WEBVTT - Satya Nadella 0:00:01.160 --> 0:00:03.720 Hi everyone, I'm Emily Chang and this is Bloomberg Studio 0:00:03.800 --> 0:00:07.400 one point Out. A year ago, the coronavirus pandemic started 0:00:07.480 --> 0:00:11.200 creeping into the United States after taking a devastating toll 0:00:11.280 --> 0:00:14.960 across the globe. The early US outbreak was centered in 0:00:15.080 --> 0:00:20.200 Washington State, just miles away from Microsoft's headquarters. There, CEO 0:00:20.239 --> 0:00:23.000 sachan Adela made the call that a significant number of 0:00:23.000 --> 0:00:26.720 the company's one hundred sixty eight thousand employees could work 0:00:26.720 --> 0:00:29.960 from home. Now, his focus is shifting to not just 0:00:30.160 --> 0:00:33.720 keeping those employees safe, but keeping them engaged, with the 0:00:33.800 --> 0:00:37.400 rise of Microsoft's chat product teams and a new offering 0:00:37.440 --> 0:00:41.080 called Viva. All of this as Microsoft stock has continued 0:00:41.120 --> 0:00:44.040 to rise up more than five percent during his seven 0:00:44.120 --> 0:00:46.720 years at the helm after languishing for more than a 0:00:46.800 --> 0:00:51.239 decade under his predecessors Bill Gates and Steve Balmer. He 0:00:51.280 --> 0:00:53.920 shared this key guidance with us three years ago on 0:00:54.000 --> 0:00:56.880 Studio one Point Oh. It's not about changing everything. It's 0:00:56.880 --> 0:00:59.000 about changing what needs to be changed, and then in 0:00:59.120 --> 0:01:02.680 lies the tricks to speed. Since then, Microsoft's market cap 0:01:02.680 --> 0:01:06.080 has crossed one trillion dollars, now closing in on two 0:01:06.120 --> 0:01:09.360 trillion dollars. But with big tech scrutiny ramping up in 0:01:09.440 --> 0:01:13.640 Washington and rising tech competition in China, Nadella's next seven 0:01:13.680 --> 0:01:16.720 years at Microsoft will be just as critical. On this 0:01:16.880 --> 0:01:19.800 edition of Bloomberg Studio one point oh, an exclusive interview 0:01:19.800 --> 0:01:28.800 with Microsoft CEO Sacha Adela. Sacha, thank you so much 0:01:28.800 --> 0:01:30.960 for doing this. It's so great to have you. Thank 0:01:30.959 --> 0:01:32.520 you so much, Emily for having me. It's great to 0:01:32.520 --> 0:01:35.560 be with you. The pandemic has underscored the power of 0:01:35.720 --> 0:01:41.520 technology in helping companies and governments and families get through this, 0:01:41.640 --> 0:01:43.800 and Microsoft Teams has been a huge part of that 0:01:44.040 --> 0:01:46.120 and has been an incredible growth story. Give us a 0:01:46.120 --> 0:01:49.720 snapshot of just how much Teams has grown through the pandemic. 0:01:50.160 --> 0:01:52.440 As we talk a lot about remote work, but the 0:01:52.480 --> 0:01:55.720 reality is more than fifty of the workforce, whether it 0:01:55.800 --> 0:02:00.280 is in healthcare or in retail or critical manufacturing, to 0:02:00.360 --> 0:02:03.440 be uh in the at the site. And so one 0:02:03.480 --> 0:02:06.960 of the things that really got upended across industries was 0:02:07.000 --> 0:02:09.120 how do you connect people? So if you have someone 0:02:09.160 --> 0:02:12.240 on the front lines and then an engineer perhaps working 0:02:12.280 --> 0:02:15.639 from home, how do you connect So the team's growth 0:02:16.120 --> 0:02:19.520 was not just about knowledge workers collaborating but it was 0:02:19.560 --> 0:02:24.440 in fact really helping frontline workers and knowledge workers come 0:02:24.480 --> 0:02:27.680 together to keep business continuity in our society and our 0:02:27.720 --> 0:02:30.760 economy going. In fact, I shuddered to think even what 0:02:30.919 --> 0:02:33.840 the economic activity would have been, or what the state 0:02:33.880 --> 0:02:36.560 of services that we all you know, you know have 0:02:36.840 --> 0:02:40.880 today would have been but for the state of today's 0:02:40.919 --> 0:02:45.919 technologies and that cloud architecture and teams clearly has been 0:02:45.960 --> 0:02:48.800 a massive growth story for us, But it's mostly because 0:02:48.840 --> 0:02:52.720 of the context of the constraints and how to overcome them. 0:02:52.760 --> 0:02:55.280 Now you're onto what you believe will be your next 0:02:55.760 --> 0:03:00.520 massive line of business employee experience. Tell us about your 