Satya Nadella: Worldwide Partner Conference 2013 Keynote

ANNOUNCER: Ladies and gentlemen, please welcome Microsoft’s president, Server & Tools business, Satya Nadella. (Applause.)

SATYA NADELLA: Good morning. It’s a real pleasure and a privilege to have a chance to talk about our collective enterprise opportunity this morning. We’re at this very unique point in time where we are leading this next big shift in enterprise computing platforms from client-server to devices and services.

If you talk to enterprise customers today, they will talk about how innovation, differentiation, return on their IT investment and agility are so top of mind. That means our opportunity to grab share, have a much more mainstream impact with the enterprise customers, is right there. There’s going to be over $2 trillion of IT spend that’s going to be up for grabs as this shift happens, and we’re leading that.

And you see this in the momentum that we have today. If you look at some of the numbers in terms of Fortune 500 adoption of Windows Azure, over 50 percent of the customers are already using Windows Azure.

There are 3.2 million organizations using Office 365 as we speak. In fact, since all of them use Azure AD, that means we even have a bootstrap for Azure and its tenants.

If you look at the total amount of growth we have in some of our server products, the fact that we run our cloud and our public cloud using the same software that we provide to others to build their own cloud infrastructure is making our high-end server products very, very competitive, and you see that in System Center and Hyper-V growth, you see that in the growth of Lync, you see that in the growth of SQL Server. So that reinforcing cycle is well on its play.

Now, of course, all of this is not possible without the great partners in the room. If you look at the total number of partners who are already signed up for our various programs around the cloud, we have over 150K partners who are signed up for cloud programs. Twenty-two thousand of them have, in fact, sold a public cloud solution, Office 365, Azure, CRM Online, in the last 12 months.

Now, the interesting fact is given that displacement of IT dollars and the fact that we have the opportunity to grab share in that, you see it in the partners who are orienting their business around the cloud. They’re getting topline growth that is over 2x. They’re seeing profitability growth which is close to 1.5x. So that’s the business model also working as you build new competencies.

Now, we can build on that momentum and truly capture and lead this next generation of modern business on the cloud. That means we need to build out solutions that speak to the here and now needs that enterprise customers have, the needs that customers have around building a more dynamic business with social enterprise, being able to deliver more people-centric IT solutions, to be able to drive big data and insight solutions; app dev, completely modernizing the application development within an enterprise, both in terms of Web, mobile, as well as cloud services; and lastly, to be able to provide the cloud infrastructure that powers all of this application innovation.

So those are the dimensions of enterprise computing that all of us collectively are working on, and it’s our job to be able to do great work together to bring the solutions to the enterprise customer.

So the rest of the presentation is going to be able to walk through each one of these solution areas and talk about the innovation that we can take to our customers together.

So let’s start with dynamic business. Now, what do we mean by a dynamic business? It starts by putting a user at the center, and really empowering them with great devices. You saw a lot of devices in the previous presentation. In fact, it’s expected that an average worker, 50 percent of the workers inside an enterprise will have as many as three devices. So getting those modern devices that you saw in the previous session with all the enterprise extensibility to the end users within the enterprise is the first step.

Then you want to empower them with the best productivity software in Office and even third-party pieces that come together to be able to empower users to be able to do their work.

Collaboration is something that you build right in where everyone is able to collaborate within their organization, as well as outside of the organization.

Social enterprise takes collaboration to the next level where you take every interaction you have with another user inside your organization or outside or any piece of content that represents your work, it could be a document but you really want to enrich it with all of these social interactions: likes, follows, comments, news feeds.

And then at the end you really want to rethink and reimagine the business processes and business process applications to fit in with this new style of work.

So that’s what we mean by dynamic business and that’s what we are building into the core of Office 365, we’re building into the core of Dynamics so that they provide as SaaS applications this ability that we just described.

Now, of course, there is another piece to it, which is as you empower the end users with the devices they want to use, the applications they want to use, you also want to have IT control. This dichotomy of IT control and end-user empowerment is something that we believe is absolutely bridgeable, and we are bridging it with this approach to IT called people-centric IT wherein you can allow the users to have the devices they like, they can bring their own devices if they so choose to. Corporate-issued devices we still think will be a significant majority because of all the work that you saw even in the previous session, but we also acknowledge that there will be people who bring their own device.

You also want to be able to bring your own cloud. In other words, you want to be able to sign up for SaaS applications out there and then bring them into the enterprise.

You want to be able to really enable all of that with IT control, and the way to do that is to start with having a very robust identity management solution. Especially with AD and Azure AD we have that.

So that means you can then control access to all of your enterprise data, all of your enterprise applications. You can have rich device management even in the bring your own case where you are able to attest to the attributes of the device through which this access is being initiated and make sure you provide the right type of access.

You also want to be able to protect information as it leaves and goes into the device. And if it’s high-value business data, you want to be able to rights protect it.

So with the combination of Active Directory, as well as System Center and Intune, you really have put control back, without compromising on the end-user experience, and that people-centric IT approach we think is very unique.

We have lots of customers who are already well on their way to adopting new practices around Office 365, Dynamics and people-centric IT.

If you think about Office 365, I already said that there’s 3.2 million businesses that are using it, huge brand names, Japan Airlines, Toyota, Kraft Foods.

But the one I wanted to talk very quickly about is the British Ballet Corporation where Penman IT, which is one of their partners, did a fantastic job of taking this small business and enabling them to take advantage of Office 365 where in the small business they not only have employees but they also have a wide membership. So the adoption of Office 365 has completely changed both the cost as well as their ability to collaborate and communicate with their members.

Revlon, which is a big brand name in fashion, was able to take Dynamics and completely change the way they did custom application development. They have many, many subsidiaries. They were using lots of custom apps in all of these different subsidiaries. They were able to bring all of that back into one deployment of an ERP solution and have that one single pane to be able to manage the enterprise resources.

