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Nadella hands Microsoft money machine off to new commercial CEO so he can visioneer the future

(2025/10/01)


Microsoft boss Satya Nadella told staff on Wednesday that he's appointing Judson Althoff to a new role as CEO of the company's commercial business, so that the big boss can concentrate on Redmond's future plans and strategy.

Althoff left Oracle nearly 13 years ago to join Microsoft as its executive VP and chief commercial officer. He set up the Microsoft Customer and Partner Solutions (MCAPS) division to handle enterprise and partner sales, which Nadella called the company's "most important growth engine."

He will now oversee all of Microsoft's commercial operations, including sales, marketing, and operations. Nadella will keep his focus on engineering, including AI strategy, future technologies, and the datacenters that will support them.

[1]

However, Nadella will still be keeping his finger in commercial operations to an extent. COO Carolina Dybeck Happe will still report to him, but Microsoft's CMO Takeshi Numoto will now report directly to Althoff.

[2]

[3]

"This isn’t just evolution, it’s reinvention, for each of us professionally and for Microsoft," Nadella [4]told staff in an email that the company also posted to its web site. "History shows that general purpose technologies like AI drive step changes in productivity and GDP growth, and we have a unique opportunity to help our customers and the world realize this promise."

[5]

Judson Althoff, no wonder he's smiling - Click to enlarge

The new role puts Althoff in a very powerful position at Microsoft, which is trying to balance its massive expenditures in fields like AI while cutting costs ( [6]and staff ) elsewhere. Althoff has a proven record in driving sales and the expanded role will give him control of all the elements involved in Redmond's commercial operations.

Oddly, Microsoft made the announcement while Althoff was off campus. He's in Canada at a Microsoft AI Tour conference, part of Redmond's nearly year-long roadshow to convince businesses around the world why the software behemoth is the right bet for machine learning in the future.

[7]Microsoft CEO Nadella's compensation drops... to $48M

[8]Forget vibe coding - Microsoft wants to make vibe working the new hotness

[9]Windows 11 25H2 is mostly 24H2 with bits bolted on or ripped out

[10]Hundreds of orgs urge Microsoft: don't kill off free Windows 10 updates

"Microsoft is at our best when we marry our technology portfolio with customer needs today, while preparing them for the future. Every day, we aspire to get even better at tightening the feedback loop across product strategy, sales, support, marketing, and operations to deliver more value," Althoff said in a LinkedIn [11]post .

"This is why I am excited and humbled to take on a new role as CEO of Microsoft’s commercial business, with new team members and new responsibilities. Together we will continue to strengthen our mission in the era of AI: to empower every person and every organization on the planet to achieve more."

What's unspoken is that it also puts him in a good position to take over from Nadella, should he decide to step down at any point. Nadella has been in the role for 11 years and has given no hints of plans to step down but this move mirrors Larry Ellison's [12]transition to CTO — retaining some control while delegating day-to-day operations.

[13]

Nadella said he is now "laser focused on our highest ambition technical work—across our datacenter buildout, systems architecture, AI science, and product innovation." He'll have the time on his hands to do it. ®

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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aN2kdzXlKv9ZXuKUE_XWlQAAA4s&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aN2kdzXlKv9ZXuKUE_XWlQAAA4s&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aN2kdzXlKv9ZXuKUE_XWlQAAA4s&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[4] https://blogs.microsoft.com/blog/2025/10/01/accelerating-our-commercial-growth/

[5] https://regmedia.co.uk/2025/10/01/judson_althoff.jpg

[6] https://www.theregister.com/2025/07/25/microsoft_ceo_job_cuts/

[7] https://www.theregister.com/2023/10/20/microsoft_ceo_nadellas_compensation_drops/

[8] https://www.theregister.com/2025/09/29/microsoft_vibe_working_office/

[9] https://www.theregister.com/2025/10/01/windows_11_25h2/

[10] https://www.theregister.com/2025/10/01/hundreds_businesses_urge_microsoft_not_end_win10_support/

[11] https://www.linkedin.com/feed/update/urn:li:activity:7379173323026624512/

[12] https://www.theregister.com/2014/09/18/larry_ellison_steps_down/

[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aN2kdzXlKv9ZXuKUE_XWlQAAA4s&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[14] https://whitepapers.theregister.com/



Visualisation or Delusion

The man with a spanner

I am pleased that Mr Nadella will now have time to "Visioneer" the future - presumably like engineering, but staring into the near future.

Anyway it will clearly be better than his predecessor who only managed to envision the future, while Old Bill and his mate just visulised the possibilities.

! ! FFS ! !

Anonymous Coward

Vision is not a word that springs to mind with Nadella.

ChoHag

I guess Satya doesn't want to be holding the ball when his AI investments come home to roost.

But who wouldn't want the kudos that comes with having visioneered so well?

williamyf

The difference between a CEO and a COO is that the CEO will lean more heavily into strategy and external relations, while the COO will lean more heavily into tactics and, well, operations.

What I read into this strange "CEO of a division but not fully CEO, instead of COO" is either the workload has become too much for Nadella alone, or, they are preparing some sort of succesion plan.

As for the AI investments of Microsoft/Nadella "coming to roost" what I can say is that their direct competitors also jumped head first in this fad, so, once the fad fades, comparatively speaking, microsoft will not be worse off compared to the competition. What could REALLY hurt microsoft is that AI ends up NOT being a fad, and Micrsoft NOT being one of the top companies in the space.

Finally, Nadella does not need technical chops to steer the technical side of the bussiness. What he will do is decide which tech initiatives will NOT go forward, which will do, and how the resources will be allocated among the ones that do go. The guy so far has a decent track record on making those types of decitions.

Beta Windows - or Alpha?

Jurassic.Hermit

What will this mean for the beta of Windows / 365 versions that we receive as production version, without adequate if any UAT? Strip out even more costs and become alpha versions?

Practice is the best of all instructors.
-- Publilius