Satya Nadella: WPC 2014 Keynote

ANNOUNCER: Ladies and gentlemen, please welcome Microsoft Chief Executive Officer, Satya Nadella. (Applause.)

SATYA NADELLA: Thank you so much. It’s fantastic to be here at WPC. I hope you all have had a fantastic couple of days. Lots of great keynotes, sessions, networking, and good old-fashioned fun.

Congratulations to all the German fans out there. (Cheers, applause.) I know you got here early to watch the game, and hopefully you’re recovering. (Laughter.)

For me, it’s just such a pleasure to be at WPC. Having grown up all my life, it seems like, definitely all my adult life at Microsoft. I have marked the passing of time through all of these events. Partner events and developer conferences, pretty much I look at my 22 years and look back, both the birth of my kids as well as the shift in our platform.

And that’s how I feel when I come here. You know, to come back to a familiar place and in this new role, for me, it’s an amazing privilege.

So I wanted to start with a big thank you. I have worked in so many products throughout my 22 years at Microsoft. And there’s been one thing constant about this: They have pretty much all been partner led. That is at the core of what we have done as a company. We’ve always built products and experiences that lend themselves for this great partner model of ours and this great ecosystem.

And, to me, saying a thank you from the bottom of my heart is how I think I want to start. It means a lot. What you have done in terms of the feedback you give us, the push you give us, that constant pursuit you have for customer success. Many times you’re critical of us. And that is what I believe has pushed us collectively to have all the success over the years.

And it’s just not the business success. In fact, I can remember back to the launch of the first version of Windows NT to now how the stories of partners have inspired us. It’s the impact that partners have had that has inspired us.

And so I want to talk about some of them today. The first person I want to reference is Juan Rodriguez, who is here with us. (Cheers, applause.) And Juan’s story begins in Venezuela. He came to the United States at the age of 14. Started his first consulting company teaching DOS in the early part of 1990 during a recession. I remember that very distinctly because that’s when I entered the workforce.

And since then, he’s had a tremendous amount of success. In fact, he’s got four thriving consulting businesses in the Los Angeles area doing everything from our server products to Office 365 and Azure. So you kept up with everything that we’ve thrown your way and thrived.

But perhaps more than anything else, the thing that you’ve done that inspires me is what you’ve done to teach 30,000 individuals technology. That is impact. And, Juan, we thank you very much for that. (Cheers, applause.)

So let’s move continents. Let’s go to Dan Scarfe of Dot Net Solutions in the U.K. (Applause.)

Now, Dan started really early. He wrote his first computer program in BASIC — Bill will be proud of you — at 12. And he fell in love with app dev. I mean, who doesn’t? But he did.

And since then, he’s been writing applications for customers across all the various platforms. And just last year, he’s turned his focus to writing applications which are Web experiences for a mobile-first world. And guess what? He’s had his best year ever. He’s had 300 percent growth building those solutions. That’s the kind of growth we all can see as we renew our own skills and our own opportunities. Thank you, Dan, for what you’ve done and what you’re doing. (Cheers, applause.)

And the last partner I want to talk about is Hattam Salam (ph.) from Dubai. He has a business in Egypt. He works in many parts of the Middle East. He’s an education partner of ours. Education, as you can imagine, if you want to have impact in society, education is the place because you really change outcomes of life. And he’s built this connected gateway solution which is getting deployed in many parts of the Middle East. In fact, in Qatar alone, from what I understand, you have 125,000 students and 15,000 teachers who are really changing how content and courseware is delivered, and more importantly, how the effectiveness is measured. And that means you’re changing outcomes. And that’s a SharePoint-based solution, now it’s available on Azure.

But the thing that you’ve done is that pursuit of building solutions that can have that broad impact on society. And education as a vertical, as an industry, as a part of an economy is something that I think we as an ecosystem have done great work. And, in fact, if anything, we get to do more going forward. So thank you for that, Hattam, and congratulations. (Cheers, applause.)

I know there are many, many more stories. Many, many more inspirational journeys that are represented here today. And all of that is what I think makes this ecosystem what it is.

So that’s the inspiration. That’s the confidence. That’s the push with which we move forward to this mobile-first, cloud-first world.

I’ve talked about this in a couple different places. In fact, you know, living amongst 30,000 computer scientists at Microsoft, you always get a mail once a day where somebody says, “Hey, do you have a problem with ordinal numbers? How can two things be first? Can’t you sort?”

And then you kind of look at it and say, “Yeah, this is one of those places where the sorting algorithm doesn’t work.” Because it is true that without the cloud, there is going to be no mobile experience. It’s not about one device, it’s about mobility. The cloud orchestrates it, but without mobile end points, be they sensors or mobile devices, you’re not going to have the impact in the world and people’s lives.