Toyota was able to use Windows Intune to manage the devices they had inside of the dealerships. So they have these devices in the dealerships that provide services to customers. Since they were unmanaged devices they were able to use Intune to make sure that the latest and greatest software was always available, and their customers inside of the dealers got the best service.

So those are just a few examples of where partners and customers were able to build solutions around some of our technologies and bring to life this dynamic business, as well as people-centric IT practices.

But to show you some of this in action I wanted to invite up onstage Julia White. Julia?

JULIA WHITE: Thanks, Satya.

Now, to enable the dynamic business that Satya talked about, the technology must enable amazing user experiences, but also the business controls that companies need to be successful. Nobody does that better than Microsoft. I’m going to show you how we collectively, Microsoft and all of our partners here today, create that dynamic business. And I’m going to show you that across Office 365, Dynamics CRM Online Windows Intune, and System Center Configuration Manager, and Azure Active Directory.

So here I am on my Windows 8 PC. And I’m going to start in Outlook. And you can see the new Outlook UI is beautiful, touch-enabled. It looks great across my devices. But it also has the business power I need to be synched.

Now a key scenario with e-mail is accidentally sending information outside the company. It’s so easy to do with e-mail. Now with the new Outlook and Office 365, information protection and rights management is built right in. So let me show you what that looks like. I’m going to send an e-mail, and I’m going to send it to Bob, and I’m going to send him some information that he’s asked for.

Now you see right away I got this mail tip letting me know that Bob is actually outside my company. Maybe I auto-filled the wrong Bob. I get a little notification before I can send. But now I also get this new policy tip. You see up here it says it’s going to be highly sensitive information and it’s to be automatically protected. And even highlights that it’s in the attachment. So maybe I didn’t realize there was something confidential in that attachment. I now get that notice.

And if I hover over the policy tip, you see in this case it’s Social Security Numbers. Now this could be credit card information. It could be anything. And this is fully extensible. So it’s a great partner opportunity if you think about what the protection could be, and work with customers on implementing it here.

Now I’m going to go ahead and hit send, because I know it’s going to be automatically protected. And I copied myself, so you can see what it looks like when we receive it. So what happened when I hit send is that Office 365 automatically applied information rights management, and it encrypted that e-mail. So I know that only Bob got the e-mail.

So I’ll show you what that looks like. If I open it up, you can see there it was protected. I can’t forward, I can’t print, I can’t copy. Even my snippet tool doesn’t work when I have this window open. And it was all taken care of for me. I, as the user, didn’t have to worry about it, but the business is protected.

Now, another key area of the new Office experiences are new app development models. It’s all based on Web standards, HTML 5, JavaScript. So now that anyone who is a Web developer can now build apps right into the Office experience. So in Outlook I have a few apps loaded. You see in this gray bar I’m getting prompted. And they’re actually prompting because something in the e-mail is triggering it if it’s relevant to that app.

So if I open the Bing Maps app, you can see if I scroll down here it’s actually being triggered based on an address. It’s bringing live Internet content. I can zoom in, I can get Bird’s Eye View, really rich information. Now in this case it was an e-mail or an address that was triggering that. It could be a part number, and you could bring in supply chain information. It could be an invoice and bringing in ERP data. So as a user I get to stay in the Outlook experience I love, but I have all the business context I need to be successful.

Now let me show you another app built by one of our partners, LinkedIn. You can see here I’m sending e-mail to people outside my company. So the LinkedIn app is showing public profile information, again, right here in my Outlook experience. I can click through and see maybe Molly has changed jobs, or the title has changed. I know that right within my e-mail experience. Really powerful, and again an amazing partner opportunity to build these new apps right into the Outlook experience.

Now e-mail is certainly an important part of work, but so is the business content. And increasingly users want access to business content across all the devices wherever they are. And users are now putting business content in all kinds of different cloud storage options. But they don’t have the business controls that organizations need to stay safe. Well, now with Office 365, I have SkyDrive Pro built right in.

So here I am in my Office 365 account. I have all my content synched to the cloud, so I can access it anywhere. It’s super easy for me to just drag and drop content in. That simple. It’s also just as simple to share. So I see I’ve shared with several people, I’ve sent different settings whether they can edit or view. And it’s just as easy to invite new people as well. So if I start typing to Bonnie, perhaps, and you see because of the Active Directory my corporate address was rendered as well, but it’s just as easy to share outside my company. So I’ll go ahead and share with Joe here, too. And with that simple click, I’ve now shared inside my company and outside my company.

Now another key aspect of business content and having access everywhere is being able to work online and offline. So now in SkyDrive Pro all I have to do is create this distinct relationship, and when I do that my Windows File View creates a local folder right here, all my content is synched. You see all my content across the two things. I can interact with this online/offline. If I work offline, it synchs back when I get back online. And I can even just drag and drop between content in my documents folder right up to my SkyDrive folder. So literally without changing any of my behavior as a user, I go from working on my C Drive to working on SkyDrive, and everything is in the cloud. And on the backend of this it’s all powered by SharePoint, so organizations have the enterprise content management and protection they need to be safe with this content.

Now increasingly organizations are also turning to enterprise social to drive collaboration around the company and break down boundaries in a really healthy way. A year ago, Microsoft bought Yammer, the leader in enterprise social. Now here we are a year later, and Yammer is fully integrated into Office 365, so all I have to do is select that in my 365 navigation, and I’m brought right to my Yammer news feed. And you see all the things you’d expect in a great enterprise social experience. I can like. I can go ahead and reply. And, again, you see because of Active Directory integration, my corporate address is rendered there; I can also hash tag if people want to follow certain keywords. It’s that simple.

Other things I can do, like collaborate on an event. Here I can post my event. I can get feedback on it, share content around it, or even take an ad hoc poll. So if I want to get some quick information from my organization, it’s that simple. All of that right in my company news feed.

