Miscellaneous Earnings Call Notes 2.6.16

Amazon.com (AMZN) Management on Q4 2015 Results

Brian Olsavsky

Distribution partners have not been able to handle all the capacity that we need at peak

“what we’ve found is in order to serve – properly serve our customers at peak. We’ve needed to add more of our own logistics to supplement our existing partners. That’s not meant to replace them. And those carriers are just not – no longer able to handle all of our capacity that we need at peak. They have been and continue to be great partners. And we look forward to working with them in the future. It’s just we’ve had to add some resources on our own. You mentioned trucks. The Amazon trucks, we did invest in those – this past year. We use those primarily for movement between our warehouses and our source centers.”

Microsoft (MSFT) Satya Nadella on Q2 2016 Results

Security is now a major driver of cloud adoption

“Security is now a major driver of the cloud adoption. As threats become more frequent and sophisticated, Azure’s unique technology like machine learning empower customers to adapt to these new realities.”

AI will be at the heart of every business in the future helping to understand the past and predict the future

“At the heart of every business in the future will be systems of intelligence, powerful AI that helps people understand the past and predict the future. Cortana Analytics is the building block for these systems of intelligence. ”

Flextronics International (FLEX) Michael M. McNamara on Q3 2016 Results

See weaker industrial demand pull through

“As far as the macro, what we see is kind of broadly across the industrial set of businesses particularly – probably more so in the United States, but also in Europe. We see it’s just been a challenge. We’ve started seeing the macro push probably in the September quarter. We talked a little bit about it – maybe even at the end of the June quarter. We continue to see it going into the December quarter. And our forecast for March reflects kind of a weaker industrial demand pull-through.”

United Rentals’ (URI) CEO Michael Kneeland on Q4 2015 Results

Market activity is solid and in many cases trending upward

“Beyond the current market uncertainty, we agree with the industry forecasters that there are multiple years of growth ahead for rental in North America. The latest projection from Global Insight is about 6% annual growth in construction and industrial rentals through at least 2017. And we’re seeing levels of customer activity to support this view. That point can’t be lost when revenue flattens out for reasons I mentioned earlier. So it’s important to note that our actual — market activity is solid and in many cases trending upward. And our customers are on a whole optimistic.”

Honeywell International (HON) David M. Cote on Q4 2015 Results

Not seeing negative surprises in January

“Right now, I’d have to say it feels just fine. I know last year we got surprised the other way. This year we’re not getting surprised. But it’s three weeks, so who can tell how the whole thing’s going to go? But it’s – I would say we’re not having to deal with the same kind of negative surprise we had last year.”

Big thing in aerospace for us is that flight hours continue to increase

“if you take a look at what’s happening in the aerospace industry, the biggest thing for us is that flight hours increase. And flight hours last year were up 4% or 5%. They’re likely to be up 4% to 6% again this year. And the big thing is that planes fly, and as long as they fly, and as long as there’s a need for the kind of upgrades that we keep talking about, and as long as the technology keeps progressing towards this kind of connectivity and the need for airlines and passengers to just be connected better than they have in the past, those are all good phenomena for us.”

No doubt it’s a slow growth environment

“there’s no doubt, it’s a slow growth environment. That being said, whether it’s slow growth or high growth, we believe your best bet is Honeywell ”

Colgate-Palmolive’s (CL) CEO Ian Cook on Q4 2015 Results

It’s difficult to find anybody with anything optimistic to say

“it is difficult to find anybody with anything optimistic to say about much of anything these days. Without being overly general, I would say that the underlying consumer sentiment and behavior in China and India is okay. I would say that the underlying consumer sentiment in Mexico is okay. I would say that the underlying consumer sentiment in Russia is not great. And that would be English understatement. And I would say in Brazil, the underlying sentiment in Brazil is not great.”

Mattel (MAT) Christopher A. Sinclair on Q4 2015 Results

Richard Dickson – President and Chief Operating Officer, Mattel, Inc.

Barbie still relevant

“never has Barbie been more diverse on so many dimensions and more celebrated. TIME Magazine’s cover story and associated buzz last week are great examples that underscore not only how powerfully relevant the Barbie brand is, but reinforce that we’re on the right track.”

