In a memo to employees, the CEO of the computing behemoth of Redmond, Washington, said tech respects innovation rather than tradition, and as such Microsoft needs to adapt to a mobile and cloud computing world to see "how we can once again change the world."
"We live in a mobile-first and cloud-first world. Computing is ubiquitous and experiences span devices and exhibit ambient intelligence," said Nadella. "Our passion is to enable people to thrive in this mobile-first and cloud-first world."
The company, which reports earnings on July 22, has seen its stock rise more than 15 percent since Nadella took from Steve Ballmer on Feb. 4, outpacing the tech-heavy Nasdaq during the period.
—By CNBC staff