Now another key part of enterprise social is information being brought to me proactively based on my profile and things that I’ve done. So here you see Yammer suggesting to me groups that I can follow, or people that I can follow based on things that I’ve done and what Yammer knows. So I’m going to go ahead and just join that finance group. You see I get a prompt there. And now if I go to my groups, you can see I’ve joined that. So this is a group of people from within the company coming together to talk about a certain topic of interest. Well, I happen to be following a few different sales opportunities. So I’m going to go ahead and click through to this sales opportunity group, and you can see I’m following some deals, and I’m working on this Revlon deal specifically. And I’ve posted a question about when we think it will close. Well, as I wait for a response here, I’m going to go ahead and click through to that opportunity and learn a little bit more about what’s going on with the deal.

So now I’m in a dedicated area for just that Revlon sales opportunity. But if I click through, you can see this is actually a sales opportunity being managed in Dynamics CRM Online. So as I click through it takes me straight to my CRM Online experience, but yet my news feed and my Yammer feed is right there. So I keep that context as I go across my cloud experiences. Now you see it looks like Katie has responded. This deal will close in Q3. So I’ll check that. Yes, that looks great. And I can keep working on my sales process, and get going there.

Now another really cool aspect of Dynamics CRM Online is a recent acquisition we did earlier in the year called Netbreeze. Let me show you what that looks like. If I go over here to my Netbreeze app, you see this tracks all social sentiment and monitoring analytics. So I’m looking at the Revlon customer, I want to see what’s going on with the Revlon brand and the company before I call in to the sales person. I can see all the posts going on across social media. I can see the trending. I can even see the social sentiment. This is on a plus to minus 10 scale, so at 7.8 things look pretty darned good at Revlon. It’s great to know as a salesperson calling on them.

If I click down, I can see the different channels that it’s pulling from. You can see it’s looking at Facebook, and YouTube, and Twitter. And in this case Twitter is making up a lot of the traffic, so I’ll go ahead and click down there. And you see now it’s giving me just the specific Twitter view. I can see, again, the posts, the trending on that line. And I can see drilling down to really granular detail, I can see all the different channels. I can look at particular authors of posts. I can even retweet right from here as well. So incredibly powerful capabilities, and all of this is coming to Dynamics CRM 2014. It’s amazing stuff.

Now you watched me go across Office 365 and Yammer and CRM Online, and even Netbreeze, and I didn’t have to reauthenticate across any of that thanks to the integration with Azure Active Directory. Now you would expect that from the Microsoft cloud, of course. But now that same seamless user experiences is available across all cloud services thanks to the new enhancements of Azure Active Directory Stack Management. So you see I have different cloud providers, so as a user I can bring my own cloud, and IT can provide that seamless single sign-on experience across all of my cloud services. And bringing your own cloud is an increasingly important scenario, and we have to support that today with preview.

Now I’ve been doing all this work on my business PC, which is great. But I’m actually going to switch over to my personal RT device, because while bring your own cloud is very important, bring your own devices is incredibly important as well. And Microsoft supports this better than anyone. So here, again, this is about enabling a great user experience while ensuring the company has the right kind of controls.

Now on my RT device I have my family photos and lots of other personal information, but I also want to make sure I can do work on this device as well. But as I put business apps and business data on here, I also don’t want my personal content and my family photos at risk of being wiped or removed or managed by my company. But I know that my company has to manage it in the right way as well. So now with Windows 8.1, Windows Intune, as well as System Center Configuration Manager, it’s super easy. So all I have to do is go to my settings, change my PC settings, and now I use this new Workplace Join. And you see here I can actually join my device to my workplace network right there. And what this does is register this device into Active Directory. And I can also set this up for both management and app deployment. It’s all set up, which is great.

So I’m going to go ahead and just go into my company portal where I can get new apps. And you see in my company portal, this is an app that my company has built for me, as well as ones in the public Windows Store that my company is recommending. So I can manage all of my apps in one place as a user, another great experience.

I’ll go ahead and load the Dynamics CRM app, because that’s one I want to keep working on that Revlon deal. Now you can see in my company portal, too, I can also manage all my different devices. I have my desktop, I have my Surface, I even have my iPad, so you can manage across platforms. So I’m going to go ahead and open iPad, unless maybe I lost my iPad. I can just swipe all the content from right here, or maybe someone backstage maybe accidentally stepped on my iPad. So I don’t need it anymore. So I’m going to go ahead and just remove that, get rid of that thing. Perfect.

Now the CRM app is loaded. So let me go and grab that. So here it is right there. Go ahead and load that new CRM app. You see a new beautiful Windows-style CRM app for mobile use. You can see it’s got all the content I need to keep working on that Revlon deal. I can just take some actions right here in the app to get a beautiful new experience from the CRM team.

Now, at some point I’m going to want this device to go back to being just my personal device, and get rid of all the business data. Now, again, Windows 8.1 is just as easy as getting it on. So I go back to my settings, change that, and here’s where I unenroll from management and app deployment. And then I also can leave the workplace network, too. So literally with those two selections all of my business apps, and all the data associated with it have now been moved off to the machine. So if I go to my apps list, the CRM app is gone. Do you see that? As is all the data associated with it. But what’s not gone are my family photos. Again, all my personal content stays attached, but I was able to get work done across my personal device. (Applause.)

Now a key scenario of working remotely, of course, is virtual meetings. And frankly virtual meetings are probably more common now than in person meetings based on how we all work across the globe. Now a year ago Microsoft bought Perceptive Pixel, otherwise known as PPI. It’s this beautiful device, great touch experience, intuitive gestures, and inking on a beautiful HD experience. And when you combine this device with the Skype and Lync communications experience, it really comes to life. So let me show you what that looks like.

Going to my desktop here, and I have my Lync app running right here. But I want to point out that at the top I have my Skype buddies, and you see that I have presence indications because of the federation between Lync and Skype. I see they’re available. I can actually just click, I can IM. You see right there. I can even just call from here as well. And this unlocks a whole new set of experiences, imagine business to customer. I’m a doctor. I want to communicate with a patient, so much opportunity with the Lync and Skype integration. And video is coming next year, as well.

