Remarks by Kirk Koenigsbauer, Corporate Vice President, Office 365 Client Applications, in Toronto, Canada, July 12, 2016.
SHIRLEY FERNANDES: (Applause.) I’m Shirley Fernandes, Chief Productivity Officer of a company based in Sao Paulo, Brazil. We are honored to be Brazil’s Microsoft Partner of the Year winner. We are excited to hear about Microsoft innovation opportunities in Office 365 and cloud services.
Each year at WPC, our goal is to strengthen our relationship with Microsoft, deliver better customer solutions and to build a more profitable business.
Now, ladies and gentlemen, it’s my pleasure to introduce Microsoft Corporate Vice President, Office 365 Client Applications, Kirk Koenigsbauer. (Applause.)
KIRK KOENIGSBAUER: Good morning, everyone. Good morning! (Crowd responds.) Welcome to WPC.
It’s great for me to be back here personally, and I’m looking forward to spending a little bit of time with you this morning talking about how we’re reinventing productivity for the digital transformation.
I want to start my talk this morning by talking about some of the trends that are impacting the way that people are experiencing the reinventing of productivity in the workplace itself, and ultimately how these trends are impacting how we’re developing our vision and our road map.
Now, one key trend that we’re seeing is the need for teams to work better together. In fact, our research suggests that our employees now work on nearly double the number of teams that they did just five years ago.
This means that more than ever, people are reliant and need to partner with others in the workplace to get their jobs done.
Additionally, people working remotely has also quadrupled over the last ten years from roughly 9 to 37 percent.
This is driven in large part by, of course, the mobile revolution and the fact that people are always on and always connected. And when you think about mobility and when you think about the increased need that people have for collaboration, it’s really adding quite a bit of stress to the organization itself.
Additionally, we’re also seeing significant demographic changes in the workplace itself. By 2020, about half of all U.S. workers will be millennials. Millennials are, of course, born mobile, they have a bias to working in teams, and they are heavy, heavy multitaskers.
They also have different expectations and preferences on how people and teams work together. So that’s also shifting the way that work is getting done inside of organizations.
Now, on top of that, employees increasingly complain about information overload and the amount of data that they have and information that they have at their fingertips and how to grapple with that.
In fact, 90 percent of the entirety of the world’s data was generated just in the last two years alone.
And, increasingly, it’s being shared more freely. In fact, according to an external study that we’ve done, 87 percent of senior managers — not junior managers, senior managers — admit to uploading work files to a personal email or personal online storage solution.
Now, likely, the vast majority of these cases are not malicious, but people just wanting to be able to share, being able to get access to their content no matter where they may be.
And so with that, we see Office 365 as really core to delivering on the promise of the digital transformation and reinventing productivity.
So what I want to do is talk a little bit about our vision in this space, how we’re thinking about our road map and our plans ahead.
Our vision itself is really centered on four core pieces: collaboration, mobility, intelligence and trust. And I want to talk a little bit about each of these.
The first, of course, is collaboration. And we will continue to invest in tools to help people work as individuals, but we’re increasingly laser-focused on building new services to facilitate making it easier for people to collaborate in the workplace together.
Here, we’re making deep investments in things like co-authoring of documents and sharing of information and content and real-time voice and video capabilities and in new group collaboration tools.
The second area is around mobility. And, of course, we’re going to continue to do a great job of building things like Word and Excel for iOS and Android and mobile devices.
But the big opportunity that we really see is the notion of the mobility of the human experience.
We aspire that people can be productive no matter where they are as they transition from device to device or scenario to scenario.
And so this means that your data, your apps, your settings, all your content, that should roam with you no matter where you are so you can be productive continuously across your experiences.
Now, Scott this morning and Satya yesterday talked a lot about intelligence and the intelligent cloud.
The notion of intelligence is also very, very core to productivity itself. And, you know, the reality here is that the clock speed of the world just gets faster and faster. Our human capacity to keep up just simply lags behind.
And so we see a huge opportunity with artificial intelligence, with machine learning, with personal assistants and bots to improve productivity, to automate tasks and to help people get insights out of the sea of data that’s out there.
And, finally, trust. Trust is really the foundation upon which everything in Office 365 is built. We are investing deeply in built-in security and compliance capabilities and operational infrastructure to provide an enterprise-grade, hyper-scale platform for productivity.
With Office 365, we have a very, very simple customer promise. Our promise is it’s your data. You own it, you control it, you decide who has access to it. Trust is really a foundational cornerstone for how we think about reinventing productivity.
