Satya Nadella Is the New Microsoft CEO

NEW YORK ( TheStreet) -- Microsoft  ( MSFT) has announced the appointment of Satya Nadella as its next CEO effective immediately. Nadella replaces outgoing CEO Steve Ballmer and joins the Microsoft board.

Microsoft shares were advancing more than 1% on the news to $36.87 in early New York trading.

WATCH: Microsoft Names Satya Nadella as CEO, Gates to be Technology Advisor

Nadella had been the executive vice president of Microsoft's Cloud and Enterprise group responsible for building and running the company's computing platforms.

According to the company's special  Web site announcement:

"As Satya Nadella becomes the third CEO of Microsoft, he brings a relentless drive for innovation and a spirit of collaboration to his new role. He joined Microsoft 22 years ago because he saw how clearly Microsoft empowers people to do magical things and ultimately make the world a better place. Many companies, he says, "aspire to change the world. But very few have all the elements required: talent, resources and perseverance. Microsoft has proven that it has all three in abundance."

Microsoft also disclosed that Bill Gates, previously chairman of the board, 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, the board's lead independent director, will assume the chairman role. 

Gates said: "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."

Nadella was born in 1967. He received a Bachelor's degree in Engineering and Electronics in India as well as a Master's in Computer Science from the University of Wisconsin and an MBA from the University of Chicago.

He worked for Sun Microsystems prior to joining Microsoft in 1992. He is married and has three children.

-- Written by Gary Krakow in New York.

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