So you have to think about this next generation of computing as mobile-first, cloud-first. And our goal, simply put, is to thrive in it as an ecosystem. It’s a tremendous opportunity. We see it today. There are going to be over 3 billion people with connected devices. There’s going to be over 200 billion sensors out there. The amount of application development that spans all of that computing is going to explode. They’re going to both generate tons and tons of zettabytes of data, they’re also going to consume and reason over that large data.

All of this, at the end of the day, results in an explosion in spend and a shift in spend. As a percentage of GDP, IT spend is on a secular increase. I mean, think about it. That’s one of the things that makes being in this industry real fun, because there is not a sector of an economy, a vertical industry, a person’s life where software and the devices that are powered by software are not touching. That’s our opportunity.

But the real question that needs to be asked, as well as answered, is: What is it that we can do as an ecosystem that is unique, that is impactful? And, to me, the answer is clear. We are the company and the ecosystem that will build productivity experiences and platforms for the mobile-first, cloud-first world. We are the company and the ecosystem that is going to reinvent productivity for this new generation. We’re going to empower every individual and every organization to do more and achieve more. That’s our singular mission. That is something that’s unique to us. That’s in our core, that’s in our soul, and that’s what we’re going to go do.

Think about it. In all this abundance of computing power, what is scarce? It’s human attention, it’s time. For us to reinvent productivity so that every individual on the planet can get more out of every moment of their lives is a great mission. That is what we need to go solve. That is where we get to add value.

The other place with all this abundance of applications, data, devices, also comes complexity. We are the company, we are the ecosystem that can harmonize the various interests of individual users and people, IT, and developers. Bringing those interests together so that people and organizations can achieve more and do more is something that, again, we can do. That’s the platform sensibility that we’ve always had, and we’re going to have to bring that to this world of mobile-first, cloud-first.

And to go after this, we’re going to do one thing: We’re going to get very focused on building on these digital work and life experiences, this next generation of productivity broadly defined. And everything else we do supports it. We will build platforms in the cloud for it, we’ll build platforms on the device for it. We will make sure our experiences are pervasive and ubiquitous. We will make sure that it’s possible for you to be able to build the solutions across the various industries. That is what we’re going to do. It’s not multiple strategies. It’s not multiple things of focus. It’s one core that represents the best of what we have and what we represent, but more importantly, the boldness with which we can go forward in redefining it.

So let’s talk a little bit about each one of these. When it comes to digital work and life experiences, the thing that we’re going to do is start by building great experiences individually. That means we’re going to have fantastic e-mail, great file sharing, great communication and collaboration. So these are all the brands that you know and love. There’s Skype, there’s Outlook, there’s OneDrive. But it’s just not about any one of these applications. It’s not the application silos themselves. We are building an operating system for human activity across all of their daily lives, across all of their devices. That is what the future of Office, the future of Dynamics represents for us.

We’re building out that digital infrastructure that ties together people, their activities, their relationships to all of the artifacts of their life, be they photos or documents at work. That is what digital work and life experiences means.

We’re going to do the best job of being able to enable dual use. This entire notion that somehow I’ll buy my device for consumption and personal use and then I’ll give up that device for work and take another device just doesn’t work. We know that. And simply saying even just BYOD is not good enough. We’ve got to harmonize this dual usage. We absolutely have to be the best in the world when it comes to taking Skype and Lync, OneDrive and OneDrive for Business, Outlook and Exchange, and every one of these experiences and the shell and the operating systems in Windows all have to be built to excel for this dual use. And that’s what will drive productivity.

If you think about it, at the end of the day, it’s not just about I want to be productive, not just at work, productivity is not this niche. In fact, it’s the most secular, broadest category of computing. I want to get more out of my time. I want to be reminded when I come home — because of the geo-fence reminders in Cortana — of what it is that I should tell my daughter, because it knows that tomorrow is a recital for her.

It’s the ability for us to be able to reason over all of your data in a personal way and to give you back that moment and create those moments of productivity.

We are going to have our experiences on all platforms. That means every home screen out there. Our aspiration is to have one or many Microsoft icons, Microsoft digital experiences. They’re all entry points for us as an ecosystem. So that means we get to have an opportunity to be able to have anyone entering from any device into our ecosystem. That’s our promise with which we’ll move forward.

So let’s talk a little bit about our cloud operating system. We have an amazing opportunity ahead here. We’re the only company that’s going to build that enterprise-grade infrastructure that meets the realities of the geopolitics of the world, the regulatory regimes of the world, and yet give them the hyper-scale economics. So that means we are the company that can provide the datacenter back plane for all computing needs of a complex enterprise. Private cloud, public cloud, and hybrid cloud.

Some of the things that you saw in earlier keynotes, especially when it comes to how you can take your current virtual machine estate, VMware or Hyper-V, and yet get disaster recovery from Azure. How you can tier your storage with something like StorSimple. Those are pretty unique things. That is, in fact, adding value to your IT dollars spent today, as opposed to just trying to rip and replace an entire architecture.