So let me come over and show you what the Lync HD multiparty video experience looks like today. So I’m going to join a meeting from my Outlook reminder. Go ahead and load that. And what it’s going to do is pull in my video feeds from my colleagues around the globe that I’m having this meeting with. I’ll go ahead and start my video here, as well. Perfect. Now you can see, again, with this amazing device it really brings it to life. It’s like we’re here in person and you can see with the HD incredible detail and make it really impactful and engaging.

Now this is an important scenario, of course, because no meeting takes place without content. So let me add a presentation, as well. There we go. So now you see Lync does all the work to reflow that experience. So I have my videos across the top, and now I have my presentation in the middle, again, a beautiful layout. I didn’t have to worry about any of it. I can interact with my content; scroll through, but again, great inking experience.

So let me go ahead and select some text here. And maybe I want to do some markup, I can just circle here, maybe that’s the wrong date, make it ’77 instead, and all the markup stays with the presentation afterwards, as well. So it’s all kept together. And any participant can be doing this, as well.

Now presentations are important part of meetings, but notes are usually also part of meetings, as well. So I’m going to add a OneNote notebook and show you the amazing integration between OneNote and Lync, as well. So you see when I open that OneNote it actually brought in the presentation I was using, all of my attendees, and the agenda information. I didn’t have to do any of that. Lync and OneNote work together to share that information. And if I hit my drop to desktop, look, it beautifully reflows it. I have my videos. I have my presentation. And I have my OneNote now over there, as well.

And again, great inking experience. If I go select yellow I can just cross that out, maybe I need to make it 5:00 p.m. Again, as could anyone be doing the inking experience. Again, when you bring together the beautiful device and the Skype and Lync experience, it really unlocks a whole new set of scenarios. And it brings all the technology I use, how it works together, so seamlessly, is what unlocks that dynamic business experience. And in everything I showed there’s a ton of opportunity for partners to build on, extend, and manage, tons of opportunity.

With that, back to Satya.

SATYA NADELLA: Great, thank you. Thank you so much, Julia. (Applause.)

So hopefully you got a great glimpse of what Office 365, Dynamics, Windows Intune, and Azure AD can do to bring to life this dynamic business and people-centric IT. But, I’m very pleased to make two announcements today. One is around Dynamics. We have a complete new client. You saw a very brief example of that in Julia’s demo, which is the new client, completely built for Windows 8 and optimized for Windows 8 and touch. So we’re going to have that out in the fall. We are very, very excited about that. We think that’s going to be something that will completely change how people interact with business applications on these modern devices. The other announcement is the preview of Windows Azure AD, fast management features. Julia, again, briefly showed how we can now support bring your own cloud scenarios with full IT control, where you can use Azure Active Directory to be able to do single sign on, provisioning, de-provisioning across all SaaS applications that go beyond Microsoft SaaS applications. We think in combination with Windows Intune now you have the full suite of tools from an IT perspective to manage both BYOD scenarios and bring your own cloud scenarios.

So now let’s switch gears. Let’s talk about data. When it comes to data it starts with a mindset where you think about data as the foundational, fundamental driver of your business activity, not an exhaust, but the fuel of business activity. And when you start with that mindset, the core requirement is around storage. You want to be able to take all forms of data, it can be documents, graphs, SQL data, NoSQL data, media, all of that needs to be stored in a very rich way. And we have a very rich set of platforms with SQL and Azure blobs, and so on, to be able to do that.

You also want to be able to tier storage, especially with in-memory technologies. Some of the advances in the new SQL Server release, around how we use in-memory to speed everything up by factors of 10, is phenomenal. So that’s the core storage capabilities that you build into your storage engine. Then of course you want to process all of this data. And also there is a wide variety of things. You want online transaction processing. You want to be able to do Hadoop style map reduce for analytics. You want to be able to do real-time streaming. You want to be able to do interactive data warehouse queries. So those are all the processing capabilities you want to build.

And in fact, you see a lot of customers who are already taking advantage with the help of partners who have built their practices around SQL and on analytics products. In particular “Halo 4” is one example where most people when you think about “Halo” and game play, and consoles don’t think of analytics. But, “Halo” is an amazing example of taking data as the core driver of your experience. They use their data, which comes from game play, to drive game play. They do all the post-analytics, using HD Insight on Azure to even detect fraud, to do marketing to the users of “Halo.” So it’s a phenomenal use of data to be able to continuously drive the experience of “Halo” and improve it on a daily basis.

Another example, on the other side of the spectrum, is our partner 210 Degrees, built with Ascribe in the U.K., where they completely changed how you can detect infectious diseases and their spread by working with the National Institute of Health in the U.K., where they take, in fact, clinical notes that doctors write, which is all unstructured, if you know the doctors and the way they write, take all of that into the cloud and be able to do analysis on it, to be able to understand how the infectious diseases could be spread. So in fact, they use social media, doctors’ notes, to be able to do predictions even much before you have a pattern established in clinical data. So those are some examples of how people are using these new data platform capabilities to build revolutionary solutions in healthcare or in game play. But, that’s not sufficient, or that’s not the complete story.

When you think about having lots of data and having lots of rich processing capabilities, the next step is to be able to empower your end users with the best tools to drive insights. This is where we collectively have really created one of the most amazing phenomena when it comes to BI with self-service BI. We took the most ubiquitous tool around data in Excel, combined it with the power of SQL Analysis Services, and started the self-service BI revolution, and especially in combination with SharePoint, we really have done a fantastic job of driving insight at the edge of all data, big or small.

Today I’m really pleased to announce the next giant leap, if you will, when it comes to self-service BI. We are announcing Power BI for Office 365 Preview. It takes all of the rich capabilities around data discovery, data navigation, visualization, collaboration, enterprise features around auditability, taking all of that, building it right into Excel and SharePoint, so that every user has friction-free access to it. They’re also delivering all of the rich cloud capabilities that power this natively in Azure. So that means all of the SQL analysis capabilities that power this experience are all there natively in the cloud.

