It was bound to happen someday, while there is never a perfect time for this type of transition according to Microsoft CEO Steve Ballmer, he has reached the decision to retire from Microsoft within 12 months. This will allow the company to complete the process of choosing the next CEO to captain Microsoft, but he will continue as CEO till his successor is found.

A special committee will direct the process of finding a replacement for Ballmer, but no time table has been announced. The succession planning committee (CEO search committee) will be chaired by John Thompson and it will include Microsoft Chairman of the Board Bill Gates.

Ballmer has commented that the new CEO will be over seeing the company’s transformation to a devices and services company. He also believes that the company needs a CEO who will be here long term for this new direction.