Microsoft this week named Amy Hood as its next Chief Financial Officer, replacing outgoing CFO Peter Klein. Hood formerly served as CFO of the Microsoft Business Division, which is responsible for Office, Microsoft’s largest business.

“Amy brings the right talents and experiences to the role as we continue to strengthen our focus on devices and services,” Microsoft CEO Steve Ballmer said in a prepared statement. “She has been an instrumental leader in the Microsoft Business Division, helping lead the transition to services with Office 365 and delivering strong financial and operational management throughout her time on the business.”

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Hood joined Microsoft in 2002 and most recently helped guide the firm’s successful acquisitions of Skype and Yammer. She previously served as chief of staff in the Server and Tools group, then moved to the Microsoft Business Division, where she first led strategy and business development.

Although Hood is assuming the CFO role immediately, Mr. Klein will stay on until the end of June, when Microsoft’s fiscal year ends, to aid in the transition. Hood says she’s excited to work with Klein during this time and meet with investors and shareholders. “Peter has built a world-class finance team,” Hood says, “and I am set up well to continue the company’s strong discipline around costs and focus on driving shareholder value.”

Rumors this week suggested that Tami Reller, one half of the team of women running the Windows division, was also in play for the CFO role. (The other half, Julie Larson-Green, seems to believe she’d be an excellent choice for CEO, if an appearance at a tech conference this week is any indication.) But Hood has a deeper background and most recently spearheaded the most successful Microsoft push into both devices and services during her tenure in the Microsoft Business Division.

Hood is the first woman to hold the CFO position at Microsoft. Perhaps more important, she is also now the highest-ranking woman at Microsoft. 

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