New Microsoft CEO Satya Nadella is planning big changes for his company.

The new CEO detailed in a memo to Microsoft employees that Microsoft needs to change its aim from being a “devices and services company” to “a mobile-first and cloud-first” organization, Nadella said: “More recently, we have described ourselves as a ‘devices and services’ company. While the devices and services description was helpful in starting our transformation, we now need to hone in on our unique strategy.”

Nadella’s announcement for Microsoft Office for iPad has been a huge step in the direction of a company that’s looking beyond traditional PCs for a way to make a stunning statement to the world at large that Microsoft is no longer behind the times, but with them and before them.

Nadella also challenged Microsoft in its new business strategy to concern itself with providing software solutions that make businesses even more efficient and successful than they’ve ever been. Nadella says that there’re 3 billion or so users in the world who are “dual users,” to use his terminology – and that these 3 billion users need cloud-based solutions more than hardware solutions. In other words, hardware is important, but the cloud is the next source of Microsoft’s rise.

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Nadella’s memo is focused on businesses as well as consumers, and it’s clear he wants to give Microsoft a rebranded image for the cloud-centric mobile era in which we find ourselves. Unfortunately, part of Nadella’s changes with Microsoft involve layoffs, now that the company has acquired Nokia’s mobile division. While this is an inevitable part of change, it is an unfortunate part of growth in the business world. Sometimes, it’s true that you’ve gotta change in order to grow.

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Nadella’s vision sounds hopeful and exciting for Microsoft, and it’s good to see someone rise to the Microsoft throne that doesn’t seem content on simply improving Windows’ hardware. Nadella understands the mobile world – which makes him a stellar CEO already.