Ralph Lauren (RL) Stefan Larsson on Q3 2016 Results

Our performance over the last couple of years has been very disappointing

“And when I looked at our performance over the last couple of years, including the recent quarters, it’s very disappointing. So I see significant untapped value in both the idea behind the brand and as well as how we drive the business. And therefore, in the way I outlined the way we approach, building the growth plan for the future, there will be a customer facing component which is about evolving the brand, evolving our product, marketing, shopping experience, and then radically improve some of our business engines. ”

The consumer is now in charge in retail

“When it comes to the disruption, I’m a firm believer that we’re just seeing the beginning. So I believe that the biggest disruption is that the customer is now in charge. So the customer has better visibility and better choices than ever before. So any company that’s in the business of providing generic products or don’t have any real value add beyond the lower and lower price or who, more importantly, is not close enough to the customer will be in trouble. So that’s why we are building on the strength that’s made us great, and we are adding an even closer focus to what’s going on in the market and what’s going on with the customer.”

Microsoft at UBS conference Notes

Microsoft’s Management Presents at UBS Global Technology Conference
Amy Hood – Chief Financial Officer

Realigning reporting segments created more clarity and focus organizationally

“I do think what Satya very deeply brings is a focus on where we have a unique reason to exit and the word that we call those are our ambitions, three of them, for ease there are also our reporting segments now, so sort of makes it more cleanly aligned. That resulted in great focus on the engineering side in terms of where we are going to spend our money, where we are going to put our engineering talent and where we are going to focus our execution muscle, which make us very good.”

It feels like the pace is picking up here

“given the segments that we can make progress in, there is a lot of room for us. We continue to be ambitious here. And I think that’s the statement I would make. In general, right I mean, I think this is the place where the pace of the transition is quickening because I think people have kind of seen in the last couple of quarters that it’s spelled that way, I think, in market. It feels that way to us. The pace is sort of picking up. ”

We learn from companies like Starbucks’ culture

“There are companies even locally that I think we learn a lot from, Starbucks. Starbucks has a clear vision of their reason for existing on the planet. When you talk to them, there are 300,000 people who can tell you why they exist, literally, 300,000, consistently. The culture is so deeply understood in every part of their being. I think that is such a monumental testament. The consistency of the strategy and a culture, and I think, we’re working really hard on that. But we’ve got a ways to go because we run a pretty diverse business.”

I’m not afraid to beg borrow or steal when somebody does something better than we do

“I have to tell you, I’m not afraid to beg, borrow, steal, learn and that’s a sort of culture normally have to have. If somebody does something better then less, let’s learn how they did it and do better. And I think that’s a cultural thing that people have to appreciate it different.”

You should always have things you’re working to improve

“there is so many things I look and say I’ve learned in the past two years that we can do better and the list is sort of very long and it always should be. Like as a leader, if you’re not thinking you can do something better, do something different, try it again, take a different approach, then you’re probably too proud or too clueless”

Microsoft FY 1Q16 Earnings Call Notes

Time is our scarcest commodity

” Clearly, how people work has changed dramatically but one thing remains true, everyone wants to get more out of every moment of their life. After all, time is our scarcest commodity. That’s why we set out to reinvent productivity and business process. ”

There are only two enterprise cloud platforms at massive scale

” Before I talk about the great progress we are making with our intelligent cloud platform, I want to pause and reflect on where we are as an industry. While many companies are developing commercial cloud offerings, there are really only two driving enterprise cloud platform innovations at massive scale, Amazon and Microsoft. We push each other and we each have a unique approach.”

Microsoft has bet on building hyper scale public cloud and creating true hybrid structure

“Microsoft has bet on a strategy to build a hyper-scale public cloud as well as reinvent servers as the edge of our cloud. This approach gives customers a true hybrid distributed computing platform that reflects their real world needs. Our unique hybrid approach coupled with high value services is clearly a structural advantage.”

Azure revenue has more than doubled

” Azure revenue and compute usage more than doubled year over year and we are continuing to channel our innovation into high growth scenarios with new features and services. ”

Bing has 20% share in the US

“Windows 10 is also driving increased usage of other Microsoft services. Specifically, Bing’s share is up to 20.7% in the US and advertising revenue grew 29% worldwide, helped by Windows 10 users asking Cortana more than 1 billion questions.”

Enterprise cloud is the largest tech shift of our generation

“We are poised to seize the opportunity of the largest technology shift of our generation with the enterprise cloud.”

We think of our servers as the edge of our cloud

“we don’t think of our server as a legacy business. I think of it as the edge of our cloud. ”

Office 365 has 60m monthly active users

“as far as the Office 365 usage itself, I talked about some of the numbers of 60 million monthly active users, the fact that our seats grew 66% year over year.”

