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Steve Ballmer, CEO of Microsoft, has decided to retire whitin the next 12 months – after more than a decade as the company’s CEO – its time to step down.

Microsoft will initiate the process of chosing Mr. Ballmer’s successor. In the meantime, Ballmer will continue as CEO and lead Microsoft through the next steps of its transformation.“There is never a perfect time for this type of transition, but now is the right time,” Ballmer said. “We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team. My original thoughts on timing would have had my retirement happen in the middle of our company’s transformation to a devices and services company. We need a CEO who will be here longer term for this new direction.”

The Board of Directors has appointed a special committee to direct the process, which includes founder and Chairman of the Board Bill Gates.

“As a member of the succession planning committee, I’ll work closely with the other members of the board to identify a great new CEO,” said Gates. “We’re fortunate to have Steve in his role until the new CEO assumes these duties.”

Whether Microsoft will look whitin or outside the company for Ballmer’s successor is unknow, some analyst talk about wanting to see Stephen Elop, CEO of Nokia, as the new leader of Microsoft – others think that we’ll see Kevin Turner, Microsoft’s current COO, stepping up.