That notion of providing that one infrastructure back plane is, I believe, one of the biggest benefits that this ecosystem can drive in the marketplace.

We’re also going to have the most comprehensive end-user infrastructure. So this is spanning device management, identity management and data security. I can’t be more excited about Enterprise Mobility Suite. It’s a fantastic piece of technology. It’s got lots of road map ahead. But it’s the place where we will shine because the complexity that exists for the IT, as there is more bring my own device, as there is more adoption of SaaS applications, as there’s more cybersecurity incidents in your organization, you need this control plane.

And what we have done there by bringing one architecture across identity management, device management, and data security makes it very powerful to manage this world of multiple device platforms and multiple SaaS applications.

And when it comes to big data, we’re going to have a very rich big data platform out there. It’s going to be comprehensive. We’re going to have all of the storage capabilities for SQL and NoSQL. We’re going to have all of the processing capabilities on top of it from screen processing to even machine learning. But the place where we are going to truly shine is going to be around insights.

At the end of the day, any organization that wants to thrive with data needs to provide for a culture of data. And that’s not going to happen if you don’t have those end-user analysis and visualization tools. You know, what is a better tool than Excel to start with? So we’re taking everything that we’re doing around Power View, PowerPivot, and even Power Q&A, which is now a natural language way of being able to ask questions and get answers, and integrating it into the tools that people use on a daily basis, be it Excel or SharePoint. And that’s the place where we as an ecosystem can truly help organizations be more productive because of a data culture that we’ve enabled, not just big data.

The last thing that I want to talk about when it comes to the Cloud OS is perhaps my favorite, because I grew up with this, is modern application development.

First of all, we have built out everything that we do even in our digital work and life experiences such that it’s a developer surface area. So that means when you have contacts in Exchange, when you have your calendar in Exchange, when you have SharePoint lists, even the data in OneNote, all that are APIs, all that is exposed as APIs. So you can build solutions using it.

That is where our developer platform starts. In fact, the most strategic developer surface area for us is Office 365. Obviously, that even gets to Dynamics. And then around it, we’ve built this very rich cloud infrastructure in Azure. We have these rich higher-level services for handling mobile back ends, Web back ends, doing media, doing machine learning and advanced analytics, all forms of data storage and processing. That gives you more capabilities as a developer.

But at the container level or the virtual machine level, we have really made sure that it’s a very open platform. It’s not just about .NET and Windows, which we obviously do a great job of. Around 15 percent of Azure today has Linux and various packages of Linux. And so that means we have the most open infrastructure for any kind of solution. So we want to thrive in this heterogeneous world when it comes to the public cloud. And that’s the opportunity for us when it comes to application development.

But we don’t stop there. We have done our best work in building out the tool chain. What we’ve done in terms of the productivity of the developer — because think about it, what drives your profitability, your ability to do more, is the productivity of your own developers and your own employees. And with Visual Studio Online and TFS, we’ve taken what is source code management, build, project management, the entire dev/ops process, and modernized it, made it easy. Really plumbed it through all the way into the IDE of Visual Studio.

That kind of richness is what will help you drive your business forward, take on more, take on more ambitious projects. And so I’m pretty excited about what we can do with the Cloud OS together.

The next thing I want to talk about is Windows. Windows and our hardware, our first-party hardware. The goal for us is to have them take our digital work/life experiences and have them shine.

This means the shell, what we do with our privacy policies, what we do with inking, what we do with our first-party hardware when it comes to touch, when it comes to pen, all of those things are optimized for this productivity experience. That’s where we will be unique.

We will, of course, have all the consumptive experiences. You will have Pandora, you will have video, you will have all of the places where you can enjoy the consumptive experiences, but we will shine in these productivity experiences. That’s what the role of Windows is and the role of our first-party hardware.

I want to be very clear, the goal with our first-party hardware is to create categories and create markets. But we want to stimulate demand for the entire ecosystem. Tony Prophet showed you the lineup even going back to school and the holiday season. It’s a fantastic lineup. We want to be able to show the way for that.

The uniqueness of Windows comes because of what we put into the experience of it across all sizes. That consistency you saw is going to matter even more. Not just because you can, in fact, have one application with consistent experiences across different screen sizes. It is also because, increasingly, we’re going to live in a world where a single application is, in fact, going to be distributed across multiple of our devices. And as that happens, you want that consistency.

You don’t just want that consistency in terms of the end-user experience, you want even that consistency for the IT experience, that control plane to manage security. You want that from a developer standpoint. This notion of universal Windows apps is a very powerful concept because we’re now aggregating the 300-plus-million-socket run rate of Windows into one opportunity for our developers.