So to show you a glimpse of what this new solution, Power BI for Office 365, can do I wanted to invite up on stage Amir Netz.


AMIR NETZ: Thank you, Satya.

Power BI brings self-service analytics to the cloud and the power of the cloud directly into Excel. It opens amazing new ways for users to connect with data. So let’s take a look. We have here on the screen our Excel 2013. And I want to create a report about our datacenters. I don’t have the data. With Power BI we can actually go and find the data that we need. You see here online search, I am going to use it to go and find the data for my report.

I’m going to type in my search query and just here within Excel Power BI is searching for millions of public data tables, and finding the data that I might need. It comes from Wikipedia, it comes from the marketplace, it comes from Bing, but because I’m a Microsoft employee I’m also getting data not just from the public data sources, I’m also getting data from my enterprise data assets. Those were mapped into the catalogue of Power BI. So here we see a table from my data warehouse, and I can go and add that table to my Excel, and just like that Power BI connects and aligns the data directly to my sheet just like that. It’s so easy.

Now I want to create my report. I’m going to go and use PowerView. It’s also integrated into Excel 2013. So let’s go and create a nice report here. We’re going to take a look at the  let’s take the location of the datacenter, the square footage of the datacenter, let’s make it a bit larger. It’s Excel 2013 so we can just convert it immediately to a map. We can go and categorize my datacenters by generation. Just with a few clicks, a beautiful report and it’s not the only report I have here in my workbook. I have a couple more.

So this report here shows me the storage of Azure, just an amazing explanation of the growth in the business. This one here shows me the subscriber’s growth in the business. You see almost 200 percent in just over a year. I mean I can slice and dice and look at segments of users, and see the growth there. So I have this beautiful report, interactive, and I want to share it with other people and to do that I go to the file menu, I do a save as and I’m saving it to the Power BI side in Office 365.

And now what does this site look like? Let’s see how this site looks like in SharePoint Online. This is it. You can see how well organized it is. You see my Azure report, my Office 365 report. It’s clean. It’s crisp. It’s beautiful. I want to go and take a look at one of those reports. I click and of course, because the reports are all created inside Excel, Excel is the application used to be able to browse the reports in my browser. So you can see here the explanation of growth you see in the compute resources of Azure, you can go and look at the other reports of that, the database growth, and of course the whole thing is fully interactive. So I can go select different time slices and in the browser get the full interrogation of the data.

It’s very easy to share, very easy to explore, but it’s more than that, it’s a full enterprise offering. So let’s take a look and see all the options that we have here. So see this menu here, take a look at what we have. I can share with other people, I can protect the data, I can schedule data refresh, where Power BI will reach back from the cloud to the enterprise, go to the original data sources, bring the data on the regular basis up to the cloud, up to the report that we have here. I can track the data usage by my users. And one more thing I can do here, I can add that report to my mobile favorites. And you can see this mobile star here, now that report is here and it’s showing up on my mobile device. It’s a beautiful application Power BI. It’s fully interactive as you use it. And it’s not just this report. I have a full gallery of reports that I can use here. You can see I can browse through that. It’s just the best way you can have to consume reports on the go.

So you’re seeing what kind of a gorgeous, great offering we have here. But, there’s one more thing, one more capability that I think you need to see, because in my opinion it’s the true game changer. So for this I’m going to take a look at another Power BI slide. Look at this one here, and make it a bit larger. This one Power BI slide is for a media company. And you see it has these reports that we created in Excel. But, there’s another role here, we call it “Featured Answers.” And these are the most common questions my users ask about the data. For example, show our sales pipeline. I’m clicking on it and now Power BI connects automatically to the sales pipeline data source and shows me the results. Now it looks like a comp report, but it is not. It is the beginning of a conversation with Power BI.

So I can compute that, show our sales pipeline only with opportunity size greater than $20,000. And as I type I immediately get the answer. You can see that there are six opportunities greater than $20,000. It’s very easy, right. (Applause.) Now one of those opportunities is this rock-themed event series. And I want to continue the line of interrogation I want to ask questions about that, so I can go and ask maybe the top rock classics. And notice I’m using, something magical happens. As I was typing the questions the results came up and I actually realized I’m asking about songs. So I moved away from the pipeline data set, automatically it connects me to a different one. This one is the historical data set for all the music charts in the United States. So I can see that “Bohemian Rhapsody” here, by the way my favorite song of all time, is the top rock classic. And I know it’s right, because Power BI tells me what it understood from me.

Look at that. It tells me that when I said rock I meant rock songs. And when I said classic, I meant a certain period of time, the ’70s and the ’80s. It is not the oldies from the ’50s. And when I said top it said you probably want to rank it by something, so you rank it by the number of weeks it stayed on the charts. So I like that interpretation, but not exactly. And again, Power BI comes to help me. It says, hey, I know what you mean now. So how about instead of ranking by weeks on the chart, I offer other options, rank it by the weeks the song stayed at No. 1. And I can see that “I Love Rock and Roll” is showing at No. 1. And every other part of the sentence is understood with Power BI.

So you say, maybe you don’t want to look at songs, you might want to look at artists or albums. Maybe not rock, here’s other genres. How about pop? Let’s go with pop. And see “Physical,” Olivia Newton John, the top pop classic from that era. It’s just an easy and fun way to interrogate the data. Let’s take this for example; let’s ask for songs about true love. And I can see immediately five different songs, one of them by Bing Crosby, another by Elton John, all called “True Love” showing up on the charts. I can ask questions about people that I know. Songs about Bill Gates, and you’d be surprised there’s actually a song called Bill Gates showing up on the charts, three years ago. Yes, by Lil Wayne, one week on the charts. I looked at the lyrics. It actually is truly not a love song.

