Everyone has been eagerly waiting the news and today it has finally come...

Microsoft has named Satya Nadella CEO. Nadella, 46, replaces Steve Ballmer as Microsoft's CEO and becomes only the third leader in the software company's 38-year history. Company founder Bill Gates is also stepping down as Chairman for a new role as technology adviser.  Ballmer plans to leave the company within 12 months.

Nadella has been with Microsoft for 22 years and has been an executive in some of the company's fastest-growing and most profitable businesses, including its Office and server and tools business.  It is hoped he can expand Microsoft's successful foray into the world of cloud computing. Major competitors in cloud computing include Google (GOOG), IBM, Amazon (AMZN), and Salesforce.com (CRM).

Microsoft's cloud computing offering, Azure, and its push to have consumers buy Office software as a $100-a-year Office 365 subscription are seen as the biggest drivers of Microsoft's growth in the near future. Both businesses saw customers more than double in the last three months of the year.

Microsoft shares edged up in pre-market trading.