Microsoft UBS Conference Notes

Microsoft (MSFT) Management on UBS Global Technology

Rajesh Jha – Executive Vice President, Office Product Group

Satya brought a pretty big shift in culture

“So from a culture perspective, I would say perhaps the biggest impact was bringing the mindset, learning mindset, or growth mindset, where it’s about being humble, it’s about being open-minded, about intellectually curious, trying stuff, not being afraid to fail, learn quickly from failure. That was a pretty big shift, you know, it seems really an obvious thing for us to do, but it was a pretty big shift that he brought to the table.”

“And then brought a much sharper perspective on customer obsession, being connected to the customer. And then I would say under his leadership the third aspect I would add is probably more than ever before working as One Microsoft. So building on each other and getting the efficiencies from that.”

The key to AI is having unique data

“It’s huge. I mean look, the first thing when people tell you they do AI, the first thing you’ve got to wonder is do they have unique data, do they have unique signals. In Office we have billions and billions of data points as our users interact with our products. They are signaling us. When I share a document with you, Brent, that’s a signal. If I e-mail if somebody sends me e-mail and I dwell seven or eight minutes on that e-mail versus my typical minute or two, that’s a signal. And all these signals and all the data what we do with Office 365 is we treat them as a customer’s data and customer’s signals. So then what do we do? Now we’ve got lots and lots, billions of endpoints of data and signals. Then we bring in machine learning and AI techniques and natural language processing to give back the end user or the customer unique insights.”

Example of AI use in word

“Let me give you a couple of examples. Let’s say you’re editing a document in Word and you’re preparing a report and then you think maybe I want to reuse a chart from a report I had seen somewhere in my work group and you didn’t quite remember who had shared this with you, but you want to use one of those charts. So what we have today as a feature now in Office 365 is called Word Tap. So you’ll literally one tap onto the ribbon and we use the AI technique to bring all the relevant documents that you’ve seen in the past that may be interesting to the content that you’re writing now, and we auto-bring those things into you right pane. You can scroll in the right pane. You can tap on the chart that you see, and boom, it’s in your Word document. And so instead of going leaving Word, going and doing a search, find the filter you searched on, remember who sent you that thing, the AI signal brings it back into Word.”

24m consumer subs to Office 365

“So one thing we haven’t done a lot is we haven’t talked about Office 365 consumer business. We are quite happy with our consumer business. We have 24 million subscribers today for Office 365 in the consumer space, and the value that our users get there is they get a terabyte of storage in OneDrive, and OneDrive is a great integration as you just mentioned back into the core devices. And then an always up to date client, all the AI features I talked about start to show only for our subscribers.”