 2 that is supposed to be out this year though, but that's just a remake.  Also of note is that Gears of War was a trilogy, and then they made a fourth one and it wasn't well received, sales were massively down all the way to the 1 million range.  So who knows how much pull it will have in two years.

No doubt there are a couple of others, like Quantum Break, but is this a game that will become popular like a Halo, CoD, Battlefield, etc? Most likely not, it's not a FPS.  Remedy Entertainment's website who is making it calls it a "the genre defining experience that blurs the line between games and television."  Will that work?  Who knows.  Maybe it finds a niche, but lets not get ahead of ourselves and put this game on the same level as proven franchises, which are what sell consoles.

But since 90 percent or more of gaming is multiplatform games, people care about how those games perform, and they perform like absolute crap on the Xbox One.  There's massive differences and it's only going to increase as time goes on. 

Take Call of Duty:Ghosts for instance.  You have a massive 720p vs 1080p resolution difference between the two versions.  Even a recent patch that coincided with a DLC map pack has had users reporting that framerate has dropped.   Meanwhile the PS4 version at 1080p is actually running over 60 FPS but vsync locked to 60.  Go down the list of all the major 3rd party games, and they all have some major graphical differences between the PS4 version and the Xbox One version. The only exceptions are the small box, last-gen style games.  Like the unimpressive Madden series, which still looks like it's stuck in 2003.  Games set in a really small box, making it easier to render.  Or last gen forward rendered games.  Or all of the above.

Xbox One has Kinect, the NSA spy device for which Microsoft claims is amazing, except mostly what it's used for is audio controls which can actually be done with any microphone, and other then that it has little purpose.  Oh it has purposes and things it does, but they are so minor, and mostly convenience based because people can't be bothered with picking up their wireless controller and hitting a button.  That saying 'Xbox On' and it recognizing you with the camera is more convenient.  Yeah, by a sliver...and such a nothing benefit.  Another benefit is that you can switch controllers with someone sitting next to you and the xbox can recognize this...yes..because I'm too stupid to know which controller I'm using and want to play switcheroo with the controller like some five year old, and on top of that it's important ONLY because I want to be a psycho for all the worthless achievements who is sad that somehow I might be registering achievements for someone else because I would then be holding their controller, but since Kinect is there it can make sure I still only achieve achievements that are connected to my account. 

You know achievements, which boost your ego supposedly because you did something important, except, it's some crap in a video game that didn't actually achieve anything, and in reality isn't important.  That's why you need Kinect so if your five year old switches controller with your eight year old, they can still keep track of who did what, achievement wise.  Because you have to be able to prove you had fun to someone else who obviously cares and will use social pressure on you if you haven't completed some achievement or not, or gasp won't believe you beat the last boss in a game unless you can prove it with an achievement.  Play games for fun, because you sure in the hell aren't achieving anything...and no, no one cares to look at your achievements.

But beyond this where are the kinect games?  They package it in the box, and force you to buy it, yet where is the software?  When are people going to realize that Kinect is a niche product.  We've had Kinect for about 5 years now, and this is the 2nd version, yet all there has been is dancing games, that most people don't care about.  Where's Milo?  The thing everyone actually wanted, was never made, and Milo will never see the light of day, and was most likely simulated anyways. All they have right now are minor gimmicks, and they have to pull power away from an underpowered system just to run these gimmicks in a game.  Oh and most of those are also on the PS4 version of games, which you can choose to buy the camera or not.

HDMI in so they can track your viewing habits, and yes all the ad participation (nuads) they want to make you a guinea pig about.  Not to mention all the crap like during the presidential elections they can do the CNN tracker thing where morons sit there and push buttons indicating which liar they believe.  Oh and if you aren't in the U.S., the HDMI in replacing your cable box probably won't work.  Select countries only please.

Again the only way the Xbox One makes sense, is for exclusive games.  That's it. If you like the CoD, Battlefields, AssCreed, GTA, etc, etc...well don't buy an Xbox One for those games.   Only for Halo, Gears, Forza (not the one already out, that's last gen in a higher resolution), and Titanfall...which of course is also available on the 360 and PC, and the developers want to bring the sequel on the PS4.  They don't have much else.  Kinect Sports was supposed to be there at launch, and yet it is still delayed.

