>> Please welcome, Gavriella Schuster >> Welcome to Inspire 2019 Give it up for those great dancers That’s what we’re all going to look like later this evening when we’re partying, right? Obviously Welcome to Las Vegas, I am honored to be able to welcome you to this fabulous week ahead in Las Vegas We have a tremendous lineup of speakers, of sessions, of experiences to learn, to listen to each other, to grow, and to celebrate together this week You are excited? So before we get started, there’s something that’s been weighing on my mind It’s about the events of the last couple of weeks So it is really important for me to talk about us, our relationship that we have with each and every one of you Now, I am fortunate enough to work for a company where our culture is based on listening, learning, and a growth mindset Those are not just words on a page, those are the values that we live by It gives me the freedom and the opportunity to wake up smarter every day based on what I learn So as you may know, a couple of weeks ago, we announced changes to the program competencies in internal use rights, and the response from you about the ecosystem was overwhelmingly negative Yes. We clearly underestimated the value of those benefits, and the impact that would have on you and your businesses Your partnership means more to us than anything We value the relationship and the trust that we’ve built in that partnership because it is based on commitments, integrity, and trust It requires us to have ongoing communication, collaboration, and accountability When I heard your response, and I listened to what you were saying, and I read every single blog, and tweets, and article In my mind, there was really no choice or for us to walk back on that change So we are going to keep the FY19 competencies and internal use rights just as they are You have my commitment that I will continue, we will continue to listen, to learn, and though we may stumble, we will grow together, and we will celebrate our wins together So with that, I want to get to the celebration side There is a set of partners that are very special for all of the innovation and all of the value that they have delivered to our customers this year So please join me in a resounding round of applause to our 2019 Microsoft Partners of the year, please stand up [MUSIC]

>> On this journey, it’s to remember that every day is a new chance to succeed We wake up each morning seeking today’s greatness The sun rises and we move fast, bringing with yesterday’s wisdom and tomorrow’s vision We push every minute, amplify each passion We love what we do, because what we do, takes us all forward We have ideas that could at just the right time and in just the right way, move the world. So we go We collaborate, we laugh, we persevere, we win, we fail and learn, and rise We found our instincts, solving complex problems with simple elegant solutions Our changing world demands it With a little grace and humility, we find at the end of the day we have achieved more than we ever imagined. We see it Our fellow partners see it, and as one community, we feel it Right before the sun sets, we realize that together we made a difference, and difference that counts Our journey may have begun with only ourselves, but it grew into something much greater that we finished together with our partners side by side Festival, we’ll do it again tomorrow Welcome and congratulations to the 2019 Microsoft Partner of the Year Award winners >> Thank you. Thank you for all that you do for our customers Thank you for pushing us to the edge of innovation I can’t wait to see what you do this coming fiscal year Behind every great success are people, people working together to collaborate, to build, to work on something that’s bigger than themselves It’s what we all do every day I appreciate the people in this room more than you know If I could, I would personally sit down, have a cup of coffee, and thank each and every one of you But unfortunately, we only have a few days in Las Vegas, and I don’t really have enough time to do that with everybody So like many things, I’m turning to technology to help me out So we are going to use technology to show our appreciation to you I found a partner in Australia called the Lakeba Group They specialize, and they must be over here, they specialize in modern workplace solutions, and they build teams applications They have a customer called Thnx, who delivers tangible messages of gratitude out to people So I wanted to use this application to send you-all a free cup of coffee on us in Teams But when we went to do that, I realized that you do not all have Teams app on your phone yet So I’m going to make a deal with you, okay? I’m going to send it in e-mail, kind of old school, with the commitment that by the time you leave here today or this week at least, you will download the Teams Application to your phone, okay? Is that a deal? All right So this cup of coffee is good at any Starbucks in Las Vegas here this week Starbucks has been gracious enough to actually name a coffee after us It’s called the Microsoft Inspire Cloud Macchiato You can get it hot or cold So that I feel like I’m stuck down with you, please take a photo as you do that and share with me

It’s my way, it’s Microsoft way of saying thank you for all that you do. Thank you So let’s get this show on the road I am excited to invite our next special guest out onto the stage He is a world renowned speaker, author, and business consultant Please join me, let me tell you what he does He focuses on talking about how you take relationships to the next level, business relationships and the human side behind that So please join me in welcoming Simon Sinek to the stage >> All right >> Welcome >> Thank you >> I’m very happy to have you So Simon, you are an expert on business relationships I think all of us would benefit from understanding from you What does it take to go from having good business relationships to great business relationships >> Well first of all I’m not an expert, I’m a student, I believe and I think there’s lots to learn and I’m always growing One of the things that I’ve learned is that, having business relationships is like any relationship When you say what does it take to take any relationship from a good relationship to a great relationship, it requires all of those humans skills I hate the term soft skills is nothing soft about them, and it’s things like listening, and empathy, and patience, and actually having genuine desire to do good for the other person People can feel when we’re selfishly driven, it’s like if you have ever gone shopping and you can tell when someone is being paid by commission, we can feel it, right? They don’t really have our interests in mind, they have their commission in mind So we have to get the sense that someone actually cares about us, and one of the best ways to do that is honesty Honesty is actually a really easy thing, it just means telling the truth Sometimes when we tell the truth to someone, even when it doesn’t benefit us, it starts to build trust between two parties and eventually you can take a good relationship and to become a great relationship There’s no app for that, there’s no hack for that, it’s good old-fashioned human interaction and sometimes it takes time as well >> It takes a lot of time >> It can >> So when you think about how you apply that to accompany A company that may have hundreds of employees, how to instill that in the company? >> So the responsibility of leadership has nothing to do with being in charge Leadership is not about being in charge, it’s about taking care of those in our charge Unfortunately, this is one of the things that a lot of people who get promoted into a position of leadership forget When we’re very junior, we have to be good at our jobs and we get lots of training on how to be good at our jobs Some of us get advanced degrees, and whatever our job is so that we can be good at it If we’re really good at our jobs, eventually we get promoted, and eventually we get promoted into a position where we are now responsible for the people who do the job we used to do and nobody actually teaches us how to do that Not enough companies actually have good leadership training, it’s a different skill set We’re no longer responsible for the results, we’re now responsible for the people who are responsible for the results. Our responsibility is no longer to drive the numbers, it’s to help take care of the people, and create an environment in which they can perform at their natural best I get this question all the time “Simon, how do we get the most out of our people?” Well, people are not a towel We don’t wring them out, right? The correct question is, how do we create an environment in which people can work at their natural best, and that’s the responsibility of leadership One of those ways to answer the question is, we have to act in the way that we expect our people to act If we want them to be honest and act with integrity, we have to be honest and act with integrity, because the leader sets the tone If leaders are cagey about the truth, then what will happen is that people will be cagey about the truth If leaders are dishonest down and people will be dishonest up, it’s just how it happens So the best way to create an environment in which trust and cooperation can thrive is for leaders to take the risk of trust I’ve never in my life heard a great leader say “Prove to me why I should trust you?” It’s the other way around, leaders take the risk to trust and they actually have to earn the trust of their people >> So it’s about expecting the best out of people? Expecting that and delivering that yourself. Right? >> Exactly. We have to actually be the leaders we wish we had at all times >> Yeah and a level of vulnerability [inaudible]

>> A level of vulnerability, and this is one of the things when a leader asks for help, that’s vulnerable, because it shows that we have weakness, we don’t know everything The amazing thing about building trust is we don’t build trust by offering our help, we build trust by asking for it, because by asking for help, we’re actually admitting we don’t know everything By asking for help, we’re admitting that we can’t do everything For the leader to be able to say that like, “Hey guys, I’ve been promoted into this position You guys have been doing this a lot longer than me, you know more about this job than I do So my job is to give you the resources, giving the space, gives you the top cover that you need, but I’m going to have to lean on you and rely on you to show me the ins and outs of this responsibility of this category because you know more than I do” That’s huge and it creates teamwork It says that we have responsibility to help take care of our leader, and our leader’s responsibility is to take care of us and it becomes a proper trusting team >> Yeah. Thank you, Simon Thank you. This is super-helpful Simon is actually has a session in our leadership track kind enough to do that, so I would encourage everybody to join him in that Okay, not everybody because I don’t think it’s this big, but as many of you as you like What you talk about in terms of relying on people who are much smarter than you is really what we do We looked to all of your partners, you are much smarter than we are, you are much closer to the customer than we are, and this week really is all about us coming together as a community to listen to each other, to learn from each other, to ask for that help and build those relationships that take us forward to greatness throughout the whole year So thank you, and thank all of you and welcome to Inspire 2019, I look forward to a tremendous week ahead [MUSIC] >> Good morning and welcome to Microsoft Inspire

