Meanwhile, Microsoft Founder Bill Gates announced today (04) that he was stepping down from his position as Microsoft Chairman. Gates will serve as a "technology advisor" for new consumer products.

Nadella, 46, is the executive vice president in charge of Microsoft's cloud and enterprise group, a fast-growing and lucrative division of the company. He's been a Microsoft employee for over 20 years and has worked as a VP in the company's business and online services divisions.

Microsoft began looking for a new CEO in August when Steve Ballmer announced he'd retire within a year or as soon as the board could find a replacement. Ballmer's decision to retire was a surprise, as he had previously said he didn't plan to do it until all his kids were in college, which wouldn't have been until 2017 at the earliest. Ballmer stepped down as CEO today and Nadella will begin his new job immediately.

Nadella  was born in Hyderabad, Andhra Pradesh, India  and ttended the historic Hyderabad Public School in Begumpet before receiving a Bachelor of Engineering in Electrical & Electronics degree from Manipal Institute of Technology, Manipal, Karnataka. After moving to the US, Nadella earned an MS in Computer Science from the University of Wisconsin–Milwaukee and an MBA from the University of Chicago Booth School of Business.