If Nadella wants Xbox to succeed they need to buy/open half a dozen gaming studios or more and start having them pump out exclusive games...the problem is, none of these games would be ready until 2016.  The only way to compete with a console that outclasses you in every way gaming wise, is to make games that the other can't access. Also they need to massively drop the price to below what the PS4 is at.  That is, if they want the brand to not get left in the dust.

This also would only catch them up to what Sony is doing, as they already have the studios, and those studios are known to put out a bunch of games.  Not a bunch of stuff on paper, but actual studios., with actual track records, that are hired, and many already working on games.  Gamers know Sony will support the PS4 with games.  They also know Xbox One isn't that way.  Nadella needs to change this.   The best way to do this is to open studios, but they can also buy them or moneyhat a game, but this also pisses off gamers who see it as buying exclusivity and taking options away from gamers.  But is still an option for a dying brand.

Sony has the best console 3rd party version.  It has its suite of 1st party devs to pump out exclusive games.  It has its lower price.  It also hasn't recently pissed everyone off.  Nadella has a lot of work to do.  He needs 1st party exclusives, and a lower price.   Offer a Kinect-less version.  This puppy needs to be $349 ASAP, and even then I don't like its chances because its still inferior.  It needs games, but good games take 2-3 years to make. 

All of this will cost money they didn't expect to spend, but after having a bunch of morons design the console, there are no good answers.  So the question is.  Do they let the Xbox brand sink?  Do they try to become competitive with Sony? Do they sell it off?

Also get a leash on your PR morons who talk out their ass and spout bullshit so obviously wrong it makes them look worse then Baghdad Bob. 

...and I didn't even touch Windows 8.  Hint:  Give the option of a true Windows 7 like interface AND Metro, while fully supporting and progressing both.  Give people options, don't limit them.

All the pretending Microsoft has done over the last year or two needs to stop, or else, why did they change CEO's at all?

RKDS's picture

Microsoft is doomed.  In less than 10 years, it'll be all Indian and half of them will be related to each other.  Small businesses had better stockpile old hardware/software and/or learn to program for themselves, because nothing, and I mean nothing, coming out of Microsoft by then is going to be worth bothering with.

johnconnor's picture

this is very likely to happen, I have been working on the IT industry for years and always the first thing a typical Indian with hiring power does is to bring another relative/best buddy from his/her homeland. I have seen entire groups and department where every single member is an Indian national, not a single US person or foreign from another country. They all come as H1B and in 4-6 years they became greencard holders and in another 3-5 years they will be US citizens. I have even seen bringing fresh college graduates from there, 25 somethings, to start a position where they had absolutely no experience whatsover, you could have hired any US person with a technical background for the same job. Also, many times I have seen people complaning to HR (and I have complained too) about that but they always look to the other side.

1100-TACTICAL-12's picture

I belive that ol'boy would jerk a rod.....

The Dunce's picture

I care.  The boys at microsoft are a bunch of bastards.  They have their feet on the neck of global copyright laws.  Assholes.

Kirk2NCC1701's picture

And they are better at Info-Trolling better than almost anyone:  They target prospects purely for picking their heads and profiling competition.  Get them into a phone interview, start mining for ideas, mental models and tech/product development.

What differentiates them from most, is that they actually put the info into a sort of dbase.  It's a great way for what may otherwise be mediocre middle-managers to "leverage"** from peers in the tech world.

** A nice, sanitized weasel-word for: borrow, plagiarize, steal other people's ideas, know-how, etc.  Hey, come to think of it, it reminds me of a group/tribe of people who are just like that.  Damn Kling-ons!

flapdoodle's picture

Don't worry, DOS is very much alive!

Its beats on, hidden deep within the recesses of Windows 8 - everything else that you see has just been added on top of DOS as an app!

The.Harmless.Who's picture

Calling all 7-11 employees.... 


one's gone missing!


(sorry couldn't resist)


Dewey Cheatum Howe's picture

Someone needs to oversee the cloud products backdoor NSA and government integration into all Microsoft products. Bill is in da club now so he would be the perfect choice. Microsoft cloud is the vehicle for mass data collection in decentralized databases for the government to access at will these days.

Follow the money and government contracts....

ebworthen's picture

Good, the NSA computers can choke on my poetry.

I'd bet the NSA is more interested in Google docs and cell phone traffic but...

Oh regional Indian's picture

I think Larry Elison and Oracle are equal partners in that game.


ebworthen's picture

Mr. Satya,

Please, give us an Operating System not a swipe marketing tool for the dull.

Stoploss's picture

Bill, either fix your fucking software, or get the fuck out...............