I couldn’t be more excited and thrilled to be here with each and every one of you Look, I’ve been doing this for a long time longer than I care to admit Frankly, I’ve been a part of the partner ecosystem my entire career, and I have to say this is the best partner community and the entire industry I am so thankful for everything you do each and every day My confidence in you is just enormous, and the impact that we have had this past year has truly been amazing So thank you for your passion, your energy, your time, efforts, your tenacity, and your perseverance. Thank you So FY19 was truly a landmark here from Microsoft and all of our partners, really truly a landmark here The marquee wins that we’ve add across industries have been just stunning The logos that you’re looking at now actually just represent our best wins from the last two quarters alone If you read my earnings blog, you’ll hear about how we’re making progress in financial services, retail, healthcare, government, education, oil and gas, automotive. To a number, the investments you’ve made in industry have just delivered tremendous progress, and everyone’s taking notice of just how powerful this ecosystem really is So once again, congratulations on all of your fantastic progress Earlier this year, Bloomberg actually did a piece on Microsoft’s transformation They talked about the innovative spirit and how it’s been reignited inside of our company There was a lot of focus on our R&D efforts, but I think what made me most proud was that the focus of the article was really on our customers where it should be Again, for us it’s less about Microsoft becoming cool and frankly more about that’s making our customers cool, and that doesn’t happen without all of your hard work and energy Our job is to deliver great products, great intellectual property that effectively becomes your toolkit for delivering solutions to market and that came alive through this article The other thing that the article talked about that really for me was a proud moment, was the fact that two years ago, we embarked upon this journey as transforming Microsoft’s go-to-market model, showing up differently for our customers, putting their value and their impact first The article did a fantastic job about talking about our progress, and I want to play back our FY19 successes to you with those same five pillars: our industry focus, our focused on technical solutions, our investments in Customer Success, the Digital Impact that we have had, and of course our one commercial partner program So in FY19, our investments in industry were awesome So whether it be NRF, or HIMMS, or Hannover Messe, customers, analysts, PR, everyone is taking notice of the progress that we’ve made together The differentiated solutions that all of you are building and taking to market and the impact that it’s having not just for individual customers but for entire markets If you take what we’ve done in retail alone, with Walgreens, with Kroger, with Unilever, the impact has been enormous because we’re effectively creating this consortium across retail that empowers them to leverage our technology to make a difference in the areas that matters most to them It’s great business for all of you, because it allows you to do more than just deliver Cloud solutions, that actually allows you to deliver differentiated value in the way that customers see it to be most valuable Our focus on solution areas really really just has lifted us enormously forward in the eyes of our customers We’ve pivoted away from point product innovation, whilst I’m very proud of all of the innovation byproduct that we’ve had because it has been a tremendous year for us What’s really truly been different is how we compose them in into solution If you think about it, take for example all of the great modern workplace tech that we’ve delivered whether it be enhancements in Windows 10 capabilities and surface our OEM device partners delivering great form factors solutions The investments we’ve made in security and of course Teams, that’s really ignited the way in which people collaborate All of those products have truly lifted our innovation forward But what matters most to customers frankly is the fact that they actually experience a modern workplace solution that transcends form factors and really actually makes their people far more productive That’s what matters most If you look at it across solution area, the progress we made in business applications People taking notice that we’re making ground on Salesforce,

the core effort that we had an APS and infrastructure and of course, data and AI to a number, we’ve all lifted solutions forward for customers It’s been great again for your businesses Those of you who have invested in practices by solution area have seen enormous growth this year, far more so than what has our traditional business been, it’s creating annuities for all of you, and I appreciate sincerely the investments that you’ve made So there might think about the anchor tenet of our commercial model It’s customer success and that begins and ends with partners It’s about living with the customer beyond the deal In fact, if you look at the headlines that are posted here, it’s less about wins In fact the Word win really isn’t on the charts Speaks of partnership, alliances, unleashing new capability together like to work that we’ve done together with BMW creating the open manufacturing platform That creates enormous opportunity for intellectual property vertically to be built across the automotive industry For BMW and Microsoft and all of our partners so that there’s this richness of an ecosystem that can benefit from all of the work that we’re doing together Similarly, if you look at the work done at Kroger Well, we’ve taken huge grocery provider and enable them to actually become a technology company delivering a shelf edge experience that allows them to connect with their customers, digitally provide advertising, and actually create a whole new line of business in terms of engagement with their customers It doesn’t happen without you investing in your own skills When I look at nearly 200,000 of you that have become certified on our rich new Cloud capabilities and 40,000 partner companies that have become certified and added credentials That is what you do to invest in customer success so thank you once again for all of your efforts Then of course we’ve got to do all of this at scale, because this community, this ecosystem stands for something more It’s about having global impact and we can’t do that unless we operate with enormous scale and efficiency So we’ve invested materially and all of our engagement capabilities This year alone, we unlocked more than eight million new customer contacts Now, but we did more than just that because if I throw eight million business cards into a fishbowl and said, “Good luck, partners. Go for it” I think you’d probably say, “Hey thanks, Judson but no thanks So we’ve invested more than a million hours this last fiscal year alone in our inside sales centers curating those opportunities, so that we can pass more than a quarter million leads out to our partner community This impact has just been enormous for our business, our corporate businesses, our SMB businesses have grown better and faster than ever before It’s been a landmark year for these businesses I appreciate everything you guys are doing to grow this community of customers and invest in our mutual success Of course, the cornerstone, the foundation of our commercial model rests in our one commercial partner program I stood in front of you two years ago and said I would build with you, go to market with you, and sell with you Then FY19, we did exactly that In fact we had more than 22,000 IP coastal wins together That’s your intellectual property running on the Microsoft platform us working together to bring those assets to market and sell them together effectively to customers Accordingly, our Cloud Solution Provider Program rule over a 100 percent year-over-year on top of pretty huge numbers The bottom line is that when we work together, businesses better for Microsoft, businesses better for you, and businesses most certainly better for our customers But perhaps, the most important thing in my point of view, beyond all of our financial success is the investments we’ve made in our culture I want to speak about this using the word ‘our’ because once again, I see the partner ecosystem as an extension of Microsoft, so our culture and the fabric, how we operate is also extended to you You’re invited to be a part of this family So it begins with this notion of having a growth mindset, a learners mentality so that we can embrace new technologies and light up new solutions for our customers, but it ends with making a difference Ends with making a difference because the differentiated capabilities within this ecosystem stand for investing in the things that matter most to the planet The three things in the middle are core to making them come to life, us operating as one Microsoft when we engage with you Investing, obsessing over our customers,

putting their needs first, and of course, investing in diversity and inclusion I want to take a moment to talk about diversity and inclusion because we’ve made huge investments, we’re on a journey, and each day is a new day of learning So I want to share with you three stories that really meant something to me personally this last year I’m going to start in Fargo, North Dakota So Fargo was a site that came to us through our acquisition of Great Plains software some years ago We’ve grown our investments there In fact, Fargo is a little slice of Microsoft There’s a piece of human resources there, finance, R&D, of course, our support organization and our inside sales organization So it’s a little mini Microsoft running in Fargo We’ve invested a lot in recruiting, early in career, diverse talent to come work in our thriving center in Fargo so that we can cure a talent and promote them across all different areas of the world for our company, but it can’t stop with just creating diverse representation You have to invest in inclusivity So we had an inclusion day in Fargo where we went out and we met with the three mayors of the local cities around and communities around Fargo, as well as the chiefs of police We spent time explaining to them our values and what matters to our people because it’s not just making sure that they can learn, grow, thrive, be happy in their jobs, but that the community around them also supports our values so that their families can also have enriched lives So I’m really proud of the work that we’ve done there I don’t want to claim victory, I want to be really clear, we still have a lot more work to do, but I’m proud of the journey well started The second area of investment that rings true for me in a personal way is our investment in accessibility We hosted accessibility summit earlier this year We had over 1,500 people come together and talk about how to develop and innovate with accessibility as a first-class priority It was a fantastic event We talked about making sure that all of our customers when innovating new digital solutions have that capability, have that accessibility ethos first and foremost in their minds We created jobs and it was a fantastic moment for us Far more to do there, far more to do there We’ve actually invested in a developer who is blind to be a part of our commercial software engineering teams so that we can do QA testing for accessibility and we want to encourage all of you to do the same Then finally, the third highlight of the year for me that was really a personal one, was our investment in affordable housing Look, the digital economy has lifted us to new heights, it’s lifted the financial world to new heights We can’t leave our communities behind It’s just not acceptable to have teachers and firefighters, police officers, not able to work in the cities that they support So our investments in affordable housing are critical and meaningful to what we stand for as a company I know so many of you are making the same investments, I really appreciate it Again, this is what it means to be a Microsoft partner It’s different Calls us to a higher standard and I appreciate your investments So lot tremendous progress in FY19, tremendous progress But we have more to do, much more to do I don’t say that to put some lump in your throat or make it sound daunting because it’s been a fantastic year and I want you to celebrate that fantastic year, but I do want to call you to a moment in the video, that role before I walked on stage, where I talked about seven billion people and sure, yet one of the largest partner ecosystems on the planet our capabilities are rich, but by contrast were the few when compared to the seven billion people that need our help So it’s about the few empowering the many So when I thought about what is the more to do? What does come next? I came back to Microsoft’s mission because it’s deeply meaningful for me personally, to empower every person and every organization on the planet to achieve more It sparked my thinking for this keynote The message I really wanted to share with all of you For me, it sparks this concept of democratizing digital, making sure that everyone can benefit from a digital experience, and that we enable everyone to participate in the digital economy That’s what’s next for us I’m really proud of course, of the great wins we’ve had, I’m really proud of the Marquis