0:03:00.520 --> 0:03:04.880 newest product, Microsoft Fever. The thing that the pandemic has 0:03:04.960 --> 0:03:10.040 put really shine the light on is how important the 0:03:10.120 --> 0:03:12.600 experience for the employees is, right, I mean, when you're 0:03:12.680 --> 0:03:16.320 remote in particular, you want to be staying engaged with 0:03:16.480 --> 0:03:19.520 your business and your company and its sense of purpose 0:03:19.600 --> 0:03:22.120 and mission. You want to be able to collaborate, like 0:03:22.160 --> 0:03:25.160 as I said, between the folks on the front lines, 0:03:25.200 --> 0:03:28.200 when the knowledge workers, you want to be able to 0:03:28.240 --> 0:03:31.440 actually start learning, saying, as a new employee, I joined, 0:03:31.560 --> 0:03:35.440 how do I build that knowledge capital by learning from others? 0:03:35.560 --> 0:03:38.119 When I don't have some of the same social structures 0:03:38.120 --> 0:03:39.960 of the workplace. I need to be able to find 0:03:40.000 --> 0:03:43.680 them online learn from them as well as the learning 0:03:43.760 --> 0:03:46.280 content needs to be delivered more in the you know, 0:03:46.400 --> 0:03:49.720 the workflow tools I use every day. We've had to 0:03:49.800 --> 0:03:53.040 introduce even things like virtual commutes and so on in 0:03:53.120 --> 0:03:56.040 order to help people with transitions. So putting these things 0:03:56.160 --> 0:04:00.920 all together, the employee engagement, learning, collaboration and well being 0:04:01.520 --> 0:04:07.600 UH into one experience platform is what Viva is all about. UH. 0:04:07.600 --> 0:04:11.600 And I think that this represents a new category creation moment. 0:04:11.880 --> 0:04:13.600 If you look at what we have, the journey we've 0:04:13.600 --> 0:04:16.840 been on with Microsoft three six five. We started with 0:04:16.920 --> 0:04:21.520 individual tools, it became a collaboration suite UH, and now 0:04:21.760 --> 0:04:23.680 we think it's going to can really get into a 0:04:23.720 --> 0:04:28.360 new space around employee experience more holistically thinking about productivity 0:04:28.400 --> 0:04:32.240 not just narrowly as output, but all of learning and 0:04:32.279 --> 0:04:35.560 well being and collaboration. So if you spend your whole 0:04:35.680 --> 0:04:38.880 day in teams or word or outlook, are you putting 0:04:38.920 --> 0:04:41.039 all of those in one place? Is that what that 0:04:41.360 --> 0:04:44.440 would mean for the user? In fact, it's not that. 0:04:44.560 --> 0:04:46.920 It's the exact opposite, which is to say, use the 0:04:47.000 --> 0:04:50.080 tool that you're using for, for example, any of your 0:04:50.120 --> 0:04:53.679 communication needs or deep work needs. And then in the 0:04:53.800 --> 0:04:56.880 context of that, let us bring in the other people 0:04:56.960 --> 0:05:00.120 you want to work with, the learning content that's going 0:05:00.160 --> 0:05:03.919 to make you more productive, the well being nudges you 0:05:03.960 --> 0:05:06.599 need in order to make sure that you have the transition. 0:05:06.760 --> 0:05:09.520 So that's the main purpose of an employee experience is 0:05:09.520 --> 0:05:12.760 to not introduce one more new experience that you need 0:05:12.800 --> 0:05:16.400 to go to, but to bring an experience that you 0:05:16.480 --> 0:05:19.520 need in the tools that you're using every day as 0:05:19.560 --> 0:05:21.600 part of your work. Could this be your next ten 0:05:21.680 --> 0:05:25.360 billion dollar business? What's the total addressable market? I believe 0:05:25.400 --> 0:05:29.039 with the XP is you know HR software is there, 0:05:29.120 --> 0:05:32.240 or HCM or human capital management software is there. But 0:05:32.320 --> 0:05:36.320 it's more about really tying what happens in the HR 0:05:36.480 --> 0:05:39.880 or people operations to the entirety of the business right 0:05:39.920 --> 0:05:42.600 whether it's in finance, whether it's in marketing, whether it's 0:05:42.600 --> 0:05:45.200 in engineering. And so we think that this can be 0:05:45.279 --> 0:05:47.560 like in the years to come, in the decades to come, 0:05:47.600 --> 0:05:49.800 we'll talk about it like a CRM or an e 0:05:49.960 --> 0:05:53.920 RP class category. You have been very outspoken about how 0:05:53.960 --> 0:05:57.400 employee experience is suffering in