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Inside Scoop - Why Microsoft named Satya Nadella

2014-02-04
I'm joined by Charlie Cooper executive editor of news calm thanks for joining us Charlie Microsoft has just named its brand new CEO to replace Steve Ballmer Satya Nadella tell us a little bit about the man well he's a up-and-comer he's a 22 year veteran of Microsoft a very technical and accomplished executive a bit of the Bill Gates more of the Bill Gates mold and Steve Ballmer and his appointment is being welcomed by the rank and file as well as by the outsiders who've been waiting after nearly six months of this ongoing endless search to replace Steve Ballmer let's break that down a little bit first of all 22-year veteran why do you think Microsoft looked inside versus looking outside of the company well we did both okay there were over the last several months instances they at one time attempted to to lure in the CEO of Ford Alan Mulally that went nowhere the CEO of Ericsson was also mentioned as a candidate but Microsoft is very much like the New York Yankees in 1927 they've got an excellent bench and such and Adella was one of the many people that they were looking at what would recommend him for this job is that he's an insider he knows where the skeletons are buried he doesn't need to be reintroduced to a culture corporate culture that is not familiar with people know what to expect and he knows where the problems are and presumably he can lead them to that Nirvana that they're hoping to arrive at and you mentioned that he's a technical guy a little closer to gates than Ballmer explained some of his technical background and why that is such an asset sure well he made his chops by doing a very accomplished job as the head of the server and tools business more recently helping to push them into the cloud where Microsoft now even though they got off to a uncertain start they now compete against Amazon that's a big business he understands that Microsoft can't keep doing what it had been doing up until recently with Windows being the franchise he needs to move the company in a way so that it can navigate successfully in this increasing world of mobility and he understands that very well moving forward where do you see Nadella moving this company as far as like products and you know consumer facing businesses well he has to make some decisions sooner rather than later primarily what to do with the Xbox business and what to do with being the search business several months ago you started to see this drumbeat from the investor community and from outside shareholders looking to increase shareholder value you're a publicly traded company there have been calls concentrate on what you do best which is the enterprise get rid of this consumer stuff they're probably any number of potential buyers I'm not sure that he's going to come in to break it up Bill Gates who had a big hand in this selection didn't want to choose a new CEO who was going to deconstruct his handicraft so remains to be seen and speaking of Bill Gates he's going to even play a bigger role with the company now that Satya is CEO is that correct one third of his time he says will be spent with Microsoft it's a good thing for Nadella because he won't Gates will no longer be on the board so Nadella will not be in this potentially uncomfortable position where they convene a board meeting and staring Amethi of at him from the other end is the legend himself but who better to bounce technical ideas off than the co-founder of the company so to bring back a baseball metaphor would you say that this is a homerun selection I would say right now it's a three bagger but TBD we'll see all right thank you so much executive editor news.com Charlie Cooper I'm Kara Tsuboi thanks for watching the inside scoop
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