customer relationships that we’ve struck Of course, it’s great to talk about all of those things, but once again, we stand for something more For me, it is a higher calling and for us, I want it to be a shared aspiration So I want to unpack this for you Unpack this concept that democratizing digital It starts first with equipping everyone with modern skills so that they can participate in the digital economy Microsoft will invest over $100 million this year in enabling you, in enabling our customers directly, and in our own skills because we believe these modern skills are critical to deliver that digital experience to everyone From there, it’s about putting artificial intelligence to work It’s not just about optimizing the business process, it’s about enriching the work that people do Igniting the human spirit, invoking that learned nature of what it even means to be human If you do this, you actually enable the business to learn in real time through the people that make the business happen The next principle of democratizing digital is this notion of connectedness Every CEO on the planet wants to be a fly on the wall on the frontlines of their business We can connect the frontlines to the boardroom I’ll bring this to life for you with a really practical example Take Azure machine learning, one of the more complex and robust services that we offer in Azure, has the ability to reason over enormous amounts of data, optimize a business process, but it doesn’t actually come to life until you implement that collaboration fabric, you implement teams to connect the front-line worker to the boardroom That’s what enables the business to truly come to life, to really realize impactful gains Every company is also becoming a technology company Developers will change the shape of every company on the planet This developer ethos tech intensity will have to be born inside of every company in the future So what we want to do is we want to empower the elite developers all around the world to enable the citizen developers For me, this comes to life through GitHub and our Power Platform GitHub enables our rich ecosystem the best developers in the world, to innovate productively and efficiently Because look, this idea that somehow we just hire morally developers, it’s almost nonsensical That skills deficit is very real, so we have to make sure our very best are as productive as they can be So they can take their innovative assets and make them inheritable into the declarative application platform that is PowerApps So that the citizen developers of the world can find their own tech intensity and really develop and innovate at scale Look, if we do this and we do this well, what we will do together as we will eliminate the mundane nature of work so that people can focus on the problems that matter most Look, the most valuable asset we have bar none, is human time and attention If you make technology the empowering force, you put it to work, you enable that human time and attention to solve the problems of the planet, that’s what democratizing digital means to me I couldn’t be more excited to introduce my first guest on stage because I believe that Unilever is actually bringing democratizing digital to life today What I’m going to share with you is not a series of demos, but actually a real solution they’ve implemented, where from the boardroom all the way down to the frontlines, they’re making digital work for everyone So I’d like to share this video with you to introduce you to Unilever [MUSIC] >> Unilever is one of the world’s largest consumer product goods company Our products touch 2.5 billion consumers Every day, we have a higher purpose that sustainable products are better for long-term growth We’re on a journey to become a data insights-driven company For me, it’s a lot about data and putting data in the hands of the people that need it A strategy like this comes with a huge cultural transformational shift in how we work

For our employees, that means providing insights for them to make better decisions to help them collaborate, develop better products, to innovate We’re finding that with analytics, people are now being able to predict the future I think that’s made a really powerful change for us We’re really proud of the progress we’ve made I want to say thank you to Microsoft and the many partners who have been supporting us When I think about the journey, the word empowerment comes to mind We talk a lot about digital, but what does digital really do? I think it empowers people to be better at what they do every day Really, that’s what the partnership with Microsoft means to me [MUSIC] >> Ladies and gentlemen, please join me in welcoming Unilever’s Chief Engineer, Dave Penrith Dave, welcome >> Thank you >> Welcome to Inspire >> Thank you very much >> So listen, I’m truly impressed by all of the work that you’re doing at Unilever But let’s start with you Because sufficed to say, you’ve been at Unilever for a little while >> Great. Thanks, Judson It’s really great to be here This is me, actually as a 16-year-old on my first day at Unilever Over the last 34 years, I’ve worked at every level at engineering and I stand here today very proud to be Unilever’s Chief Engineer, representing the great team in engineering and the widest supply chain within our company >> That’s awesome >> So 34 years, 34 years suffice to say technology’s changed a little bit over that period of time How have you stayed fresh and how have you continued to bring innovation forward for Unilever? >> Today, we’ve got unlimited access to data, and what we’ve tried to do is encourage our community, meet for engineering, to be constantly curious, and really ask what are the possibilities all the time? In my role, I come, possibly hope to fix problems all over the world We’ve got hundreds of factories all over the world, but what I can do is I can give people the empowerment and the tools to fix their own problems Where we are now is we’ve got a digital architecture that not only connects all of our factories, but also more across the wider supply chain too >> Well, it’s obviously working because Gartner has rated you as master category in end-to-end supply chain management The impact has been enormous I have to say for me personally as well, having had the opportunity to come to your London facility and see your work there, as well as actually go to one of your factories in Valinhos, that had been truly impressed by the work that you’ve done So maybe you want to share a little bit with the audience about that >> It was absolutely fantastic to have you in Valinhos I remember you said to me afterwards you’d love the opportunity to bring Valinhos to Las Vegas. So >> Awesome. With the help of a little bit of technology, we’re going to bring everybody into the factory >> Judson, welcome back to Valinhos >> Awesome >> We produce over here and in a number of places around the world, and we produce way over 200,000 tonnes of this all over the world >> Yeah. So listen, when I first went to Valinhos somebody said, “Well, hey we’re going to show you the digital work we’re doing in a soap factory.” I thought to myself, how much digital work do you really need to make soap? How hard could it be? What can I say, I got schooled by everyone there It’s actually an incredibly complicated process Maybe take everybody through that a little bit >> So a quick lesson in soap making It’s over 40 feet tall and at the top of that, we start with mixing a lot of raw materials That’s a hot process So it’s a lot of heat in there So we need to cool as it comes through We then extrude the soap into long lens and we cut it, we shape it, and we send it off to be packaged We’ve got three of these lines operating in Valinhos and if something breaks, you’ve got to go and physically find it and you see how big it is over three floors You’ve got to go and find that >> Yes. So clearly a complex operation If anybody had to climb all over this thing to try to figure out what operating parameter came out of order or how to actually optimize a process, it’s a tremendous amounts of iterative refinement and manual labor So you’ve used digital twins to actually help to optimize the process Why don’t you share to everybody? Maybe people may not be familiar with what a digital twin is Help everybody understand what you’ve done >> Yeah, sure. So a digital twin is a virtual representation of either a physical asset, a process or a system We knew that to make the next steps, we needed to ask ourselves different questions to get different insights So what we’ve done is we do mass data collection first,

and I think the learning for us was not to be prescriptive, just take all of it and we call it the fire-hose of data We feed that into the digital twin and then the analytics looks for insights and trends and then we start to use the algorithms to learn We learn that it’s actually like a child learning The more data it gets, the more it learns The more it learns, the faster it learns and gets increasingly accurate Eventually, we switch prediction and control over to the twin What we like to say is the digital twin, it learns from the past, it lives in the present, and it creates the future >> That’s awesome. So why don’t we show everybody what you built? >> Okay, let’s have a look on here So you can see we’ve got a number of connected factories on here but let’s go look at Valinhos Here we are and there’s the lines, the three lines in Valinhos We mentioned before on here Let’s take a look at line one. So here’s line one Line ones, they’re currently running now at around 500 bars of soap per minute >> Well, so 500 bars of soap per minute Three lines, 1,500 bars Effectively, we could make a bar soap for everyone in this arena in less than 10 minutes >> Yeah, that’s right. That’s assuming nothing goes wrong >> Pretty impressive >> Because if there’s an issue on the line, we’ve got to send somebody to physically climb around that equipment and you’ve seen how big that gets >> Yeah, so must be like finding a needle in a haystack >> Yeah. But let’s take a look at how this works Let’s go and look at the plodder >> So remind me again, what’s a plodder? >> A plodder is par at the system that extrudes the soap before it goes off to be cut and shaped >> Got it. So pretty critical to providing high-quality soap You’ve effectively put a sensor plodder over the entire line such that you’re using IoT capabilities and Azure to feed a huge data estate, reasoning over that with machine learning or via the optimized algorithm >> That’s correct, and that’s where the machine learning algorithm, learns from the history >> We knew the critical parameters on the plodder with these three variables On the top left, you see the actual speed, you see the barrel temperature there in the middle which is the barrel and then the temperature of the screws on infuric Now where we are is the digital twin actually controls those parameters in real time using advanced process control to ensure the consistency With this technology, we can find lots of needles in, lots of haystacks >> That’s awesome. So I think it’s important for everybody to know, this isn’t just about monitoring, this is actually real time control of the operational line >> Yeah >> So what’s the impact then, Dave? >> It’s been truly phenomenal Early on in this, we realized about 2.5 million euros saving and that was across many areas It was across quality, it’s across energy, it’s across materials waste and we’re seeing productivity going up three percent as a result of that >> So you introduced this technology to the factory, people who’ve been doing this their whole lives Well, what was the reaction from the leaders and the operators at the factory? >> That was a real funny and sometimes unexpected result is we start at this pilot nine months ago and then we switch control over The operation state in Valinhos, they wouldn’t let us switch it off >> It’s effectively the pilot that just kept on going >> Yeah. It sure is >> That’s awesome. Great. So what’s next for the digital twin? >> Well, we are currently streaming data from 15 factories and we’re going to connect another 70 factories by the end of the year, and there’s lots of opportunities for twin in there This will expand across all of our product groups of home care, beauty and personal care and food and refreshments So we’re going to be covering everything here from soap to soup >> That’s awesome. So awesome impacted the operations itself How has it actually impacted the people? What did they see coming off of the twin? >> Two real game changers for us have been Power BI and Teams We’re a big company, we’re a big manufacturing company We measure a lot of things and we’ve got a lot of scorecards but we always think that’s backwards looking It’s cold data for us What Power BI has enabled is for everybody to look at both historical data and live data with a level of real-time intelligence More importantly in a format that’s useful for them for the problem they’re trying to fix, and all of that is accessible from within the Team’s platform >> That’s awesome. So can you give an example of what an operator might look at? >> Yeah. If we look at this Dashboard, this is our alerts Dashboard So in a large factory such as Valinhos, that could be 3,000 alerts today If you imagine that each one of those could take maybe two minutes to look at and resolve, there are that pretty busy people >> For sure. So of course, loss of money, loss of productivity, but also probably fair bit of frustration >> Exactly, and what we were able to uncover in the data was that many of those alerts were not the same priority so we