We can ask more business questions like number of songs. You can see we have 2,600 songs in the database. Let’s list it by year. And now notice how the system automatically detects what I’m asking, giving me a much better visualization. This is a better way to look at it as a chart, automatically. I don’t have to say anything. And you can see this very interesting chart. It shows how many songs showed up on the music charts every year. And you can see in the late ’60s and early ’70s over 700 different songs on the charts. And then we go to the new millennium you see how it’s kind of dropping gradually and it’s less than half of that when you get to the new millennium. And then there is some recovery. But, when you turn on the radio and it seems like it’s the same song playing again, and again, and again, well now you know, we actually do listen  you have the proof. We do listen to way less songs than people in the ’60s and ’70s listened to, very interesting.

Now the picture is even more interesting when you look at it by genre. And again, the system just changed the visualization for me on the fly, and look at that, this is the pop genre. And you see the peak that we saw before, the decline, and some of the recovery. Rock starts the same way, peak, decline, but it doesn’t recover. Something is going on here. And look at that hip-hop. From the mid-’80s hip-hop is growing and growing, and growing and it’s not taking from pop, it’s taking all the market share from rock. So you can see how the data is telling you this fascinating story of the music industry just like that.

Now, of course you might want to know other questions. For example, what is the best song of all time? And you can see that we have here Jason Mraz with “I’m Yours.” The first time I saw that I said, who the heck is Jason Mraz? But I had to go look at the data three times and unfortunately it is Jason Mraz, scientifically speaking, it’s the best song of all times, over a year and a half on the chart, like no other song. It’s amazing. And of course, the age old question, who is the best artist? And now we get here, again, a different visualization, and you can see here that you have Mariah Carey, you have The Beatles, we have Usher, we have Elvis, really fantastic artists that we have here. But, these are very different periods of time and it’s really hard to compare The Beatles from the ’60s to Mariah Carey from now. So maybe other visualizations can help me. And with Power BI we can switch the visualization. Look at that, I have a whole list of visualizations. I can change it to a table, for example. It doesn’t help me to explain it. But, there’s one more visualization here that we call the king of the hill. And this one is just specifically designed to explain changes over time.

Now we can see here, let me just explain how it works. It’s kind of a bubble chart. In the middle we have the biggest bubble, it will be the artist that has the most weeks at No. 1 on the chart is the king, right. It’s going to be the center big bubble, around it will be the contenders, the people who want to take the center position from it, the other artists with less weeks on the charts. And we’re going to animate over the time dimension.

So we start with 1955, Frank Sinatra, Pat Boone, and we’ll see the Motown area, so we’re going to see here the Platters joining in. But, in 1957 something amazing happened, Elvis Presley breaks through with “All Shook Up,” and he is the king. This is Elvis in the center. He is going to have over 100 different songs on the Billboard 100. It’s just dominating. But, in the ’60s come and so over the pond the greatest band in the history of music, The Beatles are showing up. And they would have 26 No. 1 hits. They’re going to have eight consecutive ones. They just dominated the rest of the decade into the ’70s, and they’re breaking up. And this is kind of a weird condition. Look at that, Three Dog Night, never heard about them? Forget about them, because the next one is going to be Elton John, he’s a legend. Candle in the Wind is still the No. 1 selling single of all time. This is also the disco era. So we have the Bee Gees, I danced to their songs with my first girlfriend. And of course, it was Olivia Newton John, a giant mega-star in the early ’80s.

And now look at that, what do you have in the ’80s, Paul McCartney, going to be followed by Michael Jackson, going to be followed up by Madonna, going to be followed up by Whitney Houston. This is a parade of the greats we had in the ’80s, George Michael, Paula Abdul, I have no idea what she is doing here. Now, we’re seeing Mariah Carey, she is going to dominate the ’90s. She’s going to have a fight with Boys To Men. But, look at it, she’s in that fight and she’s pushing them out. She is going to continue with 79 weeks at No. 1. She is going to dominate the ’90s. But, the ’90s are coming to an end. Santana is taking over. He is going to take over and then it’s the hip-hop and rap, with Nelly, Kid Rock I cannot stand, and then Usher he is a genius, wonderful, wonderful. But, look at that, it’s Mariah. She’s over here again. She’s looking for a fight in the 2000s, and she’s pushing them out. And now we are getting ready for the era of the divas. Rihanna, look at it she’s taking over. Katy Perry is trying. Adele is trying. But, no Rihanna is here to stay. Thank you, Rihanna. Thank you Power BI.

Thank you all.

SATYA NADELLA: Thank you, Amir.

Hopefully you got a good feel for the power of Power BI in Office 365, and now just imagine if you can sort of replace all of the pop data and music data with your business data and your customer data. Mix it up, in fact, with some of the public data inside of Bing, and doing these kinds of demos where people are able to get insights from all of the data that they have inside their organization, and doing a join of that with, in fact, information that’s available publicly. We think that this is the next big leap when it comes to BI and insight around big data.

So let’s switch gears and talk about application development. I know many of you in the room have lots of projects that you’re doing application development for. This is something that we have historically done very well together with Visual Studio and .NET. And, in fact, all of our client and server runtime platform. But this is going through a sea change. And, therefore, we are building and retooling for the sea change a few apps that you want to build. It all starts by having a platform that is capable of both infrastructure as a service and platform as a services. So that’s IaaS plus PaaS. And that means any mission-critical Web application you want to build, any mobile front-end you want to build, where you’re automating a business process with a mobile front-end; any cloud service you want to build, you want to have this rich capability of both infrastructure as a service and a platform as a service. And you want to be able to deliver that, by the way, in both Windows Azure, as well as on Windows Server. So that symmetry of development runtime is also very important, and that’s what we’re building out.

Since you’re building applications for enterprise customers, you’ll want to have real richness of business logic. And this is where we are making some changes, and innovations, which are going to fundamentally change the economics and the repeatability of your business application development, or mission-critical application development. From identity, you saw Azure AD already from an IT perspective, but from a developer perspective now you have a fully programmable identity management solution where you can handle multiple identities, consumer identities as well as enterprise identities.