That, to me, is what makes Windows unique. And that’s what we’re going to get focused on. That’s what we’re going to drive on a constant basis.

We’re also going to stay on the forefront of making Windows stand out as the most-personal computing experience. It first means we’re going to stay in the forefront of innovations around input/output: touch, gestures, speech, and many more. We’re at the threshold, in fact, with the Windows Phone that I have today, I am speaking to it a lot more than I have ever spoken to Windows. And that’s just going to keep increasing.

So we will bring these more human ways to interface with technology. And that’s the place where what Microsoft Research has done and what the Windows team has done is pretty innovative. In fact, we learn from things that we’ve done in Xbox and Kinect, and now they’re making their way in a mainstream way into the Windows experience.

But it’s not just about the technology. We’re going to go at this knowing fully well that users are going to care, and care increasingly more, about their data and their privacy and being in control of it. We want Windows to stand for that user-controlled privacy. We want it to shine when it comes to be able to really have the user in control of experiences like Cortana, where you really need to be able to trust this agent that it’s working only on your behalf, only when you give it permission. That, to me, matters, and will matter a lot more to all our customers and all our users.

So let’s pull this all together. Let’s look at what we can do in terms of reinventing productivity and building platforms in this mobile-first, cloud-first world. Think about what we can do to transform organizations, starting with individuals. What Cortana can do for you personally both in your life and at work? What Outlook or OneDrive or OneNote can do for you?

But it’s not just about the individual. We all live in groups both at work and outside, it’s the family, it’s the soccer team, it’s my work group. You want to be able to have the tools that enable you to communicate, collaborate, share. Things that we do with Skype, Lync, SharePoint, all available to you for that kind of collaboration.

And we don’t stop even at the team, but it’s about business process. Because, really, if you look at your daily life, you have things that you do in your life, there are things that you do with your work groups, there are things that you do in terms of advancing some business process. And we want to be able to bring all of that together and harmonize all of that together. And to do that, we want to have that consistency of our IT experience, the consistency of the developer experience. That’s what we as an ecosystem can do for any customer of ours, any individual customer or an organizational customer.

So I want to show you some of this. I thought a lot about, you know, there are a lot of things in our labs that are advanced technologies. And since when you’re doing the vision thing, you can get to choose anything that’s far out and talk about it.

But I chose to sort of think about things that are pretty near term, but are transformational in terms of what we can do for our customers.

So I wanted to invite up on stage Steve Clayton, who is a colleague of mine, to help me with some of these demos. And we want to start off, first, by talking about this phenomenon of Internet of Things. We all know, we talked about the fact that there are going to be 200-plus billion sensors. And when you really think about it, it’s really the Internet of Your Things, right?

So when you’re talking to a customer, they have these things in the field. And for the first time now, in a cost-effective way, they can put compute on them and collect data back from them so that you can reason over it.

Now, that all sounds great, but what’s the purpose? The purpose is, of course, business model transformation. Think about what an elevator company now can do when you have the ability to have real-time access to the status of all the elevators in the field that you have and the service contracts, the insurance on those service contracts that you can write.

It can be transformative to any customer of ours in terms of the business model. And that is something that now we enable by bringing together Windows Embedded solutions, our Intelligent Systems Service in Azure, which allows you to collect that data and put it into and process it in real time.

And then we have this Azure Machine Learning Service, which is an amazing service which I think previewed at this conference. And that service allows you now to do advanced predictive analytics because we all need these data scientists, but you also want to have the power of what we have when we do speech recognition or voice or vision or even Bing, and take all that sophistication for applied ML and make it available for every one of the data scientists that’s in your organization so that they can do these advanced predictive analytics.

So to show you some of this in action, Steve, why don’t you take it away?

STEVE CLAYTON: Sure. Good morning, Satya. So we’re going to start inside of ThyssenKrupp’s global asset monitoring system. So the dashboard you see here has been built by ThyssenKrupp, with their partner, CGI.

Now, ThyssenKrupp is a global elevator company that has 1.1 million elevator assets around the world. And what anybody inside of their organization can see from this dashboard is a real-time view of what’s going on across that landscape of assets. So this literally is real-time data coming from sensors inside of elevators that’s been pulled into the Azure Intelligent Systems Service, and then populated into the dashboard.

So we have an orange circle up here, an orange traffic light in the Pacific Northwest. We’re going to drill into this particular one. And you can see as I scroll down on the map into this region, the data is changing in real time beneath us.

So the alert that we have is right down here in the Virginia Mason Athletic Center. The Virginia Mason Athletic Center, it turns out, is the training facility for the world champion Seattle Seahawks. Seahawk fans? (Cheers, applause.) That’s always a crowd pleaser.

And what you can see on the dashboard now is that we have a view into the schematics of the layout of that building, we have the real-time information of the elevators moving and in action. All of this coming from sensors into the Azure Intelligent Systems Service.