allow to prioritize it and as a result, we were able to reduce the number of critical alerts by more than 90 percent today You can see that hey run this dash or that you can filter on the severity type The added insight that we go is the number of alerts was also declining because the digital twin was enabling us to continually learn about the operation >> That’s awesome. So it’s a real virtuous cycle We talk a lot about a digital feedback loop and you’ve really brought that concept to life You started of course with his notion of optimizing the operation but then very quickly pivoted into empowering your people to leverage that So they’re not longer spending cycles on Monday work, getting right to the problems that matter and it’s actually allowing you to create a better product as a result of it and then of course deliver the promise of the Dove brand pack to the consumer and consumer expectations are changing pretty material these days >> The affair and for those consumers are demanding brands with purpose and not for roses about sustainability, we’ve got a goal to be carbon neutral by 2030 So we take energy consumption really seriously in Unilever I can show you an example of that feedback loop that you mentioned Judson is this one on here So on this Dashboard, this full factories around the world, sharing real-time data on energy usage So as you can see, on the black trend there, are Mannheim factory in Germany started to really decrease their energy usage last October >> So you can basically look at this trending and understand best practices across the different factories, how do you put that to work? >> That’s right. This scenario really happened What this allows us to do using this Dashboard with Power BI is create the sense and drive the sense of curiosity in our people Then they send result in a conversation between the two factories about how they achieved it >> That’s cool. So what did they end up doing as a result? >> The net result for this is they looked at all the motor drives in the factory and they swapped many of those out to a variable frequency drives which are much more efficient uses of electrical energy to drive motors So we ended up with some improvements that were good for the environment and good for the bottom line also, and it’s also about learning from each other and we call that the multiplier effect in here >> That’s really cool I remember when I had the opportunity to meet with Alan Jope, your CEO, he spent a lot of time talking to me about how Unilever’s a purpose-driven company, how does this focus on bringing sustainability into the product and this is a real-world example about how you’re able to use this system to actually teach other factories how to actually achieve on that goal which was just awesome So I noticed your Power BI charts are all embedded in Teams You want to talk about the collaborative fabric that you built here? >> Yeah. So furrows Teams is the place where our operators, process engineers, maintenance people and managers, they all collaborate there Infrared engineering, we’ve got more than 2,000 engineers in our we are engineers team site and they will use Teams every single day, and more groups are coming on board For me personally, I’m a real believer in connecting people Once you connect the people, I find that the problems take care of themselves >> Absolutely. So you have literally thousands of people working in these factories How did you train them on all of this new tech? >> What we did is we use digital boot camps So we’ll start into role amount and we use the full suite in there We use Teams, Power BI, Flow, PowerApps all in there and the big difference is many of those forums would have been face to face So not only we get in all this rich information and insights, we’re creating a real culture shift >> That’s awesome. So is it working? Do you feel like it’s really having an impact from your people? >> Personally I really do but rather than listen to me, why don’t we invite somebody on your Mac while you’re in Brazil? So I’d like to welcome, Fernanda >> Awesome >> Hi, Fernanda >> Hi, Vincent >> Good to see you again Welcome to Inspire >> I’m here to speak again. Thank you >> Thank you so much for being here When I was in Valinhos, I was just blown away by the Dove factory but I was also pretty happy to learn that you also make ice cream there as well I met your colleague on the Dove side and you on the ice cream side So why don’t you tell us a little bit about your work? >> Sure. First of all, I’d like to say that I’m not a native English speaker and it’s my first time speaking to so many people So I’m trying my best >> How about a warm round of applause? >> Welcome >> Well, I started in Unilever five years ago as a technology intern, and now I’m a process engineer just like Mayara She works with Dove, I work with ice cream She would love to be here too but she just had a baby So I’m here to represent us and tell you about how we’re using technology in Valinhos

>> Well, I think we would all agree Mayara is in the right place with her daughter, and you’re in the right place here to share all of this with us So why don’t you tell us a little bit about what life was like as a process engineer prior to all of this new tech thing introduced? >> Yeah. We had a lot of quality checks to do to ensure that we are going to deliver high-quality products to our consumers So our operators needed to do the quality checks on paper every day in every batch >> It’s a lot to haul a rack every day? >> Yeah. It’s hard Then we would transcribe it into an Access spreadsheet So it’s not environmentally friendly We were always trying to solve problems in a reactive way, and there was no added value activity in doing that So we needed to change that >> Yeah. So how has the tech made a difference? >> At the boot camp we saw PowerApp demos and we decided that we could definitely create apps to help us So I got an example here, but I need your help to do this with me, will you? >> I’m not sure I’m terribly qualified, but we’ll give it a shot >> Yeah, you are. It’s pretty simple I’ll help you. Just pick up a bar >> Okay >> Let’s get started. We’re going to assess five quality characteristics >> Okay. So I’m going to get five things right >> Yeah. Fragrance, color, shape, logo stamp, and sand. Ready? >> Okay >> All right >> A little nervous >> So Dove First question is on the perfume, how do you feel it? >> Well, it smells pretty nice to me >> All right >> Is that one of the options? Oh good >> Good >> Okay >> Good. The color now >> That’s a crude exam in here listening >> Yeah. I could feel it >> Really this one my wife would make a tremendous amount of fun of me because she says I can’t tell color at all So I think it’s really a nice shade of white >> Yeah. So white >> Good >> Good >> Two for two >> The sand now. I got you. Sand >> Yeah, sand and soap You do have me. How would I tell sand quality and soap? >> Just feel it in your hands, is that smooth? >> It doesn’t feel sandy It feels pretty smooth to me >> All right >> That’s a good >> It’s good >> Good >> Perfect >> Yeah. All right >> The shape >> Shape >> How does it look like? >> I’m going to go with oval. What do you think? Oval? Will I get help? Yeah >> Everybody knows of oval Okay. So good The last one, logo stamp >> I think it looks like a pretty good dove to me >> Yeah >> It’s the good >> Good >> Yeah >> Good >> Perfect. Last thing is to take a picture >> Okay. Here, wait. I should have done my nails this morning. All right. Good >> All right >> Awesome >> When you submit it, it goes to the Cloud >> Fantastic. So a simple mobile app allows you to run the factory floor, do quality checks much more efficiently, much more consistently than hauling paper around, plus there’s no transcription, everything’s automatically uploaded to the Cloud For me, I think the cool thing there, Dave is what you can do with computer vision tech One of the things I talked about earlier is this notion of enabling a professional dev, an elite developer to empower citizen developers like Fernanda So you can take computer vision and implement it in this mobile app so that all of that qualitative response that me the very junior quality engineer was trying to describe and instead of just saying good, good, good or fair, bad, poor, you can actually have computer vision put an algorithm to what good really means analytically So once again improving the quality and the outcomes and it’s just fantastic in my view So really cool stuff, awesome that you build a PowerApp, tell us what the impact has been on your career >> Well, for my career, it’s awesome because I can see that the operators are motivated about it We don’t need paper anymore We’re saving people’s time to developer jobs, and Valinhos team is really excited about going further with digital and with technology For me, the more important is that I’m part of all of this stuff and I’m helping to create a different way of working, manufacturing, and changing mindsets >> That’s awesome >> It’s great >> Congratulations Thank you so much for being here, Fernanda >> Thank you for having me >> Very well done >> Before I leave I have something to say As a treat, I brought ice cream for everybody to enjoy