Now, not everyone may know this, but just last week, Office 365 celebrated its five-year anniversary since the launch back on June 28th of 2011. And so it’s a natural time for us to take a step back and talk a little bit about some of the progress we’ve been able to make.
First, Office 365 is growing faster than a locomotive. Today, over 70 million people, and growing, are using Office 365 at work in their work context every single month. And this while our paid licenses, our paid seats have grown 57 percent year over year.
Now, we’ll share more in a few weeks on our end-of-year results in our upcoming earnings call, but we’re very, very enthusiastic about the growth that we’re seeing with Office 365.
Now, one of the fastest drivers of this growth is the email workload. And, frankly, with your help, we’re seeing fantastic share gains with Exchange Online.
Earlier this year, Gartner reported that Microsoft now has over 80 percent share in cloud email for the largest enterprises, over 10 billion. And that’s just fantastic to see.
Now, that growth itself isn’t isolated. With the adoption and usage that we’re seeing of Office 365, we’re seeing a fantastic opportunity for everyone here in this audience to be a part of the Office 365 ecosystem.
Now, back in December, you may know we released new enterprise value around voice, around security, around analytics capabilities. We’re going to talk more about those today. We refer to them as the Office 365 E5 Suite.
Already, we’re seeing partners making essentially double, almost 1.X more in revenue by expanding their own practices into these new advanced workloads and delivering services and IP around them. It’s really quite a phenomenal opportunity.
Finally, across industries in financial services, consumer packaged goods, healthcare, travel, customers are really embracing Office 365 as a complete and secure enterprise productivity service.
Businesses like Cushman & Wakefield love the idea of standardizing on security, collaboration, voice and analytics all in one package, all on one platform.
But there’s one very unique tech company that just made the decision to move to Office 365. This company is one of the pioneers in the digital transformation. And just like Microsoft, they touch more than a billion people every day with their technology.
I’d like to roll a video to introduce this particular customer.
(Video: Facebook Chooses O365.)
KIRK KOENIGSBAUER: (Applause.) As you can see, Facebook likes Office 365. And to talk a little bit more about their decision, I’d like to invite Facebook’s Chief Information Officer Tim Campos to give you a little bit more. Tim?
TIM CAMPOS: (Applause, music.) Thanks, Kirk. And thank you for having me here.
You know, we’re actually excited to bring Office 365 to Facebook.
The mission of Facebook is to make the world more open and connected. We have over a billion people that use our product every single day.
To support them, we have over 13,000 employees spread over 30 countries worldwide.
My team’s mission at Facebook is to help our employees accomplish as much as possible each day. We want to build the most productive workforce on the planet.
Now, one of the most-defining aspects about Facebook is our culture. Culture, for us, is everything. It’s not just who we hire, it’s not just about what the campus looks like, it’s also about how we get things done, and tools are a key enabler of this.
Key aspects of our culture are things like be bold. Be bold, move fast. Most importantly, move fast.
In fact, this aspect of our culture is the most important. And this is where Office 365 comes in.
Collaboration tools are the most heavily used applications within the company. They’re our critical information systems, which must be available, secure and fast.
Now, our employees are also constantly collaborating with each other online. It’s critical that information is always up-to-date.
Our employees don’t want to spend time thinking about whether they have the latest version of a file or whether they have the right access to a document; it needs to be simple to access, easy and secure.
Now, given how global our company is, it’s also important that our employees can access work from any kind of device. You see, when it comes to technology, we don’t presume to know exactly what our employees need. We let them figure out what works best for them, and it’s our job to make sure that it works as seamlessly and as simply as possible.
People at Facebook are also on the go. And given that they move fast, they need to collaborate wherever they are. So to enable this, it’s important for our employees that our productivity tools are device-agnostic, platform-agnostic and location-agnostic. Office 365 met all of these standards.
Now, with all this mobility comes a need for the utmost security. Security is paramount at Facebook. We need to ensure that only Facebook employees can access our information and only from Facebook-managed devices.
Moreover, our security bar is constantly evolving. Not only did Office 365 meet this standard, but we have confidence in Microsoft as a partner that can meet the security threats of tomorrow.
But what I’m most excited about with Office 365 is the focus on intelligence and analytics.
Yesterday, Satya talked about the notion of bringing data to — how data is going to be able to bring intelligence to information systems. And I firmly believe in this vision.
You see, at Facebook, we’re a knowledge-based company. That means the thoughts and the ideas of our workforce contribute directly to the value of the company.
Our knowledge workers spend over four hours a day in collaboration systems. In that environment, they have the unique challenge of having access to more information than ever before, yet they have to work hard to access that one bit of critical information when they need it.