As I scroll down a little further, we can see some more details of what type of elevator, where the elevator’s located. So we have some freight elevators, passenger elevators.

The thing I’m really interested in is this predictive health of 70 percent. And you talk about machine learning, and this is really where we get to kind of the gold mine of this data, if you like.

So we’ll drill into that elevator we want to take a look at. It’s the field access elevator that has a predictive health that we want to take a look at.

SATYA NADELLA: This is a solution that CGI built.

STEVE CLAYTON: Absolutely. CGI built this in partnership with ThyssenKrupp. Anybody inside of the organization is now able to get. Again, that kind of real data culture that we talked about, be able to access information in real time.

So we can see the type of elevator. This one is a freight elevator. We can see the model. We can also see some of the real-time data around the landing spaces. So we can see this elevator is being called most frequently from the ground floor, as you might expect. But also real details, sensor-level details. What’s the average door-close time? What’s the average door-open time? All the types of things that move their business from being in reactive maintenance mode into proactive. And that’s, ultimately, where they’re trying to drive their business into being much more proactive.

But two things I’m really interested in on this particular part of the monitoring system is that predictive health of 70 percent. And then beneath that, you’ll see that there’s a critical alert that’s coming from Azure Machine Learning.

Now, the predictive health arises from taking all of the previous data of events and issues that have happened with the elevators, and then running a machine learning model so that we can start to learn, well, why did that event happen?

So we do two things with machine learning. We reason over the data to find out why did something happen in the past, and then we can use that same data to predict, well, when might that happen again in the future?

So we’ll move over into the Azure Machine Learning Workspace, into our machine learning workspace here. And you can see the model that we’ve run. So we’ve taken data at the top, it’s a CSB file, feeding it into something called a multiclass decision jungle. Inside of the machine learning workspace, we’ve got world-class algorithms, the type of algorithms that are being used inside of Cortana, inside of Bing, so we can start to apply reason and learning on top of this data.

And then we train the model and we score the model. Ultimately, what that results in, if we visualize the output of this model, what this is telling us is that it’s able to predict by using machine learning, looking at past data, we can predict with 75-percent accuracy.

SATYA NADELLA: And this is breakthrough stuff. Because think about it, in fact, the first time I saw this kind of tool, I was working in Bing engineering and we needed to drive productivity of our own relevance and data science. And so we built all this tooling to do applied machine learning at scale. And the vision that we’ve had is how do we take all of that and make it available? Because now data science is not just for the consumer Internet company. Data science and the tooling around it is for every industrial Internet application. And we have that unique capability of taking what we learned in a very different segment and applying it now through the partner ecosystem to pretty much every industry vertical with advanced analytics capabilities.

STEVE CLAYTON: That’s right. And where that really pays off at ThyssenKrupp is what you see on the dashboard right now.

So at the moment, we have a predictive maintenance warning. We have a schedule of when we’re planning to do maintenance on those elevators. So, currently, planning to do the scheduled maintenance on the 24th of the month, but by taking that machine learning, by doing predictive analytics, we’re able to say, actually, we need to send an engineer out three days earlier to carry out that maintenance, because we can predict with 75-percent accuracy that an issue is going to arise.

So that’s where it really starts to change dramatically ThyssenKrupp’s business, moves them into this proactive maintenance mode, and out of the reactive maintenance mode.

SATYA NADELLA: Great. Now, you know, that gives you a flavor for what kind of an application you can build. (Applause.)

For an opportunity like Internet of Things, because I think that this is one of those opportunities over the next 10 years, will play out in a pretty big way. You can think of this as the new class of tier-one applications that are going to be born in the cloud, where people are going to rendezvous their data from their field devices, reason over it, and the business model that you can have, those models that got created, you now have a continuous model of upgrading and improving that model.

So the business model, you’re not just building a project and leaving; your project is a project that continuously drives business transformation because you can expose that model as a set of APIs for the various applications that use it.

But one of the other things that we also see is there are these new classes of tier-one applications, we also see this explosion of mobile apps. You are seeing that now in every enterprise.

So we want to enable you, especially on the edges, where a business unit or even an end user wants to build an application rapidly. Think about even the elevator company scenario. Say you want to spin up a field service app that’s very specific for a particular role in a particular business process scenario. You want to have access to, in fact, all the APIs in your SaaS application. So you want all the APIs with data inside of Dynamics, inside of Office 365, inside of this IOT application you built. You want to have access to it. And you want to be able to churn out these apps, which are very task specific at a pretty rapid rate.

And that opportunity is something that we want to enable. So we built a tool called Siena, which is available in the apps store for Windows today. And our vision with this tool is to bring this next generation of rapid application development for the mobile-first, cloud-first world, where you’re able to take SaaS applications that you built as well as customer uses and the data behind them and convert them into apps that end users themselves can build. So why don’t you show us Siena?

