Microsoft names Nadella as new server and tools president

Satya Nadella was named head of Microsoft's $15 billion server and tools business.

IDG News Service - Microsoft appointed its online services veteran, Satya Nadella, to head its $15 billion server and tools business, the company announced Wednesday.

Nadella will assume the role of president for that business, a post that Bob Muglia announced in January that he would be vacating.

In announcing the appointment, Microsoft highlighted Nadella's expertise in cloud computing, a skill the company sees as essential in finding its place in the emerging market for cloud computing services and tools. Nadella's "deep experience" in Microsoft's server business and online services will "help accelerate our momentum while setting the course" for its future cloud offerings, CEO Steve Ballmer said in a statement.

Nadella formerly led engineering efforts in the company's online services division. He led the technical efforts to launch Microsoft's Bing search engine, as well as updates to the Microsoft MSN consumer portal and the integration of the ad services between Yahoo and Bing.

Nadella, 43, had been with the online services division since 2007. Before that, he led Microsoft business solutions, which offers the company's Dynamics line of enterprise resource planning and customer relationship management products. He has been with Microsoft for 19 years.

The server and tools business division oversees the Windows Server operating system, along with related development and administration tools. The division will also oversee the company's cloud computing offerings, including the Windows Azure group. In his new role, Nadella will have to develop a technology road map and overall strategic vision for both the server tools software and enterprise cloud offerings, according to the company.

Muglia plans to leave Microsoft by mid-2011, after he helps Nadella get acquainted with the new job.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com