It’s Ben & Jerry’s, and it will be available for you-all when you leave this stadium and go back into the hot sun So hope you’ll like it >> Awesome. Well, I think you might just get invited back >> Thank you >> Nice stuff >> Bye >> Thank you so much. So, Dave, look, it’s amazing, the work you’re doing, and I do have to just remind everybody for a moment that what you just saw is not a set of demos, this is actually live work that’s running in factories today and you’re going to roll it out around the world, so you truly are democratizing digital at scale? >> Yeah >> But look, we’re in a room full of Microsoft’s best partners and I know that you believe passionately that this work doesn’t happen alone It happens through great partners building upon the Microsoft platform You had actually six different partners involved in the creation of this digital factory For me, I always say none of us is as smart as all of us, and when you can put the minds of Microsoft partners together with the platform capabilities that we have, the results are just enormous There was one partner that really stood overall and really led this digital factory work a partner called the Marsden Group, and we’re very fortunate to have with us Andy Pratt, the CEO of Marsden group Andy, welcome to Microsoft Inspire >> Thanks a lot guys, appreciate it. Thank you >> So, Andy, listen Thanks. That was awesome You’ve built a fantastic solution and true partnership with Dave, and I think everybody’s pretty blown away by the work that you’ve done I think everyone in the room probably wants to know a company of 100 people, how did you get involved with Unilever? How did this get off the ground? >> Yeah. Well, it’s been a wild ride So Dave met some of our oil and gas partners with the work we’re doing there on the digital rigs, and next thing I know I’m in a meeting room in London at the Microsoft HQ with the whole team and then Dave just suddenly stands up and he says, “I want a digital twin of a factory in Brazil and you have six weeks.” >> Six weeks >> Everyone even the Microsoft team were trying to look on the floor and no one wants to make eye contact with him He’s looking at me and my guys are looking at me going don’t do it, don’t do it So it was just like, okay, let’s go So two days later we’re on a plane to Brazil working with the incredible Valinhos team Six weeks later, we’re on a plane to Seattle and we have the whole Unilever board, the Microsoft exec you ever see there, and we presented the full twins We had it stream in real-time We had the first models predicting on those extruders and plotters you saw We even put it in the HoloLens, there was like a hologram on the table Yeah, as you can imagine once that train left the station, it’s been a pretty great nine months >> Wow, that is awesome Fantastic work Dave, how about you? Why did chose the Marsden Group? >> Yeah, Dave? >> Why? I would say the first one speed Andy’s just said what we did in six weeks, that was an amazing response to that A real big one is the diversity of thinking that Andy and the Marsden guys bring It’s a different industry they’ve worked in before, and I mentioned before over the other side that we look to ask ourselves different questions, so get someone from a different industry I think the energy they bring, you’ll pick that up from Andy as it goes is amazing, and the overall experience for us has been one of real positive disruption It’s been fabulous >> So how did you deliver it so quickly, Andy? >> Well >> Or you’re not going to share that >> Yeah, well, here’s all our secrets guys, everybody get to work But I think the most important thing was building on what the factory teams are already doing Not trying to come in with this perfect fix You’ve met the Valinhos team? >> Yeah >> They’re incredible They are pushing ahead on all fronts, and so our job was really just to try and get in there and unlock the art of the possible with what some of these newer texts capable of doing and show them how fast you can actually do it We literally designed and manufactured a sensor pack at our R&D facility in Houston and put it on a piece of equipment in that six-week window But I think the real magic happens if you get a bunch of their subject matter experts and the engineers in the room and then you show them their data come to life predicting stuff, and then when you go and put it on top of a piece of equipment and let it control it, everyone’s eyes, oh, and it seem they want to do everything in the factory, every piece of equipment So then it’s about getting in the trenches, and I think our team’s job was just about we got to get the complexity of the technology out the way and then turn it back to those guys and just let them run with it I think the amazing thing is seeing it repeat now as we do the boot camps, as we do more and more factories >> So what’s next for the two of you? What are you guys working on? >> Wow. The first thing we’re doing now is it’s about getting to scale out It’s like because one factor works,

they like 70 this year, let’s go So it’s about getting the scale-out, that’s been exciting, and then on to the wider network Most of our focus is now really pushing the intelligence of the twins We want to see how smart we can get these things Controlling a lot more of the processes like you saw with the APC But I think most of the energy is actually going with, how do we take the intelligence and actually augment the operators? Give them those insights So one of the really cool things we’ve got going on is the Dynamic planning engine So it’s trying to work out how it can meet quota, utilize other lines in the factory and free up assets for planned maintenance, and it’s just like the perfect opportunity for like Dynamics 365 Field Services, route that work order in there, bring that line down and then everybody can get the work >> That’s awesome So many ways you’ve done a lot of the hard work and the sensor fabric, the IoT Flow, building out the data estate in Azure, and the Machine Learning models [inaudible] , so then laying the scaffolding of Dynamics 365 over top of that, is a great next step So what benefits Eddie do you get from being a part of this larger ecosystem? >> Yeah. For us, there’s only a 100 of us, right? >> Yeah >> There’s a lot more of them and there’s a lot more factories So it’s about the acceleration in the scale or the things that we’re seeing very effective Just being able to work on consistent tool sets, that’s consistent platform, like even with Vilnius Daniel, he’s just got a two-man band This is amazing automation partner Within hours, we’re in the conference rooms Both our teams developing IoT Edge modules and then pushing them out into the factory the same day >> Awesome >> So that speed’s amazing Then you’ve got the wider system with the Jane and the bigger partners working on the massive infrastructure and the incredible ETS organization and what they’re doing So being able to just fit in that ecosystem and know we have the speed and we have scale support is just fantastic Then the stuff that’s now happening with ODI, I keep like begging, can’t wait to get my hands on it because just getting that standardization of schemas, integrating models, all of that’s, we can go faster and just focus on getting the value out and not all this plumbing that we’re currently fighting with >> So look, we’re making great progress with the open data initiative Unilever’s been really cutting edge with the concept, the work we’re doing with Adobe and SAP But then of course because it’s open, having your data be a part of it So what does it mean for you, Dave? >> I’m really looking forward to see the results about the ODI Initiative because I think that can be a real of luck when we’re looking at the data streams and a rail of luck, I’m really looking forward to it >> That’s awesome. Well listen, I can’t thank you guys enough for the work that you’ve done You have really truly done something special here The outcomes that you’re driving with digital capability are really really best in class I’m humbled to have the opportunity to travel the world to see a lot of solutions This is really one of the most impressive ones I’ve seen For me, the most impressive part of it it’s just how you’ve engaged people in the process because it’s a winning formula I’m convicted that you’re going to see great success with that So thank you so much >> Yeah, thanks a lot I appreciate it. Yeah, we really appreciate it >> Thank you >> So I want to talk a bit about how this solution came to life because look, I think it’s really important for us all to embrace a formula for success If you think about it, it’s really a journey There was no signature moves at Unilever that created instance success In fact, if you listen to Dave, and you hear him unpack his story, it’s really about iterative refinement In many ways the solution itself is never really done So creating that minimum viable product, getting value, having the pilot crepe impact in Valinhos, and then optimizing the same so that it could be rolled out across many many different factors at global scale So look, I want to unpack this for all of you because if we’re truly going to democratize digital, we have to all embrace this It has to be a shared aspiration For me, it begins with this concept of value generation Again, if you heard Jane Moran in the opening video for Unilever talk about it, Unilever is a purpose-driven company For them, the mission that Alan Jope their CEO put them on, it was about creating a sustainable product at scale So having that purpose, that value generation, having that singularity, supercritical in all of the work From there there were really four key things that Unilever brought to life I encourage all of you to take this consultative approach in driving digital solutions with your customers You have to first start with vision and strategy Sometimes believe it or not, this can be hard with your customers Trust me, I speak to hundreds of customers every month and Microsoft’s ABCs, and when I do, there’s so much energy around saying, “Well gosh, Judson, how can we take advantage of IoT? How can we take advantage of Intelligent Edge, the Intelligent Cloud, all this great new capability that’s coming out? ” You actually have to slow people down

Say, for what purpose? This idea that you’re going to simply throw technology at the wall and see if something sticks without having a crisp vision and strategy outline will certainly lead off to less optimal results, let’s put it that way, if any success at all So helping a customer through understanding, what is their vision? What is their strategy? What will the company look like three, five years from now, if you make all of this happen if you make these investments? Then the next thing you have to really focus on is culture Culture is what people do when they’re unsupervised If you look at the work that Dave did at Unilever, the technology solution that he built was 100 percent aligned with Unilever’s culture They’re are people first company Empowering their people was critical to their success Enabling the digital twin to have direct impact on the front line workers, staying true to the mission of building that sustainable product It was easy for people to adopt the technology because it was 100 percent aligned with their culture Then from there, you can think about this notion of unique potential You can really lay into a set of constructive hacks and co-innovation and code development producing this minimal viable products to find that unique potential from within a company This is where we’re counting on all of you to bring your skills, your capabilities, to find that solution ethos to help the customer really nurture their unique potential Then finally, it rests with capabilities You saw how Dave’s job really wasn’t done until he ran the clinics He taught Fernanda and her team how to leverage PowerApps and, Teams to make sense of the Power BI data coming off of the advanced Machine Learning algorithms Investing in that tech intensity Equipping everyone with modern skills So it really is the end of the day about people and technology Empowering people with the richest assets that our ecosystem can provide Our technology portfolio, your skills, how we bring them to life for an ecosystem People in technology are at the core So I want to talk about the technology for a moment Look, we’re at the precipice, the very beginning of this paradigm shift and compute the Intelligent Edge and the Intelligent Cloud The edge will only become more powerful and more capable of reasoning in real time You see it in almost every example that we have It used to be thought that hybrid compute was some sort of transition period until everything was 100 percent running in the Cloud Now, the modern architectures of richness at the Edge and leveraging the power of the Cloud and this connectedness of the two, enables us to innovate fantastic new solutions that really are at the heart of this notion of democratizing digital Our solution areas, they provide that fabric The fabric of harnessing this new compute paradigm From gaming all the way through to data in AI and yes gaming is critical for us not just because we want to have the richest gaming experiences for consumers around the world, because gaming actually teaches us a lot about the Cloud In fact, some of our most demanding customers, demanding Azure customers, are our gaming studios If you look at the announcements that we made with xCloud, were truly capturing the power of the Edge, and the power of the Cloud, and unlocking two billion gamers across a mobile ecosystem, leveraging this very paradigm shift Then when you think about modern life and modern work, these two is are so interwoven People don’t want a different technology set in their lives that they use at work, Microsoft and modern workplace capabilities and all of the partners that deliver enriched experiences in this area, truly can harness this work and life technology together Then business applications they have to flow They have to flow into the same sort of UI scaffolding The same ease of use They have to be AI empowered and driven in the same way Because this idea that you’re somehow going to have these rich mobile experiences, these modern apps, and then you’re going to turn to an ERP system or CRM system, is just nonsensical So the AI infused business applications capability is critical Then Core-apps and Infro This massive move to the Cloud creates huge economic opportunity Not only do you lift shift modernize and refactor applications, but savings that you create that then can fuel further innovation is just tremendous for all of us Then of course data in AI, my personal favorite because I believe data is at the core of all modern solutions In fact, there is really no such thing as Artificial Intelligence without investing in the data estate because the system can be no more intelligent than the data over which it reasons

