8.30am update

Bill Gates steps down as Microsoft chief executive

  • theguardian.com,

Microsoft founder Bill Gates is to step down as chief executive of the software giant, promoting Microsoft president and close friend Steve Ballmer to the post.

Mr Gates, who will remain chairman and take a new title of chief software architect, said he was giving up the CEO title so he could return "to what I love most, focusing on technologies for the future."

Microsoft has made Mr Gates the wealthiest private individual in the world, with a fortune estimated at over $80bn.

Yesterday's announcement does not necessarily mean he is giving up any power in the company he co-founded in 1975 with Paul Allen.

Mr Gates said he planned to dedicate his time to fashioning and promoting the "next generation" of Microsoft's flagship product, the Windows 2000 operating system.

He said he particularly wants to develop software services that will be hosted on the internet and made part of future versions of Windows.


"Steve's promotion will allow me to dedicate myself full time to my passion - building great software and strategizing on the future and nurturing and collaborating with the core team helping Steve run the company," Mr Gates said.

Mr Ballmer will retain his title of president. He also will be given a seat on Microsoft's board of directors.

"I'm certainly honoured and very, very excited about the opportunity," Mr Ballmer said.

Mr Ballmer, like Mr Gates, has already staked out a position against breaking up the company, a possible remedy which may be sought by the federal government and 19 states that are suing Microsoft over alleged antitrust violations.

"I think it would be absolutely reckless and irresponsible for anyone to try to break up this company," Mr Ballmer said. "I think it would be unprecedented and I think it would be the single greatest disservice that anybody could do to consumers in this country... I just think it would be reckless beyond belief."

Mr Ballmer, 43, was appointed president of Microsoft in July 1998, giving him direct responsibility for improving the performance of all of the company's divisions, as well as customer satisfaction.

He grew up in Detroit, where his father, a Swiss immigrant, worked for Ford Motors. At Harvard, he lived just down the hall from Mr Gates and the two became friends.

After Mr Gates hired Mr Ballmer, the two reportedly had some rocky times. In the spring of 1985, as Microsoft's deadline to produce Windows slipped behind, Mr Gates reportedly threatened to fire Mr Ballmer if Windows wasn't on the shelves by the end of the year, though few people believe he was serious. Windows was ready by November.

Along with Mr Ballmer's promotion, Mr Gates announced that Microsoft would develop the "next generation windows services", which will power new products and services over the internet.

Microsoft wants to use the internet to transmit data to any device, including computers, cell phones, handheld computers and home electronics.

The new internet-based Windows services will be developed over the next two or three years, with developers getting the first detailed view of Microsoft's strategy this spring, Gates said.

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