Gates to Leave Microsoft

After three decades and a dream of placing a computer in every home and business Bill Gates announces his transition out of Microsoft. Over the next two years Gates will phase out his day to day role in his megacompany. Bill and Melinda Gates plan to focus more on their side project, the world's largest philanthropic organization.

The Bill and Melinda Gates Foundation is dedicated to health and education issues, especially in poor nations. A worthy cause indeed.

Gates stated he would not leave Microsoft completely but did note this as a major transitional time for the company.

"I always see myself as being the largest shareholder in Microsoft," Mr. Gates said.

Gates plans on maintaining his position as chairman while keeping his current holding on the company. He's not turning his back on Microsoft, he's moving on to greater projects while keeping his eye and his finger on Microsoft.

George F. Colony, chief executive of Forrester Research commented on Gates move by saying;

I think we'll look back at this day as the separation between two eras in software — the first being software in a box, and the second software distributed over the Internet for free and funded by advertising. The new era requires a complete re-examination of Microsoft's business model, which has been one of most profitable the world has ever seen.

The transition will begin immediately with Steven Ballamer remaining chief executive and Ray Ozzie taking over Gates' role as chief software architect.

Gates' decision comes at a time when, while revenues are topping in at $1 Billion per month, Wall Street is becoming "increasingly critical of Micrsoft's inability to make significant headway in new markets as diverse as video games, Internet television and Web advertsing," as noted by The New York Times.

Stocks feel with Gates' announcement, though time will tell if the change will take hold of Wall Street cynicism. While Gates transitions toward more phinanthropic issues the issues remain at Microsoft. According to the plan Gates seems ready to handle both on a fairly deep level over the next few years.