Bill Gates Announces Resignation

Bill Gates let his emotions get the better of him as he tearfully announced his pending resignation in a press conference on Thursday afternoon. As of July 2008, Gates will transition from his day-to-day role as Chief Software Architect and Chairman of Microsoft to just being the Chairman. Chief Technical Officer Ray Ozzie will immediately assume the title of Chief Software Architect and begin working side by side with Gates on all technical architecture and product oversight responsibilities while Chief Technical Officer Craig Mundie will immediately take the new title of Chief Research and Strategy Officer.

In July, 2008, Gates will switch to working part-time for Microsoft in his new role, and will work full-time for the health-and-education foundation he founded with his wife, Melinda.

"I don't know what it's going to feel like not to come in every day and work 10 hours," Gates said. "I have a sense of what it's like to do foundation work because I've squeezed that in part time, but I think it will probably take me a while, just like six years ago when I switched off from CEO. It might take me a year and a half to get used to my role. That's a little bit of an unknown now and because I've got two years, I don't even really want to go there now, because I'll figure it out when I get there."

Microsoft CEO Steve Ballmer was present to field questions and discuss the company's two-year transition process with Gates.

"I feel a lot of emotion, but I also feel that this company is ready and orderly to make a new transition without missing a single beat," Ballmer said. "Over the years we have talked about how to build leadership and we've been preparing the company for this for many years. Bill may reduce his time here, but his imprint on the company will never diminish. We will continue his tradition of thinking big and aiming even bigger."

In September, Ballmer organized the company into three divisions under presidents Jim Allchin, Kevin Johnson, Robbie Bach, and Jeff Raikes, who were given much greater responsibility for product development and strategy decisions within their respective businesses. In August 2005, the company appointed Kevin Turner as Chief Operating Officer.

Gates committed to working "as hard as ever" during the two-year transition period, despite a seven-week vacation that he has planned this summer, which includes a trip to Africa and plans to "enjoy the Seattle summer."

When asked whether Melinda Gates was involved in the decision, Gates said that her input was a factor but ultimately the decision was his.

"Melinda and I have talked for a couple of weeks and she's been saying, 'Have you mentioned it to Steve yet?' and I said, 'No, it wasn't easy to bring up today,'" Gates joked. "But she's involved in the foundation. She participated in the thinking, but the date has to do with the strength of the team here at Microsoft and the sense of what my time at the foundation would hope to do."

What's it all mean? Read Bill Gates' Exit: What You Need to Know for News, Commentary and More.