We have BizTalk services in the cloud now where you can use that to be able to automate your enterprise application integration, or even B-to-B integration. We have all the richness of the data platform I talked about previously that now you can incorporate as part of your solutions without having to really build that all on your own, whereas you now will be able to make API calls.

And, lastly, perhaps most interestingly, is you can, in fact, incorporate all of Office 365 as part of your solution. Office 365 has a very modern API surface area across the entire length and breadth, both on the client side as well as on the server side, that you can now program as part of your solution. Think about all the document workflows within the enterprise business application context that you can incorporate.

Of course, at the end of the day, what matters to you as well as your customers is productivity. And that’s where we’ve always led with the fantastic tooling in Visual Studio. We’re taking that a step further to make rapid application development, especially with the Lightswitch features inside of Visual Studio 2013, we’re making it possible for you to build your Web applications or business applications with Web fronts that much more simple for you to do rapid application development, especially in combination with Office. So the combination of Visual Studio, Lightswitch, the services that go with Visual Studio, either on TFS or on Azure with source code control, project management, build, test, all of those services come together to really improve your productivity.

And we have many, many customers and partners who are taking advantage of this. The one I wanted to highlight was a solution built by .NET Solutions for IT, a financial services company in the UK. And it’s a very cool solution in the sense that they were able to take a very innovative approach to doing codes where they were monitoring the in-car telematics getting back information to Azure, then rendezvousing that with a code system which was on premise to be able to do real-time codes, and do custom codes for their customers. So that’s a pretty innovative way to think about mobile applications, Web tier, as well as being able to service relay back to data inside of your enterprise. And that richness of both tooling and capabilities in the runtime are unparalleled and unique to what we do with the combination of Windows Server and Windows Azure.

So I’m really pleased to announce the availability of Visual Studio 2013 Preview. I really encourage those of you who have .NET practices, Visual Studio expertise, now you can take the tooling coming out, the runtimes that are coming out as part of Windows Server, Windows Azure, as well as Windows 8.1 and Windows Phone, and really build this next generation of mobile applications as well as Web applications, and cloud services.

I’m also pleased to announce SQL Services, or SQL Database Premium Services for Windows Azure. Windows Azure has been going through significant growth, and particularly there’s not a solution that’s built in Windows Azure that does not use SQL Azure. And we are now introducing some capabilities that allow you to make those reservations. That means you can bring your most mission-critical applications over to the cloud. This is, again, something that we are going to be very unique. We are unique already with the fact that we have a PaaS-based SQL Service. And now we are making it much more ready for mission-critical applications.

So the last piece of the presentation today is cloud infrastructure. Now all of the things that we talked about rely on cloud infrastructure. And our goal has been to build the most robust cloud infrastructure. And to live the cloud lifestyle we build Windows Azure using our server software. So when we sort of say we are serving millions of virtual machines on Windows Azure, it runs, in fact, on Windows Server 2012 hypervisor. So that’s an amazing feedback cycle. Not just that, but all of our first-party workloads, from Office 365 to Bing to Xbox Live, are all running on Windows Azure capabilities. So that this reinforcing feedback cycle is what battle tests our cloud infrastructure.

We are, again, unique in that we take that same cloud infrastructure that we are using on a day-in and day-out basis inside of Azure as well as our first-party applications, and making it available as part of Windows Server and System Center for others to be able to build their own cloud. And that’s what really gives us the ability to deliver a true boundary-less datacenter infrastructure with consistency to our customers.

We think that that is very, very important to be able to really service the needs that enterprise customers have around infrastructure and support of their applications, and this is something that we believe we are setting the pace, and no one else in the industry, neither Amazon nor VMware can promise or deliver this level of consistency, this level of mission-critical readiness because of the battle testing of all the diverse set of first-party workloads.

We have lots and lots of partners who are already taking advantage of it. One example that I wanted to highlight today is what Skyline Technologies did for Trek Bicycles. They really took advantage of all of the capabilities of this boundary-less datacenter. They built out a private cloud solution. They, in fact, used the IaaS capabilities inside of Azure to be able to deploy the retail management solution. They even built a PaaS solution on Azure to be able to automate all of the partner management. So again, you can see how having this consistency gives you the flexibility to be able to take advantage of all the resources in your datacenter, in your partner datacenter, and in Windows Azure, but still have the one consistent virtualization and management pane of glass from an IT perspective.

So now to really show you this boundary-less datacenter in action, I wanted to invite up on stage Jeff Woolsey from our team. Jeff.

JEFF WOOLSEY: Thank you, Satya.

It’s a pleasure to be here. How is everyone doing? (Applause.) Excellent. The Microsoft Cloud OS is about making business more agile, datacenters more flexible, and providing customers a rich, consistent cloud whenever and wherever they choose to deploy it. Let’s start by taking a look at Azure websites. Here you can see I’m running Contoso, and Contoso is running its website here on Azure. You can see with the consistent, intuitive dashboard here I can see a number of key resource utilizations, whether it’s CPU, whether it’s networking or storage.

One core tenet of cloud is elasticity. Wouldn’t it be great, for example, if you could take a website and provide some policy and have that website simply scale out or scale in based on demand. Well, we think so. That’s why we’re introducing Azure Auto Scale. With Auto Scale, Azure monitors your website, monitors the CPU utilization, and in fact will automatically scale in or scale out your workloads based on demand.

You can see here we have a number of instances right now currently running, and my target CPU minimum threshold is 60 with a high of 80. So, for example, if I’m below 60, my website will actually scale in to use a minimal number of websites. Of course, if I go over 80 percent, or even over 90 percent, in fact it will scale out. In fact, it could be three, it could be five, it could be seven. In fact, let’s go all the way to 10. Everything you’re seeing here is all hot. It’s all live. It’s all happening in real time without any user intervention. It’s completely transparent. All of this is built into Azure. That’s the power of elasticity in the cloud.

Now, in addition, another key aspect of Azure, of course, is infrastructure as a service with Azure Virtual Machine. With Azure Virtual Machines, we can satisfy a number of key scenarios, whether it’s simple test dev or if it’s running your production line of business applications.

