Microsoft's current CEO, Steve Ballmer, has admitted that the company needs a new CEO to move forward.

Ballmer joined Microsoft in 1980, becoming the company's thirtieth employee and the first business manager hired by Bill Gates. In 20 years of his career, Ballmer headed various departments within the organization and served as the CEO of Microsoft since 2000; however, in August this year, Ballmer announced that he will step down as the CEO within 12 months.

Now, Ballmer has admitted that he has served his time at the company and Microsoft needs a new CEO.

"Maybe I'm an emblem of an old era, and I have to move on. The best way for Microsoft to enter a new era is a new leader who will accelerate change," said Ballmer.

"As much as I love everything about what I'm doing," he said, "the best way for Microsoft to enter a new era is a new leader who will accelerate change."

Market observers also believe that Ballmer should step down as the CEO of the company.

"At this critical juncture, Wall Street wants new blood to bring fundamental change," says Brent Thill, a Microsoft analyst at UBS AG. "Steve was a phenomenal leader who racked up profits and market share in the commercial business, but the new CEO must innovate in areas Steve missed-phone, tablet, Internet services, even wearables."

During his 12-year tenure at Microsoft as CEO, the company's share lost around 50 percent of its value. Market observers also believe that Ballmer's failure to identify the industry's shift from PCs to portable devices is one of the reasons why the company has lost its market share to rivals like Apple and Google.

The company dived in deep waters with the announcement of its first tablet range, Surface RT and Surface Pro, in June 2012. The company released its first tablet in October 2012; however, the sales of the device disappointed Microsoft as it did not reach what the company had expected.

Ballmer is also criticized for the release of Windows 8 operating system, which failed to impress many customers.

Stephen Elop, ex-CEO of Nokia, who will join Microsoft as the Executive Vice President, and Ford Motor Co's CEO Alan Mulally are rumored to be frontrunners in the race to take over the mantle as the company's new CEO.