STEVE CLAYTON: Sure. So we’re going to carry that scenario forward. We’re going to build an application that’s our field service engineer. We want to get rid of these things and start to have more of these things out in the field, so mobile devices, mobile applications that are cloud-first, mobile-first applications.

So I’m going to start inside of Project Siena. And very quickly with my PowerPoint skills and my Excel skills, build an application.

I’m going to connect out to a data source. I’ve got multiple different data sources here. Data sources that are out on the Web, things like Facebook, things like SharePoint inside of the organization, I’ve also got applications, as you would expect, like Dynamics, Coursera, so a whole set of different back-end data interfaces I can connect to.

My data is set at the moment inside of Azure, my Azure Mobile Services. So I’m going to select to import my data. That imports from the cloud, and I’ve got my actions, my sensors and my jobs. So I’ll give it a second to import.

OK, so I’ve got actions that I’m going to carry out, I’ve got sensors, and I’ve got jobs.

Let me just make sure that we’ve got our data fully imported, and then we’ll start to build our applications. This is my first screen. So I simply click over. I’m going to say I want to make a connection to Office 365.

So this is something that’s coming in the next preview of Siena, the ability to connect directly into Office 365 and build applications on top of that rich platform.

So in Office 365, I’m going to add my meetings. This is my shared calendar. It’s the database of jobs that my engineers are going to go out into the field and carry out.

We’ll add in a second screen, and then I’m going to create the connection from this first screen over to the second screen. So my engineers select their job, and we’ll do our first run of the application. It’s a very, very simple application. But in a minute, I’ve built the rudimentary basis of my application.

So I click from a job, take me to the second screen. But now let’s start filling out the capability on that second screen. And that’s where we get to replace the clipboard and we get to replace the camera that my field engineer is currently using.

I’m going to drop a control onto the page, and that control has the camera. It has a couple of buttons that we’re going to have on the side, we’re just going to shift these around, make this a little bit more usable. You drag these out to the edge, make them slightly larger, because these are going to be the buttons that my engineer uses on that mobile device.

And then we’re going to start to wire our application up to the data that we have on the back end. So what I’d like to do first is to make sure that the job that I’m about to take a photo of is the one that the engineer has selected. So simple Excel statements.

SATYA NADELLA: This is just the exact Excel syntax. So if you can build an Excel spreadsheet, you can build this app.

STEVE CLAYTON: Exactly. So you can see now, if I go back and run my application, click on job 1022, it appears on the screen below, 1023, it appears on the screen below. We’ve done that first element of wiring up our application.

Let’s go back to screen two and continue building out the app. So I want to connect these, wire these up to my data. So this is going to be the actions that my engineers carry out. So they’re going to replace things, move things, align things. And then they’re going to perform those actions on a set of sensors. So we wire up to a set of sensors.

And we’re now getting very close to having our finished application. A couple more things I’ll just need to add in. I want my engineers to know which type of elevator that they’re working on. So we’ll make a connection, again, back into our back end. So I’m going to do a simple look-up statement. We’re going to look up jobs where the job ID is equal to — so for anybody who’s kind of familiar with Excel, you’re obviously familiar with this type of stuff.

So simple package select. So now I’ve got my Sky Shuttle elevator selected up there. We’ll run the application again. So if I click on a particular job, so I’ve got 1022 is the Sky Shuttle 9000. The final piece is it would be really nice if my sensors on the right-hand side of the screen were mapped to the particular elevator that we’ve selected.

So we’ll do one final piece of syntax and then we’ll run our application. So in this one, we want to filter the sensors. Based on the package that’s currently selected up there in the top left of our screen. So this one is to be equal to — I think it was label four that we had up there. And the text that we have in label four. You can see that I’m not really a developer, truly.

OK, so now if I finally run the application, I’m going to select job 1022. I’ve got to set the sensors on the right-hand side, 1024, a different set of sensors.

So let’s finish this job. And we’ll take some photos. So imagine I’m out there doing my elevator inspection. So that’s my elevator. I’m going to align the sensors and the control panel. Click on save, and that gets saved back into my back end. So in a short space of time, built an application for those mobile field engineers. (Applause.)

SATYA NADELLA: Again, this is not about building a disconnected RAD tool. Think about the entirety of your own practice and your own business model. You build these great applications. Think of them as tier-one applications. You expose them as a set of APIs and platform capabilities. Then you can enable the entire organization that you’re working with, the end users, the business units, to in fact build more applications on the edge using those APIs in combination with other SaaS APIs. That’s the future. That’s the kind of platform sensibility that we’ve had as an ecosystem always, and we get to do that again in this mobile-first world.

