"Further, you will see investments in two new or combined functions: Data and Applied Science and Software Engineering," Nadella said.

He added that each engineering group will have Data and Applied Science resources that will focus on measurable outcomes for the products and predictive analysis of market trends, which will allow Microsoft to innovate more effectively.

"Software Engineering will evolve so that information can travel more quickly, with fewer breakpoints between the envisioning of a product or service and a quality delivery to customers," Hyderabad-born Nadella said.

He further said that in order to deliver the experiences its customers need for the mobile-first and cloud-first world, Microsoft will modernize its engineering processes to be "customer-obsessed, data-driven, speed-oriented and quality-focused."

"We will be more effective in predicting and understanding what our customers need and more nimble in adjusting to information we get from the market. You can expect to have fewer processes... You will see fewer people get involved in decisions and more emphasis on accountability," he added.

He added: "Over the next six months you will see new investments in our workforce, such as enhanced training and development and more opportunities to test new ideas and incubate new projects."

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