After the exit of Microsoft CEO Steve Ballmer, the company had been embattled to look for the next candidate. Bloomberg had said in its analysis that Microsoft's next CEO would need to make a huge decision. Microsoft could continue with Ballmer's plan in transforming the company's focus to broad-based devices and services. Microsoft could also stick to what the company does best - business software.
Microsoft had failed to make money in the past years. The sales of its Surface table had casted doubt on Ballmer's grand design. Ballmer's plan was to shift focus on offering hardware and cloud-based services.
Investors had called on the software giant to redirect the cash it had been spending. This was because the company only lost money on peripheral projects. Investors also called for Microsoft to focus on its strength including Windows, Office and franchise servers.
Activist investor ValueAct Capital Management LP was said to have influenced Ballmer's decision to retire. The hedge fund firm had earlier sided with the investors' more conservative approach regarding Microsoft's direction and spending habits.
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