So that’s pretty exciting for us. And we’re in the early days in the feedback. In fact, Fujitsu has taken this product and really built out an entire service line where they now think about thousands of apps being built, not just one app or one engagement. And that’s, I think, a way forward for many of us.

The next thing we want to talk about is we want to move from more the application development to the kind of productivity tools that can be transformative inside the organization.

One of the things that you really need to break through the silos of the various applications and the data contained within them is search, because search is beautiful. If you know what you’re looking for, you type in the question, especially on the Web, it goes to the Web graph, you get back your 10 blue links, and it’s great.

And we’ve taken that and really advanced it with things like Power BI now where you can ask natural language queries, even inside of an organization on all your data.

But still, search starts with the assumption that you know what you’re looking for. There needs to be a better way because the ambient intelligence that’s there inside of the organization doesn’t surface, the knowledge doesn’t surface or is not discoverable.

So we built this Delve product to really enable organizations to become true knowledge organizations because they can now, every individual in their organization has the power to discover information and be more productive. So we want to show you a little bit of Delve.

STEVE CLAYTON: So Delve really is a great, great example of this notion that we talked about, ambient intelligence, alongside Cortana.

So what you see on my dashboard here now inside of Delve when I come into the office in the morning, whether it’s on a PC or a mobile device, this is what I get to see, the information that matters to me in a beautiful way, laid out contextually for me. So nothing on this page is irrelevant to me. And this is a completely different world to 10 blue links. Information is starting to find me. There’s intelligence build into the system. We start to apply machine learning again, so everything on this page literally is relevant to me.

But it’s built on top of this thing called the Office Graph. We talked about the Office Graph back at the SharePoint Conference. And what the Office Graph does is it brings together people, conversations and content in a truly beautiful way.

So we take a look at some of the things that we can do with Delve that really start to bring it to life, it’s just a fantastic information worker tool that is that ambient intelligence.

I can do things like look at the information that’s being presented to me. So what happens here is the Office Graph knows which meetings I’ve been in. So it goes into my calendar. It can understand which meetings I’ve been in, what content was presented. So no longer do I need to search for that information across file shares, SharePoint, locations in the company. It simply just finds me because it’s relevant to me.

I can do other interesting things. Like, say, what documents are trending around me? The Office Graph knows who I work with, it knows what documents those people are working with. And it says, “Hey, Steve, here’s a bunch of documents that your friends, your colleagues, your co-workers are working on that may be interesting to you.”

SATYA NADELLA: And just think of this like a Facebook news feed, except it’s for the Office Graph, not your social graph.

STEVE CLAYTON: And I can search across anything inside of Delve. So as I start to type in “Bill” — now, there are many Bills inside of our organization. But it immediately knows the Bill I work with, and scopes down to Bill Burr. So if I click on Bill Burr, then I get what you might expect, an organizational, hierarchical view. I can see who Bill’s manager is, I can see who we share a manager with, and who Bill’s direct reports are.

But I can also see some other very interesting things. Activity views. Views that you would never get normally inside of the organization. And so I can identify who Bill works with and that I might want to work with. I can identify who we both work with. So I can start to understand these implicit connections inside of the organization that previously I might not have been able to see because of the power of Delve and the power of that Office Graph.

SATYA NADELLA: And especially when you think about in a multidevice world, we use these different devices for different things. On the phone, I may want to use Delve to just keep up with what’s happening. On my notebook at work, I do the work. That notion of having a device family and these experiences is how we think productivity will fundamentally change.

Now, the one last thing we want to show you is something that I would say we as an industry have been dreaming about and have been working at ever since, perhaps, the Second World War when the first code-breaking technology and great software was used to do that.

And since then, there has been this continuous march on technologies like machine translation. And now in recent times, we’ve been able to put together what have been three distinct streams of research: machine translation, speech recognition and speech synthesis. It’s not just simply daisy-chaining them, but building them together into this one deep neural net that has magical properties.

And the first magical property that we’re going to use it for is to, perhaps, solve one of the oldest challenges that we as human beings have had, which is: How do we cross the language barrier? We want to be provide in Skype a translate service that allows you to speak two different languages, and yet, communicate without any friction in real time. That’s the dream of Skype Translate. (Applause.)

And now, this will be the first time we’ll be testing it in an acoustic bottle like this building. And we will see if it works. Fingers crossed. Go for it.

STEVE CLAYTON: OK. So I actually want to tell you a little story before we get into this demo, because the first time I saw this technology, I knew it was going to change my life. I knew it was going to change my family’s life.

So I moved to Seattle about four years ago, as you know. I have two small children.

SATYA NADELLA: And people didn’t understand your English?

STEVE CLAYTON: Well, they kind of understand my English. I’m getting there, slowly but surely, you know? (Laughter.)