This is where tools like Delve, Clutter and the Microsoft Graph come in. These tools help people at Microsoft sift through the noise so they can access the most-relevant, most-important information and spend more time working on it and less time searching for it.
What’s cool about this is we can actually also incorporate the Microsoft Graph into our tools. We can teach the graph the difference between what does a sales person need and what does an engineer need. And then we can use the Graph internally to rank our own data.
Finally, collaboration and technology in general is evolving. Our workforce expects to be on the latest, most-innovative technology. And collaboration patterns are changing along with it.
As employees shift away from just communicating over email to using other things, we need good partnership — partnership from industry leaders. And in this, we’re really happy to see that Microsoft has actually gotten its mojo back.
We expect that Office 365 will continue to evolve, and as it does, will keep adding features and rolling them out to our workforce.
In this, what we’re essentially doing, we’re not just buying Office 365 for what it can do today, but what it will bring tomorrow, what Microsoft will bring tomorrow, and we have great expectations for what that will do.
Thank you. (Applause.)
KIRK KOENIGSBAUER: Great job. Awesome. All right. Thanks, Tim.
Hopefully that gave you a good glimpse into what Facebook is doing with Office 365.
Now, earlier, I referenced some of the new enterprise value that we’re investing in. I want to take just a couple quick minutes to talk a little bit about the road map and some of the innovations that we have in this space.
First of all, security. With Office 365, we are delivering built-in intelligent security capabilities directly into the service itself. This is a unique and significant investment opportunity given the customer demand we’re seeing for this particular space, just like you’ve heard Tim talk about at Facebook.
We’re making a number of different investments here. Advanced Threat Protection to help protect against unknown threats in your email, URLs, in attachments.
Things like advanced e-discovery that uses machine learning to help customers with their discovery process, make it much more rapid, make it much more easy for them to get to the legal content that they need.
Customer Lockbox to offer audit control over content.
And just recently, we launched the Advanced Security Management System, or ASM, in fact, just on June 1st. ASM gives admins visibility of potentially high-risk behaviors.
So, for example, think of a scenario like identifying when a single user account is mysteriously logging into the service from multiple geographic locations all at the same time. With ASM, customers can proactively prevent attacks like this.
Now, at every customer meeting we go to, we’re seeing security at the very, very top of the agenda. This is a red-hot category, and we think it’s one really, really ripe for partners to help coach and advise customers through the security journey.
On the analytics front, we’re really focusing in on two areas with these new advanced capabilities. The first is to deliver advanced analysis and data visualization and ultimately put insights into the reach of everyone inside of the organization.
Now, Microsoft is already the leader in the business intelligence space with the world’s most frequently used BI analysis tool, Microsoft Excel.
But we’re taking that further now by including Microsoft Power BI Pro into Office 365. And, in fact, we’re increasingly integrating Excel and Power BI together.
Just recently, we launched new add-ins to publish Excel objects directly or to pin them directly to Power BI, things like charts, things like pivot tables, things like cell ranges. You can create dashboards with them.
We think this is a big opportunity to help customers for partners in creating these kinds of dashboards, creating these kinds of solutions.
Now, additionally, there’s a new category that we’re investing in called Delve Personal Analytics. We’re really excited about this.
With Personal Analytics, it’s a new service to help people better manage their time, their meetings and whom they are collaborating with.
Backed by the Microsoft Graph, again, the Microsoft Graph so important in terms of data and analytics. Personal Analytics is an Office 365 sort of Fitbit-like service to help people improve their productivity.
We’re going to show you a demonstration of this in a couple of minutes, but we’re really excited about this new category.
Skype. We are also making massive investments in Skype to deliver a fully cloud-based communications service.
This includes the most-comprehensive set of capabilities around things like chat, voice, HD video, conferencing, meeting scenarios.
And what’s really unique with Skype for Business is that a company can now move its entire PBX system, its entire PBX infrastructure to the cloud, including PSTN services.
In fact, Skype is really the only solution on the market today that’s fully cloud-based for real-time collaboration and communication.
This creates benefits and opportunities not only for end users to better collaborate and better stay connected, but there’s also significant opportunity for companies to reduce costs and to significantly reduce the complexity of their infrastructure by moving to a fully cloud-based solution.
We also see a massive opportunity for partners. The professional and managed service opportunities around this enterprise voice space is massive. We estimate it over $50 billion in the next three years alone.
Now, I know there are a ton of SharePoint partners here in the audience. Any SharePoint partners here? Yes. Of course. (Applause.) Awesome.
