“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,” Gates said.
Formerly Executive Vice President of the Cloud and Enterprise Group at the software giant, Nadella was leading the development of one of the largest cloud infrastructures in the world.
Gates will assume a new role as Technology Advisor and devote more time to the direction of the company's products and technology.
In August last year, while launching its search for a new CEO, its then chief executive Steve Ballmer had said he will step down in the next 12 months.
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