Microsoft on Tuesday picked Hyderabad-born Satya Nadella as its new chief executive officer, a job once held by Bill Gates. He takes over from Steve Ballmer. Nadella is only the third CEO in the company’s around four-decade history, following co-founder Bill Gates and Steve Ballmer. Gates said he was “very excited” about Nadella’s appointment. “Satya is a proven leader with hard-core engineering skills, business vision and the ability to bring people together,” Gates said in a statement.

“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,” he said.

Meanwhile, Gates stepped down as the company’s chairman and assumed the title of technology adviser.

In an internal memo to Microsoft employees reported by a website, Nadella said: “Today is a very humbling day for me. It is an incredible honor for me to lead and serve this great company of ours. While we have seen great success, we are hungry to do more.”

“This is a critical time for the industry and for Microsoft. Make no mistake, we are headed for greater places - as technology evolves and we evolve with and ahead of it. Our job is to ensure that Microsoft thrives in a mobile and cloud-first world,” he said.

“Our industry does not respect tradition. It only respects innovation,” he said. “Nadella, a veteran at Microsoft having served the company for 22 years, brings a relentless drive for innovation and a spirit of collaboration to his new role,” Microsoft said in a brief statement announcing his promotion. “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,” it added.

Nadella, 46, has been running Microsoft’s Enterprise and Cloud businesses which accounted for $20.3 billion in revenue and $8.2 billion in operating income during the company's last fiscal year.

Born in 1967, Nadella earned a bachelor’s degree in electrical engineering from Mangalore University, a master’s degree in computer science from the University of Wisconsin - Milwaukee and an MBA from the University of Chicago. His passions include poetry and cricket.