IaaS leads PaaS and SaaS in growth

“on the mix between IaaS and PaaS and SaaS, the thing that we are seeing is, quite frankly, all of these are growing but the most interesting thing for me as a pattern is growth in IaaS leads to growth in other PaaS services or SaaS services.”

I’m very, very excited about Bing

I’m very, very excited obviously about what’s happening with Bing. I think Amy talked about we have a $1 billion quarter with 29% growth and good share position growth in the United States.”

Microsoft FY 4Q15 Earnings Call Notes

3.6B in revenue for Surface this year

“In hardware, both Surface and Xbox had an incredible Q4. We more than doubled Surface revenue to nearly $900 million this quarter, capping off a year in which it delivered more than $3.6 billion in revenue. Both consumers and enterprise customers love this device. Surface is clearly a product where we have gotten the formula right, earned fans, and can apply this formula to other parts of the hardware portfolio”

Operating income declined 3% but EPS grew 11%

“Operating income declined 3% and 1% in constant currency. Earnings per share were $0.62, growth of 11% and growth of 8% in constant currency. ”

Brazil was especially poor

“From a geographic perspective, the majority of markets performed in line with our expectations. The notable exception was Brazil, where inflation and macroeconomic volatility weighed on our performance. Overall, macro conditions remain a challenge in some large opportunity markets like China, Russia, Japan, and Brazil.”

Our server business is not a legacy business, it’s an extension of the cloud

” I’d start even with the bold view that my server business is not a legacy business. We fundamentally think about servers as the extension of the cloud. I even describe it architecturally as the edge of our cloud. Every server, for example, has things like disaster recovery, backup, and tier-ing with the cloud. ”

Growth of Azure is coming in places that we’ve never participated in before

“: when I look at the total growth of Azure, the growth that’s coming now from some of the premium services, these are businesses that we actually did not ever participate on premise at all. Even EMS, when I think about our management, our management was just about Windows management. But we now have management data protection and identity systems that cross all devices in the enterprise, including the Internet of Things, and that makes it pretty exciting. And that growth is great to see.”

Windows 10 will build into the second half of the fiscal year

” So my bullishness for Windows 10 is more in the second half of the fiscal year, and of course it will build. It will build starting in a week’s time in retail and in the upgrades, but I see this in three phases.”

Inventory always gets tight in the channel before an OS launch

” before every launch we tend to have a tightening in the channel as they prepare and run reasonably lean. This is a healthy state. It’s within the range of normal. So I don’t think of it as a delay in the way you’re talking about it. It is pretty standard in fact, as Satya talked about, in terms of the dynamic’

We don’t have good mobile devices for business, but that is going to change with windows 10

” We’re going to have great flagship phones for Windows 10. That’s actually a segment we don’t today have good devices, and we hope to change that with Windows 10. We have in fact good traction in the business segment. This is business customers who are actually buying phone devices, which is basically a radio with essentially a smartphone to be able to deploy their line-of-business applications. ”

Talking about CRM and ERP

“And it’s not just CRM. I’m actually excited about our ERP business. Some of the numbers that Amy talked about is growth in the seats. And when I think about data as the new currency, we have lots of managed seats and a lot of data which all will move to the cloud.”

Every company out there is becoming a software company

“One of the things that we realize is as every company out there becomes a software company, beyond even our traditional reach through IT, everyone has a digital office inside the company. They are, in fact, doing things in advanced analytics and using machine learning, and that’s a place where we have some very unique capabilities. So that’s another place where we’re seeing wide adoption.”

You can always get into a trap of overspending on sales and marketing in business apps

“one of the keys in business apps is you can always get into the trap of overspending in sales and marketing and not having long-term leverage at all. One of the things I feel very good about our position is how do you really build a long-term profitable business; that’s front and center to me. So we will not overspend there in sales and marketing because we do believe the products”

Microsoft 1Q15 Earnings Call Notes

9% constant currency growth

“This quarter, we delivered $21.7 billion in revenue, an increase of 6% year-over-year or 9% in constant currency. We are seeing the impact of foreign exchange, geopolitical trends in certain geographies and product transitions. We’re taking steps to respond quickly and adjust our plans as needed while we continue to move forward in our transformation.”

Customers moving to the cloud

” Increasingly, customers are choosing Microsoft cloud services to transform their own businesses, going beyond just moving existing workloads to the cloud. These results showcase our ability to transform and perform simultaneously.”

Triple digit growth in commercial cloud

“Our commercial cloud annualized run rate now stands at $6.3 billion, marking the seventh consecutive quarter of triple-digit revenue growth.”

