CNET News Video: Microsoft names Satya Nadella as CEO
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CNET News Video: Microsoft names Satya Nadella as CEO

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Microsoft didn't have to look far in its six-month search for a new CEO. The company has tapped Satya Nadella to replace Steve Ballmer. Nadella, who has been at Microsoft for 22 years, will become the third CEO in Microsoft's four-decade-long history. As CNET's Kara Tsuboi reports, Microsoft's new chief faces some serious challenges.

-This is the new face of Microsoft, sporting a hoody and hipster glasses. But Satya Nadella is far from a new face around the office. After 22 years at the Washington-based company, Nadella is being promoted from the head of the Cloud and Enterprise group to Chief Executive Officer. -He really is an accomplished technologist and he knows the corporate culture and he's gonna be able to mold all of that together as he finally figures out where Microsoft needs to move. -Nadella will inherit a company trying to figure out its place in a post-PC world. While Microsoft continues to profit from Windows and Office software, the company has struggled to compete in mobile. Windows phones have a small fraction of the market compared to Apple and Android. -And for us and what's going to define Microsoft going forward is a mobile first, cloud first world. -Microsoft founder Bill Gates will take on a different role of the company as a technology adviser. -I'll have over third of my time available to meet with product groups and it'll be fun to define this next round of products working together. -And that list of products may change as Nadella takes over. -He's under pressure now from outsiders to carve up the company to get rid of the consumer businesses primarily being in the Xbox business. -Steve Ballmer steps down Tuesday and Nadella's role as CEO is effective immediately. In San Francisco, I'm Kara Tsuboi, CNET.com for CBS News.
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