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Steve Ballmer steps down from Microsoft board

Yoni Heisler | Aug. 20, 2014
Now that he's the bonafide owner of the NBA's Los Angeles Clippers, Steve Ballmer today announced that he was formally stepping down from his role as a Microsoft board member.

Now that he's the bonafide owner of the NBA's Los Angeles Clippers, Steve Ballmer today announced that he was formally stepping down from his role as a Microsoft board member.

Ballmer of course passed the CEO torch over to Satya Nadella a few months ago after board members lost faith in Ballmer's ability to right a Microsoft ship that, while more than capable of making profits, was increasingly losing relevance in a tech environment somewhat dominated by Apple and Google.

In an open letter to Nadella published on Microsoft's website, Ballmer wrote the following regarding his departure from Microsoft's board.

Dear Satya,

As I approach the six month mark of my retirement and your appointment as CEO, I have been reflecting on my life, my ongoing ownership of Microsoft stock, and my involvement with the company. I have reached some conclusions and wanted to share them with you. I know August is the key month during which the company starts to prepare the proxy statement for the next shareholders' meeting, and so these thoughts are probably timely for that too.

First, Microsoft has been my life's work and I am proud of that and excited by what I see in front of the company and this leadership team. There are challenges ahead but the opportunities are even larger. No company in the world has the mix of software skills, cloud skills, and hardware skills we have assembled. We draw talent as well as any company in the world. We have the profitability to invest in long-term opportunities and still deliver superior shorter term performance. You're off to a bold and exciting start.

Microsoft will need to be bold and make big bets to succeed in this new environment. Writing great software is a tremendous accomplishment and selling software has been a fabulous business. In the mobile-first, cloud-first world, software development is a key skill, but success requires moving to monetization through enterprise subscriptions, hardware gross margins, and advertising revenues. Making that change while also managing the existing software business well requires a boldness and fearlessness that I believe the management team has. Our board must also support and encourage that fearlessness for shareholders to get the best performance from Microsoft. You must drive that.

I had not spent any time really contemplating my post-Microsoft life until my last day with the company. In the six months since leaving, I have become very busy. I see a combination of the Clippers, civic contribution, teaching and study taking a lot of time. I have confidence in our approach of mobile-first, cloud-first, and in our primary innovation emphasis on platforms and productivity and the building of capability in devices and services as core business drivers. I hold more Microsoft shares than anyone other than index funds and love the mix of profits, investments and dividends returned in our stock. I expect to continue holding that position for the foreseeable future.

 

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