Office is the driver

“Office 365 is clearly a key growth driver. Like any cloud service, we track how people are actually using it and we are proud that Office 365 is a vibrant, active service. Right now, there are nearly 50 million Office 365 monthly active users inside businesses.”

Azure also seeing momentum

” Azure is also seeing impressive usage momentum. Right now, more than five million organizations are represented in Azure Active Directory with more than 425 million identities. Storage is also a strong indicator of consumption, and now, we have 50 trillion objects stored in Azure, a 3x growth year-over-year in storage transactions, more than five trillion in March alone. And Azure websites are growing with nearly half a million sites hosted.”

Azure compute instances with more memory and storage than any other public cloud provider

“We also delivered new Azure compute instances this quarter with more memory and storage than any other public cloud provider, attracting more mission-critical workloads to the cloud.”

More annuity relationships

“Overall I would say there’s a secular movement that’s happening in particular with Office 365, quite frankly, it’s happening across the entire product portfolio of Microsoft which is more to what I would described as annuity relationship as well as subscription relationships.”

The way that Windows is delivered is changing

“there is actually a much more fundamental transformation happening even with how we think about Windows and its delivery ”

“if you think about when we say Windows-as-a-service it’s actually a pretty profound construct which involves us being able to not only think about what ships with OEMs, but how do we on a continuous basis, if it’s a consumer we have things now in the store, we have subscriptions, we have gaming and then when it comes to the enterprise there’s management, security, servicing which is all unique value. So there is going to be an increasing emphasis in the concept of lifetime value that we can deliver to customers.”

It’s not just a one for one shift to the cloud from existing customers

“there’s significant traction we have in terms of moving beyond just one-for-one shift of a workload that traditionally ran on our server to our Azure Cloud. In fact if anything the majority of what we are seeing is new. Even in Office 365 it’s not just one-for-one shift. Of course if you are – were using as a large enterprise Exchange and you moved to Office 365 you moved to using Exchange Online; same thing is true for SharePoint. But again take all the other things I described, power BI , Dell and the list goes on, take eDiscovery; even for the largest of enterprise these were things that had low penetration or low deployment. And so we are seeing increasing usage of that.”

I’ll take a SQL application and bring it to the cloud

” A very classic scenario would be I’ll take a SQL database application, bring it to the Cloud and then build a new mobile back end using the same data. So reuse of code, reuse of data, so you would use some amount if iOS infrastructure and then past consumption. So that’s one of the very typical enterprise solutions you will see.”

Microsoft FY 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

PC refresh boost has trailed off

“We also saw some challenges this quarter. As expected, the one-time benefit of Windows XP end-of-life PC refresh cycle has now tailed off. Additionally, we ran into unexpected issues in select geographies.”

Weakness in Japan

“our results in China and Japan fell short of our expectations. In Japan, the PC market lagged due to the macroeconomic environment along with the combined impact of XP end of support and the VAT increase last year.”

FX will be a 4% impact to revenue growth

“in Q3 we will start to recognize a higher percentage of revenue from periods with a stronger U.S. dollar than the prior-year comparison. In total, we expect that FX will negatively impact revenue growth by approximately four points in Q3.”

Issues in China

“We have in China currently a set of geopolitical issues that we are working through. We’re very committed to China as a market. We have in fact pockets of good growth in China with our cloud doing fairly well, but at the same time we’re grounded that in the fact that we need more work to do and we’re working through them and then as and when they will work out, we will let you know.”

PC Units about flat, some improvement in the consumer side of the business

“I actually think we agree with most of the benchmarks in terms of PC unit health across business, which has been stable since FY ’13 and across consumer where we see meaningful progress made in unit growth both last quarter and especially this one.”

Windows 10 is to span screens

“The core idea of Windows 10 is to build a device operating system that spans the gamut from no screens to small screens, to PCs and even large screens.”

Cultural change, we do things faster now

“while I think many people want to see it as a finance concept, it’s not. It’s a senior leadership team concept and the leadership environment that I think we’re making collective decisions faster.

I think we are applying our resources to opportunities when we see them. I think we have a freedom to make those choices quickly and I feel very good those about the decisiveness that comes with it, but also the empowerment that we give to people within our organizations to make those calls, to increase our performance without waiting to an annual budget process.”

The new windows upgrade is free because we want everyone to upgrade

“at the highest level, our strategy here is to make sure that the Microsoft Services i.e. cloud services be it Azure, Office 365, CRM Online or Enterprise Mobility suite are covering all the devices out there in the marketplace.

