Nadella crowned as Microsoft chief

Bill Gates steps down as chairman to focus on technology development

Microsoft has finally crowned Satya Nadella as its new chief executive, ending a six-month search to replace outgoing boss Steve Ballmer.

Nadella, who used to lead Microsoft's cloud and enterprise division, takes over from Ballmer and joins the board of directors immediately. He joined the firm in 1992.

The software giant also announced that founder Bill Gates will be replaced as chairman by CEO-search leader and director John Thompson. Gates will become more hands on in his new role as technology advisor, the vendor said.

During the CEO search, speculation about Gates' and Ballmer's continued influence surfaced, with some claiming a new boss will find it hard to make their mark on the firm with the duo still in the frame. Microsoft said today that as part of his tech role, Gates will be devoted to "supporting Nadella in shaping technology and product direction".

Gates said there was no better person to lead Microsoft in the future.

"Satya is a proven leader with hardcore engineering skills, business vision and the ability to bring people together," he said.

"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. During this time of transformation, there is no better person to lead Microsoft than Satya Nadella."

Steve Ballmer, who led Microsoft since 2000, will retire from the day-to-day running of the company but will remain on the board of directors.

VIDEO: Bill Gates welcomes Satya Nadella as Microsoft chief executive.