These solution areas come together to really ignite the paradigm that will really be the future of computing the Intelligent Edge and the intelligent Cloud To a number, all of our solution areas will get better in FY20 The innovation that we’re bringing forward is simply fantastic You’re going to see more collaborative capabilities in Teams, more AI capabilities enriched in Teams, differentiation by industry, investments in security and compliance True richness in the modern workplace Our business applications will have AI Out of the box, Mixed Reality capabilities, open data, common data models so that you can innovate on top of them and unlock new business solutions at scale In Apps and Infra, we’re going to invest in IoT, we’re going to invest in hybrid capabilities, DevOps is really got to be for us something that we all work on together because it is really what unlocks this notion of democratizing digital and empowering developers, GitHub is a first-class citizen for us here at Microsoft Of course, in data and AI, you’re going to see some just fantastic things We’re going to bring you limitless data, unlimited analytics, HoloLens 2 will come to market, mixed reality services will be open and available for you to innovate on top of and inherent in your solution, and of course, our AI services will become richer and more powerful so that you can bring the future forward and enrich the work that people do So there’s no question that the Microsoft Cloud is differentiated because of our four solution areas, because of the richness of our offerings, and the fact that you’ve invested by solution area to deliver this capability to market will differentiate our partner ecosystem above and beyond any other in the industry So listen up, I want to really bring home why I passionately believe we can democratize digital together Let me tell you why, because you are doing it today I want to take you on a small tour around the world to talk about the solutions that really inspire me based on the work that you’ve done I want to start first in Spain or Juanio, a Microsoft MVP developer, and also a person who is blind and his wife who is also blind, who take care of their four-year-old child Simple things that you and I take for granted like crossing a street, the questions that need to be asked and answered, is it paved? Are there potholes? Are there cobblestones? Is there a ramp? Now we amplify that on top of life experiences like, I want to take my child to school I’m going to take them to a game. I want to travel I want to experience the world and enter our partner Moovit, who’s really advanced the capabilities and mobility as a service for accessibility They enable Juanio and his wife to take care of their child to make complicated things easy It really is a fantastic example of the few helping the many Moovit is a very small company, yet they’ve already impact the lives of 400 million people around the world in 2,700 cities and 90 countries, the few empowering the many will democratize digital So now I want to take you to Kenya where Monica, the farmer, and farming is not just how she takes care of her family, it is also her livelihood Water is scarce. For her it’s delivered by hand, and hand farming and taking care of your animals is really not only laborsome, she spends more than 17 hours a week fetching water It’s also highly inaccurate and the yields are terrible Enter our partner SunCulture, who’s to help her deliver solar-powered irrigation to her farm Her crop yields are up 300 percent Her income has increased tenfold Not only can she provide for her family, she can thrive in her community We are truly enabling everyone to participate in the digital economy That is what’s democratizing digital I want to take you to Canada where Dr. Benjamin Haibe-Kains and Dr. Pugh who work at Toronto’s University Health Care Network are revolutionizing cancer treatment They have a theory that says, if you can take millions of cells, millions of cells and cross-references them with tens of thousands of different tests and clinical trials, you can actually prescribe a personal cure for cancer for a patient highly accurate The challenges is that it takes months and months to actually reason over that data Enter our partner [inaudible] ,

who’s connected the network of labs, enabled labs to share data They’ve now taken the laborious task what used to take months and months to do and delivered it in just days This can save lives at scale Frankly, this is what I mean by when I say we can actually put technology to work to eliminate mundane tasks so that people can focus on what matters most I now want to take you to Peru and to my friend Ahinio Ahinio had a dream of creating a market and having a market in his local town in Peru, but he’s one of the over two billion people that the world considers to be unbankable Enter Mibanco and our partners ITG Solutions and GS Sistemas, they actually can bring banking to the unbankable ITG focused on enabling Mibanco on Azure and just see and help Mibanco build their mobile app that empowers Ahinio not to just get a loan for one market or two markets, but to actually open up three markets because of the intelligence and telemetry and the platform that helps Mibanco’s loan consultants enrich Ahinio’s lives This is bringing a digital experience to everyone and empowering everyone to benefit I’ll then travel to our last stop in Pune, India where Mani works in a mill on PV and Sons His job before technology and this digital revolution was to manually inspect all of the grains in the mill Just a handful of toxins can destroy profitability for PV and Sons and put hardship upon all of those who work there but worse yet ruin the food supply for an entire village Enter Buhler who builds massive scale grain-sorting machines that the world can afford and our partner Codit, who’s brought computer vision technology to Buhler’s equipment Again, the elite devs bringing their capabilities to the citizen developers so that Mani’s job has changed Mani is now a computer vision’s specialist His work has been enriched His work has been enriched so that he cannot only do his job effectively but truly, truly experience democratizing digital So why do I think we can do this? I think we can do this because you are doing it today I want this to be our shared aspiration It’s deeply meaningful for me So join me in this journey Let’s democratize digital and empower everyone to have a digital experience and enable everyone to participate in the digital economy. Thank you [MUSIC] >> Wow. Now, look out at all of you, I am in awe of your ideas, your innovation, and the work that you and your teams do Why? Because we are surrounded by technology in everything we do and we don’t even see it Take my trip down here, for instance I order my coffee on an app, pick it up without ever standing in line I check into my flight on another app, sit on the plane, and I work on Wi-Fi the entire way down like it’s another day in the office Then I use another app to pick up my luggage so it never gets lost That’s a routine I have had forever, but the technology makes that experience completely different We take universal experiences like this for granted now, don’t we? But everyone in this room knows that those experiences don’t just happen, do they?

We all know how much work it takes to make every single one of those experiences seamless How many partners are behind everything that we do every single day, hundreds? Thousands? I know behind my interactions with Starbucks and Delta Airlines alone, there are 97 Microsoft partners that made that experience seamless Well, the technology, it’s cool but it’s not magic, is it? The magic happens when your teams meet our technology and we come together in a partnership The magic is in the partnership Think about that What does the word partnership mean to you? To me, it’s a powerful word It is the relationship built on commitment, integrity, and trust Trust do not come that easy, does it? Okay. Now I’m going to try something I want all of you to take out your phones Come on, take out your phones I know a lot of you already had them out, but fish in your pockets or your bags, take out your phones I mean like I mean it, everyone Everyone take out your phones Unlock your phone. Unlock it I know pressure All right, unlocked? I want you to turn to the person next to you and hand them your unlocked phone Let them look at your e-mail, your text, whatever it is you’re doing a few minutes ago on your phone Hand them your phone. All right? >> A little uncomfortable, isn’t it? Did you take pictures of each other? It’s a little uncomfortable because trust really doesn’t come that easy, does it? Like if I ask my kids to do that no way Because trust is something that you have to earn It’s something that we work at every single day Trust is fragile I remember is almost 20 years ago and Microsoft was going through a trust crisis We were a big target and we were getting hacked left and right by like the code read and the ninja worms, do you remember that? We had broken trust with our customers and a lot of you, our partners I remember I was in building 22 which is this ugly boxy building, ugliest building on campus. It’s still there I was in this really boxy gray office and it was gray outside because it was early winter in Seattle I was worried I was worried about our customers and I was worried about our future because I really didn’t know how we were going to earn back that trust Then Bill threw me a lifeline Okay, maybe not personally but he threw me a lifeline in the form of a memo in January of 2002 where he talked about something called trustworthy computing He talked about how we were going to change and put security in the center of everything that we did That fundamentally changed from that day forward, the way that Microsoft engineered our products and security was the number one priority Then he talked about how we needed every employee and every partner in the ecosystem to come together in industry wide