Keyser's picture

10 more years of dead money in MSFT, that's what it means. 

mofreedom's picture

I'm sure Nintendo would be a good buy for the Super Mario / Donkey Kong brand.

ebworthen's picture

That's actually not a bad idea.

They could make it the kid/family fun brand that meshes with and funnels into XBOX.

mofreedom's picture

If the Japanese wanted the gut-rot Jim Beam I suppose selling Nintendo would require many a hari kari (sp?).

ReactionToClosedMinds's picture

Hey ....don't trash my favorite bourbon! 

I don't often drink bourbon, but when I do, i drink Jim Beam ..... (once/twice a year)

jmc8888's picture

As of a couple years ago Nintendo was sitting on $50 billion in cash.

Them being bought out isn't going to happen.

StychoKiller's picture

Hmm, is that in Yen or actual FRNs?

MilwaukeeMark's picture

Unable to bully and control the desktop experience, MS is proving to be a ninety-eight pound weaking-nerd. Sort of like back in high school when the president of our chess team always vanquished his opponents until, once back on the playground, he got the shit kicked out of him.

MilwaukeeMark's picture

In hindsight, I suppose when you choose to name your kid Felix (Wasserman) you are kind of setting up the outcome.

gwar5's picture

Our chess team was so tough....  for just a wrong word, they'd reprogram your pocket calculator when you weren't looking.



ebworthen's picture

I was kind of hoping Alan Mulally would get the job so my car would ask me if I was sure I wanted to start it in the morning and my operating sytem at work would rust out around the wheel wells.

Colonel Klink's picture

If your car was designed by MS, in order to start it you have to grab the door handle, antenna, and turn the key at the same time.

superflex's picture

If you want to use a key to start your car, you'd have to touch swipe through three layers of gay looking metrosexual buttons to access the "Use Key" option.

The good thing is before you can start your car, you'll be aware of updates to your twitter and facebook status.


Straw Dog's picture

If your car was designed by MS, you would have to press the "Start" button to shut it off.

StychoKiller's picture

"At a recent computer expo (COMDEX), Bill Gates reportedly compared the
computer industry with the auto industry and stated :

'.. if GM had kept up with the technology like the computer industry has,
we would all be driving $25.00 cars that got 1,000 miles to the gallon.'

In response to Bill's comments, General Motors issued a press release stating:

If GM had developed technology like Microsoft; we would all be driving cars with the following characteristics:

1. For no reason whatsoever, your car would crash twice a day.

2. Every time they repainted the lines in the road, you would have to buy a new car.

3. Occasionally your car would die on the freeway for no reason.
You would have to pull over to the side of the road, close all of the windows,
shut off the car, restart it, and reopen the windows before you could continue.
For some reason you would simply accept this.

4. Occasionally, executing a maneuver such as a left turn would cause your car to shut down and refuse to restart, in which case you would have to reinstall the engine.

5. Only one person at a time could use the car unless you bought "CarNT", but then you would have to buy more seats.

6. Macintosh would make a car that was powered by the sun, was reliable, five times as fast and twice as easy to drive-but would only run on five percent of the roads.

7. The oil, water temperature, and alternator warning lights would all be replaced
by a single "General Protection Fault" warning light.

8. New seats would force everyone to have the same sized butt.

9. The airbag system would ask, "Are you sure?" before deploying.

10. Occasionally, for no reason whatsoever, your car would lock you out and refuse to let you in until you simultaneously lifted the door handle, turned the key and grabbed hold of the radio antenna.

11. GM would require all car buyers to also purchase a deluxe set of Rand McNally road maps (now a GM subsidiary), even though they neither need nor want them. Attempting to delete this option would immediately cause the car's performance to diminish by 50% or more. Moreover, GM would become a target for investigation by the Justice Dept.

12. Every time GM introduced a new car, car buyers would have to learn to drive all over again because none of the controls would operate in the same manner as the old car.

13. You'd have to press the "Start" button to turn the engine off.

gwar5's picture

Meet the new CEOperative for the NSA.  Gates needs time off to euthanize the Third World to clear up Lebensraum for the elites.


Doode's picture

Chicago Booth represent!

youngman's picture

I hope they fix Windows 8.....I have had it for two months now...still cant figure it out..and why they think it is better...

ZeroPoint's picture

Do yourself a favor and wipe it for Linux or Debian. Kubuntu is especially good for having the desktop any which way you would like it.