The chairman of Microsoft Corporation has announced that within the next two years, he will gradually step back from his current role at the software giant.
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Gates will hand over the reins of Microsoft to Steve Ballmer. Source: Reuters |
At this moment, Gates will no longer serve as the chief software architect for Microsoft, and by July 2008, he will completely relinquish all of his management positions.
Gates’ decision comes at a time when Microsoft – the software company with an operating system running on 90% of the world’s computers – is struggling to find new sources of growth.
According to the new plan, Gates will transfer the technology leadership to Ray Ozzie, who joined Microsoft last year. Ray is considered the “heart” of the initiative to maintain Microsoft’s dominance by transforming desktop software into web services.
Gates stated that by July 2008, he would dedicate all his time to the charitable foundation he and his wife established – the Bill and Melinda Gates Foundation – to improve health and education worldwide. However, he also mentioned that he would work “part-time for Microsoft.”
No Disruptions
The world’s richest man, with an estimated net worth of $50 billion (according to Forbes in March), will remain the chairman of Microsoft and serve as a senior advisor for key development projects after the transition in 2008.
“Clearly, it was very difficult for me to make this decision,” Gates said at the press conference. “However, what you see today is not a retirement, but merely a rearrangement of my personal priorities.”
Analysts do not believe this news will significantly impact Microsoft’s operations, which employs over 60,000 people worldwide. Gates began reducing his responsibilities back in January 2000 when he handed over the CEO title to Steve Ballmer.
“Bill Gates may step back from the ‘daily’ responsibilities, but he will never, ever completely leave Microsoft,” said Professor Anthony Sabino of St. John’s University.
Microsoft’s stock price rose by 0.9% on the Nasdaq exchange, reaching $22.07. This is an interesting detail, considering that the software giant’s shares have dropped by up to 13% over the past year, due to investor skepticism about the company’s ability to find new growth markets.
Additionally, Microsoft is also striving to counter the bold encroachments of Google and Apple Computer. Furthermore, the company has been grappling with Windows Vista, which has seen multiple delays and the cutting of many highly anticipated features.
“I bet Gates is feeling exhausted from banging his head against the wall trying to figure out how to profit beyond the Windows operating system,” said Shannon Reid, director of Evergreen Strategic Fund.
The End of an Era
At the press conference, Steve Ballmer appeared confident, calm, and very enthusiastic. He stated that Microsoft aims to acquire another billion customers in the next decade.
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Gates announces the shocking decision at the press conference. Source: AP |
We are transforming to meet the demands of a modern world that is always hungry for new technology. We will maintain Gates’ philosophy of “Think big, do big” and will continue to grow even larger,” Ballmer stated.
Ozzie, the chosen successor to Gates as Microsoft’s chief software architect, is the creator of Lotus Notes, one of the first widely used corporate email programs, now owned by IBM.
Craig Mundie, another technical director, will assume a new title as Microsoft’s chief research and strategy officer.
According to AP, this move will mark the end of an era at Microsoft – since Gates founded the company in 1975 with childhood friend Paul Allen. Gates stated he wants to step back to spend more time on his philanthropic endeavors.
Previously, during his visit to Vietnam, Bill Gates also mentioned that “in the future, he will spend time thinking more about how to use his vast wealth for the most effective charitable work, creating the greatest impact on the world.”
Thien Y
