Mr Nadella was previously in charge of the firm's growing business of delivering software and services over the Internet. Company founder Bill Gates is also leaving the chairman role for and becomes its new technology adviser. The 46-year-old Mr Nadella replaces Steve Ballmer and becomes only the third boss in the business' 38-year history. Mr Nadella's appointment was widely expected. He was born in India and has been with the firm for 22 years. He previously worked in some of its fastest-growing and best profit areas, including servers and Office. Mr Gates' technology adviser role will be consulting on the board. Microsoft said the founder will devote more time to the company. In other management shake-ups, John Thomson was announced as the IT giant's new chairman. Shares in Microsoft were up 1.1% in pre-market trading. The company has seen its traditional PC-centric Windows and Office franchises eaten away and must fight against ground made by Apple and Google in mobile computing. Started in April 1975 by Mr Gates and Paul Allen , it created software that powered computers fabricated by others. Its initial MS-DOS system was replaced by Windows and its Office products in the late 1980s, driven by demand from private and business purchases. However it was late developing products in recent years and allowed Google to dominate online search and advertising. Meanwhile, it saw Apple's mobile devices such as iPhones and iPads grow. Android devices have also sucked potential sales away from Microsoft . The company's move into manufacturing its own devices has been hit with glitches, from the halted Kin phones to the as-yet unprofitable Surface tablet devices. Wall Street investors have also been pushing for overhead reductions through job cuts and better returns taken from the firm's large cash reserves.
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