We’d be remiss not to highlight a couple of the opportunities that we’re seeing around SharePoint. Jeff Teper and team in May just rolled out a new vision for SharePoint and a new set of investments and a road map over the coming six months. And there’s a lot of really great stuff that’s happening.
First, there’s a whole new set of mobile applications, a new SharePoint Sites app that allows you to essentially have the notion of the Internet in your pocket.
There’s a new mobile experience also for OneDrive. You’ll find now that the OneDrive thin client is rock solid.
You’ll find that there’s also a new, simple, modern web experience that enables fast site creation that is a much better experience for end users.
And, finally, we’re doing a ton of work around integration extensibility opportunities. With PowerApp integration and Microsoft Flow integration, there’s now a significant opportunity for partners to add value-added solutions on top of Office 365.
Now, with that as some context, I want to take a couple minutes to show you some innovations in this space. I’d like to introduce Catherine Boeger who’s going to lead us through a couple of cool demos. Catherine? Go ahead.
CATHERINE BOEGER: Great. Thank you, Kirk. Good morning, everybody. (Applause.) Great to be here.
So in the next 10 minutes, I’m going to show you some of the great innovation Kirk spoke about across mobility, security, intelligence and voice.
But I’m going to start in SharePoint. As Kirk mentioned, we have an amazing SharePoint partner ecosystem. Together, you generate $10 billion a year in SharePoint services. That’s awesome.
So here I’m going to start by showing you my company portal. This is Microsoft’s company portal. I start my morning here most days. And it connects me with all the 100,000 employees across the company. It’s running on SharePoint Online and, obviously, is a beautiful site with rich media content.
But what’s really exciting is I now have that same experience on my phone.
So here is the SharePoint Mobile app. And let me go right into my company portal. Might take just a quick second to load. And this is MSW on the phone. It’s a beautiful, rich site with animations and video. So I can stay connected to everything going on across the company from my phone.
In addition, I have all the sites that my company thinks are important for me to be productive on the go as well as those sites that I own, I frequent or I follow.
So as Kirk mentioned, I have the Internet in my pocket with SharePoint, and I can be productive no matter where I am.
But that’s just the start of being productive on the go. I don’t know about all of you, but I tend to do a lot of email, and I love doing it on my phone.
So I’m going to go to my Outlook Mobile app. Outlook Mobile is an amazing email experience. It makes it easy to connect me and stay on top of my inbox where I am.
Quickly, I can triage my mails, I can schedule my appointments, I can stay on top of my calendar, make sure I’m where I need to be. And what I really like is that I have both my personal and my work account all within the same app. So I can stay on top of my personal information and my work details.
But what my company likes is the great security functionality that Outlook, when connected to Office 365, provides.
It provides protection against malware, phishing attacks and, as Julie talked about, keeping company data within the company.
So let me show you a couple of examples. This is a mail I got from Ben. It made it through my firewall. And there’s nothing obviously malicious or concerning about this mail.
But what we’ve seen lately with advanced phishing attacks is URLs are updated after the fact. And they’re set to malicious sites.
So with Advanced Threat Protection, as I click on this link, Office 365 is going to check this site and make sure it’s still secure.
What you can see on screen is that it’s not. This could have compromised my company credentials. But with Office 365, I’m safe.
Now, let me show you another example. So I’ll go back to my email. So this is how EMS helps protect company data.
So I have just had the conversation about this acquisition last weekend with my friend Alissa. I’m going to open this mail up and I’m going to copy the details.
So I’ll select all. And then as I mentioned, I have my personal and my work accounts. So Alissa’s a friend, and I’m just going to go and paste this in, start a new mail.
But what you can see is I actually don’t have paste functionality enabled. That’s because EMS knows that was company data and I shouldn’t share it in my personal apps.
Again, keeping the company data secure.
So now let me switch to the admin view. This is a view many of you are familiar with, but this is the new, advanced security management functionality that Kirk mentioned.
This gives me better visibility and control of my Office 365 tenant. But what it quickly shows me is any anomaly that’s taking place across Office 365.
And you can see here there are a couple. But I’m actually going to zero in on this high-severity issue.
What I can do is I can just double-click and get more information about what happened, take a look at this risk score of 86 percent, and in reading the details, it definitely seems like something I should be concerned about.
So right from here, I can take action and suspend that user. Again, giving me control and quick opportunity to keep my environment safe.
So those are some security examples of Office 365. Now, we talked about intelligence. So I want to go into intelligence and talk a bit more about how the intelligence in Office 365 gives me the information I need to make better decisions as well as tools to help me be more productive.