cooperation to earn back the trust of our customers Those three ideas: partner ecosystem, security and trust are just as important today and relevant as they were 17 years ago Maybe even more so When I think about trust, I really think it has three dimensions: technology, relationship, and integrity Technology, that’s all about security and data privacy The relationship, that’s about us, that’s about our partnership Communication, collaboration and accountability, and integrity is about having great business practice, transparency, and compliance Let’s face it we’ve been through a lot together over the years We’ve had our ups and we’ve had our downs maybe in the last couple of weeks We’ve learned a lot We’ve grown a lot and our relationship has really changed a great deal over these years But I would say that trust is just as important today even more important today than it’s ever been Let’s face it, our traditional way of partnering was actually built much more around the supply chain Microsoft would build some software partner might resell, partner might integrate it, manage it, deploy it, support it, and it was a series of hand-offs There wasn’t as much trust required in those hand-offs The Cloud services fundamentally changes the basis of our relationship Cloud services collapses that supply chain and requires each of us to provide persistent and always on services to our customers So it blurs the lines between what we do We no longer have these unique and distinct roles to play what is the platform or the layers of the platform? What are the solutions? What is the managed service? We each need to provide all of those things all the time and we are each equally accountable to the customer We can’t afford even a single point of failure or the whole system fails That requires a whole new level of trust, doesn’t it? That requires a network of trust We have to work together in a way that’s consistent and persistent and constantly innovating together But when we do that right, magic happens It opens up an opportunity for us to co-create, co-innovate and collaborate in a whole new way which enables us to co-sell in the market and to create services that are more repeatable, more scalable and more profitable for everyone than they have ever been I think you-all know what I mean That’s why I believe that we have moved from partnering to partnership Because while it may be the technology that brings us together, it is the partnership that keeps us together Lots of market opportunity, lots of stuff we can do, but what are we going to do, so pay attention because the next 10 minutes, these are the money slides All right. So Judson framed out the four commercial solution areas What I want to do is I want to go a level deeper and I want to talk about what are the specific market opportunities that we’re going to go after this fiscal year to really drive our profitability and growth So there are six of them In modern workplace, it is all about teams and security

Business applications, Dynamics 365 and PowerApps and applications and infrastructure This is the year of Azure Cloud migrations and in data, it’s all about analytics and AI So where do we start? Lots to do How about we start with security because it all starts and ends with security Security forms the basis of trust between us and our customers Do you know that Microsoft spent nearly a billion dollars a year in R&D on security We build it in to every product every technology and every service that we deliver so that you can feel confident when you work with your customer that is just there But then, how do you make money on it? Well, it starts with modern workplace No I was just having this conversation with Rackspace a couple of weeks ago Rackspace has traditionally focused on the small and mid-size customer and their value proposition was framed around the delivery of a mailbox but Rackspace found they had declining profitability and their customers were asking more and more about Cloud security So they pivoted their service to focus on security on Microsoft 365 They built a security assessment that they could deploy remotely to the customer and identify any gaps in their environment and then they remediate those gaps with Multi-Factor Authentication and conditional access Using remote service monitoring, they now have a new managed service It’s Security as a Service on Microsoft 365 This has been a win-win for Rackspace and their customer because their customer now has a secure user environment Rackspace and the customer now have a platform of trust between them Rackspace has seen 100 percent month over month growth in their Microsoft 365 for Business business Now that, it’s the last 10 months by the way and I double-checked that number twice That’s a way to turn around your profitability, isn’t it? That solution is both scalable and repeatable and relevant to customers of all sizes So while they focus on small and midsize customers that is actually relevant to customers in the enterprise But Rackspace is really on to something, focusing on that small and mid-size business customer Because you know that there are 76 million customers in SMB, it is an $80 billion market opportunity and Office 365 is on less than 10 percent of those customers That is a lot of upside for all of you Now, once you have that secure socket from which to build literally, then you can start to add additional services like Teams So how many of you think that Teams is just a Skype replacement? How many of you are actively using Teams? Okay. So for those of you who don’t have your hands up, I want you to stop by the hub this week because you already promised me you would get it on your phone, but I want you to really check it out to see what you can do I love Teams Teams is my all in one shared Workspace It brings together for me my telephony, my meetings, my chat, my conversations, my documents, and all of my relationships We believe that Teams is where people will start and leave their day, whether they’re on a laptop, a desktop, or a mobile device from the time they log in to the time they log out How many of you remember the explosive growth of SharePoint about a decade ago? Teams is already on a faster trajectory than that So a couple of months ago, I challenged you to send me your very best Team stories, and many of you did So I want to thank everybody who sent in a great Teams story, it was awesome I promised that I would share the best of the best here on stage So here you go [MUSIC] >> Elior Group is one of the world’s leading operators in contract catering and support services Its mission is to feed and take care of each

and everyone at every moment in life >> [inaudible] is a top real estate company in China, and they are working on future or smart building project They needed to frequently communicate with their partners to join development via smart building competence >> Slalom Delta help Teams have a solution for critical care coordination team and one of the nation’s largest health systems Given the conditions access to all the information at their fingertips >> Then you had the challenge of transforming the teamwork in the organization to address all the different business lines they had >> Microsoft Teams help us improve teamwork efficiency to support digital transformations, and better realize our missions >> As part of the Business Solutions, sales team is integrated with CRM platforms such as Salesforce and Microsoft Dynamics 365 >> We leveraged Microsoft Teams as well as Office 365 and Azure to provide an enterprise grade level and to help protect development from the solution Microsoft Teams provided an entity with UI that help us to reduce more than 40 percent development efforts >> At Slalom, we were early bed on Microsoft Teams Before us is the opportunity to try and guide our customers to re-imagine and transform their operating models and empower enterprise-wide Power driven Data Analytics cultures that will unlock and accelerate remarkable business outcomes >> Microsoft Teams gives access to information from anywhere on any devices >> Wherever you are, you have access to your Teams share files, documents, and notes >> From an ISV perspective, it’s fantastic opportunity because Teams features are automatically available everywhere on the desktop and mobile >> I believe that Microsoft Teams has the opportunity to become the operating system of the future for Businesses >> Team sees Windows for collaboration >> It’s awesome. The best thing about Teams is the way you can skin it and build on those APIs just like Slalom, Metal Stuff, and Sales Team have done, where you are able to bring the entire business process and create a whole new user experiences You can bring all of the business applications to the forefront of that user experience in one single shared Workspace The bridge between Teams and the backend of those business applications is PowerApps So let’s talk about that business application opportunity PowerApps is that citizen developer tool, it enables your Teams to build connectors, to build integration, to build new applications, and bring you-all the way back into business applications So let me tell you what I mean There is a customer on the big island of Hawaii, one of my favorite places in the whole world, and their name is Jack’s Diving Locker Palmetto Technologies helped Jack’s Diving Locker move to Microsoft 365 and Azure When they were done, the owner asked, “Hey, we have this online schedule board Is there anything you can do to update it because it’s really old?” So Palmetto Technology brought in another Microsoft partner confluent to help rebuild this application Within two weeks, confluent was able to rebuild the online schedule board into their new environment and wire it all the way back into their ERP system using PowerApps Now, Jack’s employees, they can manage and track their schedules, they can track their equipment and their certifications from anywhere even when they’re out on the boat in the water, that’s cool Confluent is way ahead of the curve They have already built over 500 applications using PowerApps That is a market that according to Forrester will triple in the next three years from $6.5 billion today to $21 billion But that isn’t even the half of it Because what PowerApps enables you to do is to bridge back into the heart of a customer in their business applications Then you have the opportunity to look out over all of their applications and see what could be migrated to the Cloud, what could be rewritten, how you help that customer completely re-imagine

their business in digital transformation using Dynamics 365, and that market is more than five times bigger, that market is $134 billion market opportunity There are partners like Stone Forest IT who are doing a great job of helping customers already So Stone Forest IT is a partner in Singapore, and their customer, I love this customer because they are a pioneer in car sharing Their name is Car Club They started car-sharing before this was anybody else’s idea business model because they started this in 1997 The challenge is that the technology they’re using now was still like in 1997 So they had a lot of different applications that didn’t talk to each other and a lot of disparate data sources, and it was really holding them back Stone Forest IT came in, and they built them an end-to-end all in one business management system using Dynamics 365 Now, Car Club is able to completely re-imagine those customer experiences, they have increased profitability, they have increased revenue, and they are poised for growth, maybe even a market near you That’s what you can do when you think holistically about your customer When you think about bringing the back-end of their business applications all the way through to the front end of user experiences like Teams So now I’ve talked to you about two of Microsoft free Clouds and where the opportunity is We talked about Microsoft 365 We talked about Dynamics 365 I want to talk about the Azure platform Many of you are already doing a great job We have moved a lot of customers this past year and I want to thank you for the work that you’ve done There’s one partner that really stands head and shoulders above the rest in the work that they’ve done and that is Accenture and Avanade There’s a lot of them here obviously So a couple of months ago I was asking them what was their best practice, and they shared with me that they have this flywheel of success As they were sharing with me what they were doing, I timidly asked if there was any way they would let me share it with all of you here to inspire and to my surprise they actually agreed So that’s what a network of trust will buy you So I’m excited to be able to share with you the ready by design flywheel of success go-to-market framework that Accenture and Avanade uses and I’m actually going to explain to you how it works So they go into a customer and they identify a server workload and they do a Cloud assessment and they immediately start migrating it to the Cloud This isn’t a six or 12 month projects This happens right away and they use that to build a business case to go back to the business decision-maker and then identify the next Server Workload and the next Server Workload and the next Server Workload and pretty soon, they have dozens of projects going with this customer This isn’t limited to just their Windows Server environment When they’re doing these assessments, they identify OSS workloads that they can move to Azure, SAP migrations they can move to Azure and they find themselves in a conversation with the customer about a complete application platform modernization redesign and roadmap So that Windows Server SQL Server conversation really is a catalyst for a whole new set of services and book of business with that customer Once you’re in, you’re in and that earns you away into the real conversation that you want to have because every single one of us knows it just moving legacy workloads to the Cloud is not really what the Cloud is all about, right? But the Cloud is all about where you get the power of the Cloud is when you can drive digital transformation like Judson was talking about with Unilever, and you have to earn your way into that conversation We have barely scratched the surface there because if you take all of the work that we’ve all done that every Cloud service vendor has done over the last few years, we are still only five percent of that total addressable market, and that market is poised for explosive growth and we want to help you take advantage of it