So that, that way we maximize the opportunity we have for each of these subscription and capacity based services. So that’s the core rational for why we are doing cross platform.'”

Microsoft FY 1Q15 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Cloud grew by 128%

“Our commercial cloud revenue grew a 128% year-over-year, the fifth consecutive quarter of triple-digit growth. In fact we’re the only company with cloud revenue at our scale that is growing at triple-digit rates. An 80% of the Fortune 500 are now on the Microsoft Cloud’

CIOs are selecting Office 365

“Office 365 had another terrific quarter and remains on path to becoming the unparalleled leader for cloud-based productivity apps. CIOs are selecting Office 365 as the center piece of their hybrid productivity solutions as they look to meet the growing mobile needs of their employees.’

Office 365, Dynamics CRM and Azure are driving cloud growth

“The cloud story I think is fairly clear at this point. The combination of Office 365, as well as Dynamics CRM in particular combined with Azure are driving our cloud growth.’

Cloud is driving server growth

“our servers have become much more competitive because of the same technology investments that we’re making in our cloud. And the used cases that we see in the cloud in many cases happen to be net new workloads, IOT was not driving our server growth traditionally, mobile backend was not driving our servers traditionally.”

Uses of Azure bring us into areas we haven’t participated in

“machine learning and advanced analytics of areas we did not participate even in the past. So, one of the things that we have seen is a lot of new used cases of Azure, which were really new Greenfield territory for us. And it turns out that the need for more computing, more storage and more infrastructure server products is much broader than just even the hyper scale public cloud because the one thing that is true is there are more devices in that unit backend.”

Think of Azure as the common fabric to deliver all of our applications

“it’s absolute perquisite for us to have entirety of our cloud infrastructure plant drive scale economics for us. And in fact, a lot of the core Azure technology around machine management and data center management comes out of our bing efforts. We manage all of the supply chain, all of it is as one supply chain; we do SKU design as one SKU design; we drive costs of both network storage, compute down altogether. In fact you should think of Azure as the common fabric of all our applications. And you look at even some of our games like Halo, a significant usage of our cloud. And that’s what’s really driving some of the economics. In fact the first — the fact that — I celebrate the fact that we don’t have just one first party workload because it’s very easy for one first party workload to completely opt if you will the architecture of a cloud. But in our case, we have a very diverse set of workload. We have Xbox LIVE; we have Office 365; we have Dynamics and Bing and that diversity is what allows us to build in fact for our own needs a cloud architecture that then can meet many more workloads and that’s working pretty well for us.”

Microsoft at Deutsche Bank Conference Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Speaker: Eron Kelly – General Manager, SQL Server Marketing

“my responsibilities are for product management and marketing of our SQL Server, all of our database or data-centric assets that are in Windows Azure, our cloud platform, as well as our BI assets, that span Office and Excel, as well as some of our new cloud properties like Power BI. So it’s sort of the data platform end-to-end is what I tend to focus.”

SQL server is a $6 B business

“SQL Server is now a $6 billion business, and from a growth perspective, it’s been growing in double digits for the last several years. And our Q4 numbers were 19% year-over-year growth”

“our market share from a units perspective, at about 46%, 48%, and then from a revenue perspective, at about 20%.”

Excel is the key to getting more people to make database driven decisions

“The way we think about it is there’s about a billion Excel clients in the world, not all of them do BI of course. And right now most people would estimate that within an organization you have 7% to 8% of employees will do BI functions. And so a lot of that’s in Excel, some of it with some of these other products.

Our vision is to go beyond that. Our vision is to get 20%, 30%, 40% of an organization using data to make decisions.”

Inside the psychology of a sales force

“And now the enterprise sales force is starting to take notice, like, oh, wait, I used to be — it used to be the Office was the big dog in every account and that’s where I would spend all my energy, but now there’s the SQL thing showing up that suddenly is bringing in similar size deals. Okay, I need to learn more about this, I need to drive this more. And when you combine that with just the market space big data is in, in general, it’s a very interesting time.”

Microsoft 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

solid revenue and EPS growth

“we grew revenue 10% exceeding the high-end of our guidance range. Moving on to earnings per share. Before the impact of the acquisition and the noted items Chris highlighted earlier EPS grew 12% to $0.66. ”

Redefined our core for the mobile first cloud first world

“We accelerated our commercial cloud business to a $4.4 billion annual run rate. And perhaps more importantly we made bold and disciplined decisions to define our core as the productivity and a platform company for the mobile-first and cloud-first world.”