For example, let’s go ahead and create a new virtual machine, and again take a look at how intuitive and easy all of this is. I’m going to create a virtual machine here from the gallery. And you can see I’ve got a wide variety of options already available, whether it’s SQL, SharePoint, BizTalk. I even have a number of Linux flavors as well. If I would like to upload my own images, I can do that.

I’m going to choose my favorite, my new favorite, which is the Server 2012 R2 preview. And I’m going to go ahead and give this a name. At the same time, let’s also take a look and notice, we now support virtual machines with up to eight cores and 56 gigabytes of memory. That’s great for those scale up workloads, for example, like SQL. I’m going to give it a password, and just like that we are done. I’ll give it a DNS name just like that. In a few clicks like that I’ve created my virtual machine, all of this is running up on Azure.

Now, of course, one of the things that’s important is I want to be able to access remotely from my datacenter. Not a problem. With Azure I simply go on over here to networks where I have my Contoso virtual network. Here I’ve already created a secure site-to-site VPN. This allows me to essentially use Azure to extend my datacenter. All very cool.

Now, one of the things that Satya mentioned earlier was the fact that we from an engineering standpoint we think of cloud first. Doing so means we can focus on providing a consistent experience across clouds. And we’ve learned a tremendous amount running Azure, for example. In fact, we’re giving you those learnings in the Windows Azure pack. With the Windows Azure pack coupled with Windows Server and System Center, you can help customers create their own Azure consistent private cloud.

If you’re a service provider, you can use the Azure Path with Windows Server and System Center to create your own Azure consistent service offerings. Let me show you. Let’s take a look at a completely different cloud. And take a good look here. Folks, this is not Azure. Look right here, this is actually a Contoso site. This is the Azure Path. This is the Azure Path built on top of Windows Server and System Center. You see that same consistent look, that same consistent feel. It’s about solving one of our key customer issues, which is every time I go to a different cloud, whether it’s private, whether it’s service provider or public, I get a different experience.

Every time I’ve shown this to a customer of any size, they all go, I want this, please give me this. Well, that’s exactly what we’re doing with the Azure Path. You can see up here I’ve got high-density websites. I’ve got virtual machines, databases, and more. In fact, let’s create a virtual machine. And, guess what, it looks surprisingly similar to what I just did in Azure. In fact, here’s the virtual machine gallery. Now, again, this is my gallery for Contoso. It’s got Active Directory, SharePoint, SQL, and more.

I also want to position this as a tremendous business opportunity. Like I said, every time I show this to a customer, they say I want this. Well, they’re going to need help to build these custom galleries, to provide customized offerings, and they’re going to look to you to provide that support.

Now I already created a virtual machine here. And, again, this is all running on prem with a service provider, or this could be with a private cloud. And like I mentioned before, remember I showed you the clear and consistent monitoring and recording of usage? Guess what, here it is as well with the Azure Path on premises. Remember how I showed you just a moment ago in Azure the ability to scale out instances? Well, again, here it is with the Windows Azure Path. You’re not going to get this from Amazon, and you’re not going to get this from VMware. And we’re providing all of this.

Now in all of these demos, whether I’m showing you Windows Azure or whether I’m running Windows Server and System Center, all of this is powered by Windows Server and Hyper-V. So let’s take a moment to take a peek at the next version of Hyper-V.

Now one of the first things I want to remind everyone was that in Windows Server 2012, we led the industry by providing the very first hypervisor with share nothing live migration. And we’re back again leading the industry again, this time in terms of live migration performance.

I’m going to go ahead and start off a couple of live migrations. In all of these tests the virtual machine is the same. The VM is an eight-gigabyte VM and it’s running SQL Server, and it’s under massive load. So there’s a tremendous amount of memory churn going on. In fact, this is the absolute worst possible case for live migration. The first one is using Windows Server 2012. The second one is using Windows Server 2012 R2, with live migration compression. With compression we’re taking advantage of the fact that we know the servers ship with an abundance of compute resources, and we’re taking advantage of the fact that we know that most Hyper-V servers are never compute bound. So we’re using a little bit of that compute resource to actually compress the virtual machine inline during the live migration. This allows us to compress it and it’s actually done a lot faster and much more efficiently. All of this is built into Windows Server 2012 R2. (Applause.)

Now, compression  thank you. Now live migration compression is awesome. And we could have totally stopped right there, but we didn’t. You see, also in Windows Server 2012 we introduced a new technology called SMB Direct and RDMA. We introduced it for the Windows File Server to dramatically improve performance and scale. Well, we are now bringing that technology to live migration in the server 2012 R2. And hold on to your seats, folks, because again this is the same virtual machine, this time with SMB Direct and RDMA. And you can see it’s done a lot faster and, in fact, with no extra CPU utilization. (Applause.)

You’re not getting this from VMware and you’re not getting this from Amazon. So think about what you’ve seen here, the combination of Windows Server, System Center, the Azure Pack and Azure, allowed us to create consistent clouds whenever and wherever our customers choose. Let’s go build the best clouds together.

Thank you very much.

SATYA NADELLA: Thank you, Jeff.

So that gives you a feel for what we can do together when it comes to cloud infrastructure and really bringing to life this data center for our customers.

So I wanted to close out by saying first the preview editions of both Windows Server 2012 R2 as well as System Center are available now. So we would really like for you to give us feedback and also to really build out these private clouds, as well as service provider clouds, and take advantage of Azure, as part of the mix for what enterprises need from an infrastructure standpoint.

In closing, I wanted to reiterate what I started with. We, I think, have the most unique opportunity ahead of us to lead this next generation enterprise-computing platform with devices and services. We have the best solutions collectively, across the dynamic business, social enterprise, big data, people-centric IT, as well as cloud infrastructure. So let’s go ahead and make that opportunity a real reality for all of us and drive market success.

Thank you very, very much, and have a great rest of the WPC.


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