So you’ve told me one of the things that’s holding you back is Azure skills You don’t have enough skilled individuals to really drive that We’re going to invest in helping you train up all of your people on Azure skills, and not just your teams but we’re investing in our teams, we’re investing in our customers, we are investing in the market to help you grow new talents Then we also want to make Azure your best platform for delivering managed services to your customers So we’re investing in you with a new service that we call Azure Lighthouse Azure Lighthouse builds partners in by design into Azure by enabling multi-customer, multi-tenant management at scale in a secure environment with automation So that Azure becomes your best platform to deliver those managed services to your customers, and we’re going to continue to invest in that service for you Once you unlock Cloud migrations, you unleash the customers data and data is the currency of the Cloud Then you have the opportunity to start reasoning over that data to build intelligent design with AI and analytics and help the customer to re-look at their whole business and think about it in a totally different way and think about their business decisions completely differently, and that moves you from being a strategic supplier to a strategic adviser I know that that is a place that we all want to be So I ask you, which of these six opportunities are you going to take advantage of this fiscal year? If you’re all doing some of these already, how are you going to turn up the volume so that you really take advantage of it? That’s what I want you to do this week I want you to work with our Microsoft Teams, talk about what you’re going to do, work with each other, build your businesses and walk out of here to inspire with your business plan Okay. But I know now you’re probably saying, “Yeah okay, Gavriella, but like you’ve only told us like a third of the business plan which is, what is the opportunity? You didn’t actually talk about what is Microsoft doing and what are you going to invest in.” I guess I’ll tell you that too So Microsoft, every July, we kick off with a set of themes about what we’re going to do internally and it is ready as well as inspire and so we’re going to be sharing this with all of our teams this week So there are three core themes to our fields this year Technical intensity, customer-centricity and simplicity Technical intensity is all about raising the level of the conversation with our customers to match the technical intensity in which they are living today Every single customer is a technology company We all need to raise the bar on the conversations that we have about their business and how technology can work within it So that means that we have to invest in delivering better skills to everybody to be able to have the right conversation So we’re investing in all of our teams across the field and it has a side benefit to you because every investment we make in training our teams we immediately deliver out to you, and it means that all of our Teams will help you in a much better way to build your businesses on that technology and when you’re side-by-side with our Teams with a customer, you get much more technical savvy people Customer-centricity is all about putting the customer at the center Building our not trusted network around each and every customer, working together in unison to help them to manage their now collapsed supply chain Simplicity, okay, don’t laugh, it’s a lifelong journey Okay. This year simplicity is about simplifying the roles within our field to enable people to navigate and orchestrate in an easier way So you can go to some sessions and learn more You can talk to your PDM to learn more We’re going to simplify, of course Now I’m going to tell you about the flip side What investments are we going to make in you? We’re making a lot of investments As matter of fact, even more so now about $3 billion this year we’ll invest in

you and you can hear a lot about that at all of these sessions The investments, the programs, the resources, the incentives But what I want to do is I want to talk about three because they’re the most important and they’re all about connecting you to customers The first one is marketplace The second one is CSP and the third one is Co-Sell Marketplace, now last year I told you that you want to be in the marketplace, and many of you heeded my advice We now have over 12,000 applications and services in the marketplace We’re delivering over 350,000 leads every single month on those solutions out to you We’re doing about $90 million a month in the Azure marketplace which is really enabling services We started a pilot on what we call transactable offers in App Source and that’s really where you want to be So this year I’m going to say that not only do you want to be listed in the marketplace, but you actually want to have a transactable offer because that enables us to activate three additional channels to market for you One is the marketplace itself where the customer can buy directly on your paper The second is enabling us to pull your services through our sellers on our paper, our Microsoft paper The third is to enable all of those partners transacting CSP to be able to pull your services through their paper in CSP So that is not only activating 22,000 Microsoft sellers all around the world But the 70,000 Microsoft partners that we have transacting through CSP on your behalf >> We are going to incent our sellers on your services, we are also going to incent our partners through CSP on your behalf and we will put more go-to-market dollars in for every service that you have listed in App Source as a transactable offer So I talked a little bit about how our relationship has changed, the tables have turned and we have become your channel Think about that. So let’s talk about the flip side The flip side of marketplace is CSP If you are delivering services, CSP is the way that you want to deliver those services into the marketplace because CSP enables you to embed not only Microsoft’s first party services, but any of those third-party marketplace services into the packages that you offer to your customers You can make them completely unique and differentiated out to your customers and then provide managed services on top of that This year, we’ve already crossed the four billion dollar mark in CSP together and we have over 3.5 million customers under contract in CSP now Those partners transacting CSP are seeing 40 percent year-over-year growth This year, we’re moving CSP onto the modern commerce platform which enables us to actually collapse that delta in the Azure engineering roadmap so that we can deliver all of those Azure services to you through CSP and it enables the customer to be more mobile on their purchasing We’re building in by design, security and data privacy through multi-factor authentication and Azure active directory So when you take those two investments, what it enables us to do is to co-sell even more together in the market We’ve had some tremendous success together in co-sell We have sold almost $9.5 billion of your services in annual contract value through our sellers I think that we might have discovered the secret sauce because the secret sauce to co-sell is you We’re selling your services and your value to our customers together and when we do co-sell, we find that our deals close by almost three times faster, the initial project size grows almost six times larger and the Azure consumption grows almost eight times higher So that’s something we want to continue to invest in and we want to expand it So not only are we going to expand it out through our CSP partners,

but we’re moving beyond Azure into Teams applications and Dynamics 365 applications as well But we need to make this process easier So how many of you have heard of something called partner sales connect? Yeah, I know you can moan, it’s okay We have completely re-imagined this experience and rewrittened it in partner center APIs So now we are enabling you to use your own CRM system to manage your opportunities, manage your leads and manage your pipeline Through these APIs, you can pop up lead sharing and we will funnel it all the way back to our specific sellers through our MSX CRM and our sellers can pop up their lead sharing all the way up to you through those same APIs right into your sellers so that we can have a much stronger connected experience without all that overhead But don’t take it from me because I am not in that every day, take it from our partner Sentral in Australia >> Microsoft partners has changed the way that we worked with Microsoft, it’s a much easier tool to use It takes the admin burden out of it for us and allows ourselves time to focus on closing deals We’ve had 40 odd deals closed in the last six months and we’ve got 20 more in the pipeline, it’s just really step changed the way that we’re working with Microsoft Team >> That enables us to capture more opportunities to reach more customers because partners make more possible It enables us to make more of a difference and enables us to make more change in the world because after all, we are about more than just making money, right? It is July in the US which means that it’s the beginning of hurricane season here and every year, more than thousands of people all around the world die in natural disasters What if we could take the power of our network and help people in their darkest hours? That is exactly what two partners, Innovo and InMobi have done when they teamed up with FEMA, the US Federal Emergency Management Agency They pulled together Telco data services, location tracking and Azure AI to help first responders locate and find disaster victims and save their lives I believe when we work together, anything is possible >> XPRIZE is a non-profit, a social impact organization of people working to solve the world’s grand challenges and accelerate abundance for all We’re currently tackling carbon emission, zero-waste mining, the future forest and sustainability in general We do that through designing and operating competitions that stimulate and insentivize the crowd to accelerate technology and science to solve those grand challenges Crowds and crowdsourcing by definition, produce huge quantities of data in insights >> We realized first of all in order to get the right answer, you must first ask the right question As human beings, our biggest challenges is the cognitive bias, so we build an engine to be able to generate those questions in any type of domain, on any type of challenge >> So when we think about all of the pressing issues that we face as a society, we can no longer afford to wait for the next individual to have their sort of aha moment We want to crowdsource the aha moment to the masses The research studio that we have is really like having your AI side cake What it does it basically allows a human researcher to unlock the power of all the knowledge that’s out there that the researcher wants to know, what is causing a particular problem, fetch and goes out reads all the information to steal the most relevant information and helps build a knowledge graph that explains that >> The future of research is about bringing machines and humans, expedite the pace in which research is done but also tapping into way larger quantities of information that previously were untapped This information has the potential to inform us of important steps and solutions to some of the world’s grand challenges This collaboration with SparkBeyond will lead to more data,

faster analysis, and better insights >> I believe that social responsibility should be part of our DNA of who we are as human beings and should be part of the mission and vision of every organization and I believe that the AI equipped us with an unparalleled opportunity to do social impact at scale that we as humans never were able to experience before >> We need everyone everywhere, it will take all of us and we have to do it now before it’s too late >> We’re going to see some tremendous developments of cancer research, the climate issues, to deforestation, to food, water everything, it’s longer far fetched dreams This is going to happen in our lifetime [MUSIC]

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