So I moved to Seattle. All of my family is back in the U.K. And my mother-in-law is Chinese. And I’ve known my mother-in-law for 25 years. And I’ve exchanged about six words with her because I don’t speak Chinese, and she doesn’t speak English.

But perhaps more importantly, you know, my mother-in-law is over 80.

SATYA NADELLA: For some, that would be a virtue, I think. (Laughter.)

STEVE CLAYTON: This is not scripted. (Laughter.)

SATYA NADELLA: I just thought of it. (Applause, laughter.)

STEVE CLAYTON: So the thing I’m really interested in is having my two small children, so I have a two-year-old and a five-year-old. And wouldn’t it be wonderful if in the lifetime of my mother-in-law, of their grandmother, that they would be able to have a conversation with her in the language — wouldn’t it be wonderful if we didn’t have flies around? (Laughter.)

Wouldn’t it be wonderful if those two small children could sit there in front of the TV and be able to have a conversation in real time in their language, and for my mother-in-law to have a conversation in her language?

So we’re going to try and see that in action. I’m expecting a call any moment now from a friend of mine, Melanie. Melanie is German. And she has been celebrating for the last few days, as you can imagine. So any second now I’m expecting a call from Melanie. (Skype chimes.) And here she is. (Pause, applause.)

Good afternoon, Melanie, how are you? (German translation.)

MELANIE: (Through translation.) Well, how is it (inaudible) friends? (Laughter.)

STEVE CLAYTON: Sorry, Melanie, say that again. (German translation.)

MELANIE: (Through translation.) I am well. How are you doing? (Applause.)

STEVE CLAYTON: Very well, thank you. I am here at the Worldwide Partner Conference with 16,000 partners and our CEO on the big stage. So no pressure. (Laughter.) (German translation.)

MELANIE: (Through translation.) Have seen the World Cup.

STEVE CLAYTON: Yes, I did see the World Cup, congratulations. (German translation.)

MELANIE: (Through translation.) I could not be happier, I celebrated the whole night. In a single game, Germany has scored more goals than England in the last two events together. (Laughter, applause, cheers.)

STEVE CLAYTON: Very funny, Melanie, I’m more of a cricket fan. (Laughter.) (German translation.)

MELANIE: (Through translation.) What are you doing after the event?

STEVE CLAYTON: This afternoon, I fly back to Seattle. Then on Thursday I fly to New York, followed by Miami, then back to Seattle. And at the end of July, I’m going to fly to the U.K. to see my friends and family in London. (German translation.) (Cheers, applause.)

MELANIE: (Through translation.) Wow, that sounds like a packed calendar. Good journey.

STEVE CLAYTON: Thanks, Melanie. Goodbye. (German translation.)

MELANIE: (Through translation.) Thank you, goodnight.

STEVE CLAYTON: Thank you so much. (Cheers, applause.)

SATYA NADELLA: So we want to take technology like that, in fact, this Skype Translate itself we hope to be in preview by the end of the year. But it’s the kind of work that we get to do when we obsess about how we can change individual lives and organizations. Because think about Skype Translate applied to customer service. Think about Skype Translate applied in so many other contexts where human communication can be fundamentally transformed.

So that entire set of demos, hopefully, gave you a feel for what we as a partner ecosystem can do for our customers. That’s really what is in front of us. For you to take advantage of what we’ve done, build on us, extend, push us. And let’s collectively serve our customers to be able to transform their businesses and their lives. That’s the opportunity ahead of us.

And, of course, any opportunity which requires us to build new skills, which requires us to fundamentally change our approach, business model, or otherwise, is only going to happen if we are successful in renewing our culture. We’re 39 years old as a company. As I said, we have been partner led, so that means many of you have been with us through that entire 39-year journey.

And we’re here because we were successful not only in being able to imagine the turn, the next platform, but also because we changed. We changed the core of who we are in terms of our organization and how we work and our value to our customers. That’s the hardest part, really, the technology stuff is the simpler thing. And we all know that, but we need to move forward with the boldness that we can change our culture. It’s not even this one-time change, it’s this process of continuous renewal that we have to have that commitment to succeed — succeed with a customer.

And that’s really what the Microsoft journey is. That’s where I spend most of my time. That’s where I obsess about how can we enable the employees at Microsoft to be able to bring their A game, do their best work, find deeper meaning in what they do. And that’s the journey ahead for us. And it’s a continuous journey, and it’s not an episodic journey.

And so I want to end with this quote of another German philosopher that I used in the last earnings call of ours about showing courage in the face of reality with any opportunity you need to. But as I thought about it, the real thing that we get to do because of the success we’ve had is to go after the opportunity ahead boldly. Both in terms of what we build, the skills and technology and business model, but also in terms of that intrinsic culture that’s going to propel us forward.

That’s why I believe the right way to think about it is showing that courage in the face of opportunity. Thank you so very much. Have a great WPC. (Applause.)