So this is a new category called Personal Analytics. It’s built on the Microsoft Graph and takes the signals I make each day and shows me how I’m spending my time.
It gives me a dashboard view of the time I spend in meetings, on email or after hours. And it even gives me more detail so I can optimize, for example, in those meetings where I’m multitasking and are not as productive for me and the other participants.
So with some quick steps, I can better optimize my time.
So that’s just one example of intelligence. I’m going to show you what the intelligence in PowerPoint looks like.
So this is a PowerPoint slide. And what I’m going to do quickly here is just insert a couple of pictures. Since we’re in beautiful Toronto, I picked the Toronto skyline and Justin Trudeau, the Prime Minister of Canada. And I’m going to connect, click those, point them in, and look at what PowerPoint Designer, through using intelligence, surfaces up for me. It gives me these amazing design options by looking at the pictures I’ve inserted.
It’s smart enough to know the color schemes that will make sense, as well as the fact that Justin’s face should be a focal point.
So in just two clicks, I can have a beautifully designed PowerPoint helping me get my work done more quickly. In addition, with much higher quality than I could have done on my own. (Applause.)
With that, you saw I spend quite a bit of time in meetings from my analytics dashboard. And I’m going to switch to show you how we’re enhancing the meetings and voice experience.
To do that, I’m going to go to the new Skype for Business Mac client. This is something that I’ve heard a lot of feedback from customers and partners on wanting to make sure we have a great Skype experience for the Mac. So here it is.
With Skype for Business on the Mac, you have the same Skype tools that you would expect like your contacts, your conversation history, your IM and presence, and of course you can join meetings.
So let me quickly join this meeting. I think I have a few friends who are going to join with me. So I’ll say hello to them. I’ll start my video. Hello.
And so as Kirk mentioned, this is actually running PSTN conferencing service. You can join directly from Skype, or as you can see, you can also join with a dial-in number. This gives you a great opportunity to reduce your monthly conferencing costs for yourselves or your customers and to work with your customers simplifying their voice infrastructure.
Hey, Carrie. Hi, Ben. Thanks for joining this morning.
But sometimes it’s not about having meetings with just a couple of people. You want to reach thousands of attendees.
So now I’m going to show you how we make that possible with Skype Meeting Broadcast.
Skype Meeting Broadcast makes it very easy for any of us to produce, host and broadcast meetings to thousands of attendees.
What you’re seeing right now is my producer view. So I can stream live video or I can use a video that was already recorded, which you see here. And you can put in content, any content.
I can quickly make this video active for broadcasting, and then I can choose my layout. I can actually change this layout as the meeting is going on as well to optimize the experience.
So right now, I’m going to start this broadcast. So that’s all I have to do, a couple clicks to produce a meeting, start the broadcast. And what you should be seeing on-screen right now is the attendee view. Just like that, I’ve been able to create a broadcast meeting for thousands of attendees.
And what’s even more exciting, I think what you’re seeing up there, is the fact that by the end of this calendar year, we’ll have closed captioning and real-time translation in preview as part of Office 365 so you can reach thousands of attendees no matter where they are around the world. (Applause.)
So those were just a few out-of-the-box capabilities of Office 365. And just the start of the amazing solutions you can build to customize and meet your customers’ unique needs.
With that, back to you, Kirk. (Applause.)
KIRK KOENIGSBAUER: Thanks, Catherine. It’s also Catherine’s birthday on Sunday, so happy birthday, Catherine.
We’ve had an opportunity to talk a lot about the momentum and the road map for Office 365. However, I want to be clear, we couldn’t have gotten here without the help from everyone in this room. And we need your continued partnership to really drive the digital transformation with our customers.
Scott mentioned the Cloud Solution Provider program earlier this morning. With CSP, it’s a great way to help you win your new customers by bundling your own services with Office 365 or Dynamics 365 to own that customer relationship end to end.
Hopefully, you’ve got a sense, too, of the massive user growth that’s here and how that can really help with delivering managed services and the opportunity that we talked about there.
Finally, with the Microsoft Graph, things like SharePoint, our extensibility model, there’s significant opportunity for partners to build solutions on top of the Office 365 platform. In fact, the number of solutions built on Office 365 has tripled in the last year alone, and we expect that just to continue going forward.
So the last five years of Office 365, it’s really been only the beginning. Collectively, we have an incredible opportunity ahead of us. Your partnership is central to our shared success and we can truly achieve so much if we work together. So with that, I want to thank you for your time. I want to thank you for your feedback and thank you for your support.
Let’s enjoy the ride on Office 365 together. Thank you.