Nadella, who is on a hush-hush visit to the city, shared his vision during the address at IDC, the biggest campus of the software giant outside its headquarters at Redmond in the US.
A company official told IANS that the CEO visited the IDC campus located at Gachibowli in the morning.
Nadella later held a closed-door meeting with the top officials of the company at IDC, set up here in 1998.
There was no official word about Nadella's other engagements in the city. He is likely to leave for New Delhi later in the day and attend a few programmes in the national capital Tuesday before returning to the US.
For Hyderabad-born Nadella, this is his first visit to India after taking over as the CEO.
He arrived in the city Sunday and met Telangana Chief Minister K. Chandrasekhar Rao. The visit was kept a closely guarded secret and the media was not informed.
There was no official statement about the meeting. Even pictures were not taken during the meeting. Sources described the half-an-hour long meeting as a courtesy call.
Nadella reportedly spoke to Andhra Pradesh Chief Minister N. Chandrababu Naidu over phone. It was not clear if Microsoft CEO will meet Naidu, who is in Visakhapatnam to inaugurate a technology incubation centre.
An alumni of Hyderabad Public School (HPS), Nadella, 47, is son of former Indian Administrative Service (IAS) officer B.N. Yugandhar. His wife is the daughter of another retired IAS officer K.R. Venugopal.