Mobility goes beyond devices

“Mobility for us goes beyond just devices, while we are certainly focused on building great phones and tablets, we think of mobility more expansively.”

Two platforms at the core of the enterprise: cloud OS and Device OS

” We will be relentless in our focus on our core digital work and life experiences and the two platforms that support it, the cloud operating system and the device operating system and hardware.”

Pillar 1: Meld work and personal life solutions

“Everything we do starts with digital work and life experiences to delight dual users; these are users who use technology both at work and in their personal life. This is how we reinvent productivity. Last year, we started to take steps in this direction now OneDrive and OneDrive for business are one team. Outlook and Exchange are one team, Skype and Lync are one team all focused on those dual user scenarios.”

Our solutions are going to be on all devices

“We are clear that our experiences are going to be available on all devices. We have a specific goal for multiple Microsoft applications to be available on every home screen. ”

Bing has 19% search share

“I’m pleased to see the progress with Bing now more than 19% U.S. query share and strong RPS growth.”

Pillar 2: Cloud OS

“Our Cloud OS represents the fastest growing opportunity for Microsoft. Quarter-after-quarter, we drive growth and customer adoption. Our server products benefit from our public cloud. The fact that we use our servers to run our cloud make our server software, the most capable enabling others to build and operate their clouds.”

Saw enterprise customers recommit to windows

“We start with a focus on business customers in FY14, we saw these customers recommit to Windows.”

Pillar 3 hardware

“Let’s transition to our device OS and hardware, the third component of our core. In everything we do with our Windows OS and first party devices, we will line up our digital work and life experiences. We are approaching the Windows OS business with a bold challenging mindset and pushing both the product and business model forward.”

We are not in the hardware business for hardware sake

“Our approach to first party hardware going forward is clear. At times, we will develop new categories like we did with Surface and we will responsibly make the market for Windows phone. However, we are not in the hardware for hardware sake, and the first party device portfolio will be aligned to our strategic direction as the productivity and platform company.”

pays lip service to xbox at the very end of his comments…this business is an orphan IMO

“I want to make a few comments on Xbox. It’s important for us to have a core that’s thriving. It’s equally important to play smart bold bets in other areas…We will invest in our core console gaming in Xbox live with a view towards the broader PC and mobile opportunity.”

Acceleration in cloud revenue driven by a variety of things

” It was across Office 365, Azure and even CRM online. I think some of the important dynamics that you could point to particularly in Office 365; I really think over the course of the year, we saw an acceleration in moving the product down the market into increasing what we would call the mid-market and even small business at a pace.”

Microsoft 1Q14 Earnings Call Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Nadella’s on the call, positive change

“my first day, I have said I am committed to an ongoing dialogue with investors. Joining these investor calls going forward is going to be a big part of that, and I am enthusiastic about today’s call.”

Technology respects innovation, not tradition

“our industry does not respect tradition, it only respects innovation.”

Nadella’s vision

“When I think about our industry over the next 5, 10 years, I see a world where computing is more ubiquitous and all experiences are powered by ambient intelligence. Silicon, hardware systems and software will co-evolve together and give birth to a variety of new form factors. Nearly everything we do will become more digitized, our interactions with other people, with machines and between machines. The ability to reason over and draw insights from everything that’s been digitized will improve the fidelity of our daily experiences and interactions.”

This sounds a little like Tim Cook

“We want to build products that people love to use. And as a result, you will see us increasingly focus on usage as the leading indicator of long-term success.”

Nokia closing 4 months behind schedule

“Now, let me share some thoughts regarding Nokia Devices and Services. The acquisition will close tomorrow, which is about four months later than the deal economics we outlined in September assumed. ”

Takes time to relearn a business even when you’ve been there 22 years

“The first 10 weeks or so have been extremely energizing and as I have said for me what was important to us to reach out, talk to lots of different constituents and relearn the place and see it for the first time and just get a different fresh perspective even in spite of having spent 22 years here it’s been fascinating to get that fresh perspective.”

Cloud first, mobile first

“from day one I have had this deep conviction that our vision is about being going boldly into this mobile-first, cloud-first world.”

Using data weekly, monthly

” would say culturally Satya mentioned about being more data driven. I think in addition to the day-to-day, which was more focused on customers, I think really it’s a cultural statement about how we are going operate more internally as well. And so maybe that’s the most forward-looking comment I could tell you which is that being empowered to look weekly, monthly and see how we can get better and better and better. And I think that’s actually driven a lot of excitement around here.”