the work from home environment, 0:05:57.920 --> 0:06:01.560 Microsoft teams data showing we're all take more meetings, more chats, 0:06:01.600 --> 0:06:05.960 more ad hoc calls, more chats on the weekends as well. 0:06:06.440 --> 0:06:09.120 What concerns you so much about working from home and 0:06:09.560 --> 0:06:12.720 this remote work period as it drags on. I would 0:06:12.720 --> 0:06:16.840 say my main thing is to not just have some 0:06:16.960 --> 0:06:20.279 new dogma about any one type of work, right the 0:06:20.320 --> 0:06:25.000 reality is everything in fact, coming out of this crisis 0:06:25.000 --> 0:06:28.359 perhaps or this pandemic, we're all going to recognize the 0:06:28.360 --> 0:06:32.760 importance of flexibility. There is real reasons why people may 0:06:32.839 --> 0:06:35.080 want to work from home, but it might be in 0:06:35.120 --> 0:06:37.599 different times and different you know, for different people. It 0:06:37.640 --> 0:06:40.120 will be different by geography, it will be different by 0:06:40.720 --> 0:06:43.680 business function, and so we need, at least from a 0:06:43.760 --> 0:06:47.560 workplace policy perspective as well as the infrastructure and the 0:06:47.560 --> 0:06:52.359 tooling perspective, build for that flexibility. So we cannot assume 0:06:52.480 --> 0:06:56.080 remote everything for all time to come, or all things 0:06:56.120 --> 0:06:59.160 have to happen only in the workplace. So I'm more 0:06:59.240 --> 0:07:02.279 fall into the camp of let's make sure that we 0:07:02.360 --> 0:07:06.080 have built in to both the policies and the infrastructure 0:07:06.080 --> 0:07:08.800 and the tools maximum flexibility, because none of us, I 0:07:08.800 --> 0:07:12.280 think we'll want to be constrained anymore, whether it's by 0:07:12.320 --> 0:07:17.640 the place or the time or the location. Even what's 0:07:17.640 --> 0:07:20.000 been the hardest part of work from home for you 0:07:20.080 --> 0:07:24.240 personally as a leader trying to run this company. I 0:07:24.280 --> 0:07:27.120 think for me it's been you know, the social capital 0:07:27.160 --> 0:07:31.120 that gets built, uh, you know in so many different 0:07:31.120 --> 0:07:34.080 ways when you're able to see the body language, you're 0:07:34.120 --> 0:07:39.440 able to learn from the accused people by watching people, uh, 0:07:39.480 --> 0:07:42.560 and some of that social capital is hard to create. 0:07:42.600 --> 0:07:46.560 Sometimes meetings can become very transactional. So to me that's 0:07:46.600 --> 0:07:49.440 probably been the hardest. I'm not saying but that that 0:07:49.520 --> 0:07:52.000 therefore we should sort of think that somehow remote work 0:07:52.040 --> 0:07:54.680 is inferior. As I said, there are times when you 0:07:54.920 --> 0:07:58.440 remote work can be very productive. But at the same time, 0:07:58.480 --> 0:08:01.240 I think we need to bring in more innovation, like 0:08:01.360 --> 0:08:04.520 together more than others to start even bridging the social 0:08:04.560 --> 0:08:08.400 capital creation capabilities. Do you think work from home could 0:08:08.400 --> 0:08:13.920 be stifling innovation? Is its stifling innovation? In fact, we're studying, 0:08:13.920 --> 0:08:17.480 We're collecting a lot of data, and the reality is, 0:08:18.120 --> 0:08:21.000 let's take our game studios right. The one place where 0:08:21.040 --> 0:08:25.240 we've seen some challenges is that the game studios do 0:08:25.360 --> 0:08:28.400 have a tough time in work from home, to be 0:08:28.480 --> 0:08:32.200 able to bring people together, to in fact collaborate, in 0:08:32.280 --> 0:08:35.560 fact watch other gamers to get the inspiration to create 0:08:35.600 --> 0:08:39.120 new content. So clearly there are some places where the 0:08:39.120 --> 0:08:42.160 innovation does take a hit. But at the same time, 0:08:42.200 --> 0:08:43.880 when I look at what's happening with some of the 0:08:43.960 --> 0:08:47.720 data around GitHub, it's fascinating to see how the world 0:08:47.760 --> 0:08:51.080 has come together, even more so in the open source side, 0:08:51.360 --> 0:08:55.120 to create critical software for very and innovate together. So 0:08:55.160 --> 0:08:58.040 I wouldn't say there's just one answer. So if anything 0:08:58.040 --> 0:09:01.160 I'm taking away is every there needs to be some 0:09:01.280 --> 0:09:05.439 structural change. Perhaps wherever there has been an impediment to 0:09:05.520 --> 0:09:08.920 creativity or innovation, one has to go back and ask 0:09:09.080 --> 0:09:11.960 what is that structural change that will allow us, Quite frankly, 0:09:11.960 --> 0:09:14.160 the next time there's another tail event and we have 0:09:14.320 --> 0:09:18.000 to work remotely or with other constraints, how can we 0:09:18.040 --> 0:09:21.520 continue to innovate. So I think that all the solution 0:09:22.240 --> 0:09:25.040 for every function and every industry is not there today, 0:09:25.080 --> 0:09:30.199 but I think there will be. This is my conversation 0:09:30.200 --> 0:09:33.520 with Microsoft CEO such An Adela. Up next with big 0:09:33.559 --> 0:09:36.400 tech facing new scrutiny from the US government, is it 0:09:36.520 --> 0:09:39.600 deja vu for Microsoft, having been through it before, during 0:09:39.640 --> 0:09:43.640 what some call It's Lost decade and deep platforming. The 0:09:43.679 --> 0:09:46.880 president should companies like Facebook and Twitter have the power 0:09:46.960 --> 0:09:50.600 to say whose voices we can and cannot here. I'm 0:09:50.640 --> 0:09:53.480 Emily Chang, this is Bloomberg Studio. At one point out 0:10:05.240 --> 0:10:08.120 it's been seven years almost to the day as we 0:10:08.200 --> 0:10:12.240 take this that you took over as CEO, and since 0:10:12.280 --> 0:10:17.160 then the stock has soared over after languishing for more 0:10:17.160 --> 0:10:19.880 than a decade across a one trillion dollar market cap. 0:10:20.160 --> 0:10:21.920 If you could pick one thing, what do you think 0:10:22.000 --> 0:10:24.839 is the single most important thing that you did, right, 0:10:27.120 --> 0:10:33.040 It's actually stunning to me that seven years have passed. Um, 0:10:33.080 --> 0:10:36.960 if I had to sort of you know, having grown 0:10:37.040 --> 0:10:42.120 up at Microsoft, perhaps even on day one when I started, 0:10:42.720 --> 0:10:45.480 of course there is a completely new job right now, 0:10:45.559 --> 0:10:48.559 recognize that, you know, the responsibility of being a CEO 0:10:48.720 --> 0:10:52.560 is different, even that from one step removed. But I 0:10:52.720 --> 0:10:55.600 came at it, I think, Emily, from that sense of 0:10:55.960 --> 0:11:00.280 pride in what this company represented for you know, in 0:11:00.320 --> 0:11:04.080 the world. I always felt that I joined Microsoft because 0:11:04.480 --> 0:11:09.800 of its mission, so reinforcing perhaps that mission sense of 0:11:09.920 --> 0:11:14.000 purpose and then having this culture of being the learn 0:11:14.120 --> 0:11:18.880 it alls has probably been the most important thing because 0:11:18.920 --> 0:11:23.000 they're they're very talented people. The opportunity, whether it was 0:11:23.080 --> 0:11:25.840 cloud or other technologies, was clear. And I think in 0:11:25.880 --> 0:11:28.040 any company, you know, you have to go back to 0:11:28.080 --> 0:11:31.360 the very basics of why do you exist? And if 0:11:31.400 --> 0:11:34.080 you don't exist, would anybody miss you? Being able to 0:11:34.120 --> 0:11:36.880 ask those questions and answer those questions and having a 0:11:36.880 --> 0:11:41.400 culture that even allows you to really honestly answer those 0:11:41.480 --> 0:11:44.760 questions is the most important thing. And uh and as 0:11:44.800 --> 0:11:48.560 an insider at Microsoft, I always felt that and so 0:11:48.640 --> 0:11:50.520 that is hot I started with. And that's how do 0:11:50.600 --> 0:11:54.400 I started even my seventh year. What advice would this 0:11:54.520 --> 0:11:58.000 such an adela give that such an adela seven years ago? 0:11:59.440 --> 0:12:03.560 I mean, the thing that perhaps was the steepest learning 0:12:03.640 --> 0:12:09.360 curve for me um as CEO was understanding what does 0:12:09.600 --> 0:12:13.439 it mean to have multiple constituents? Right? I mean people 0:12:13.440 --> 0:12:17.360 talk about it's about customers, it's about employees, it's about investors, 0:12:17.400 --> 0:12:21.760 it's about other stakeholders. And today, of course multi stakeholder 0:12:21.840 --> 0:12:25.520 capitalism is the topic that everybody is talking about. But 0:12:25.800 --> 0:12:28.360 understanding what as a CEO, what does that mean? How 0:12:28.400 --> 0:12:30.679 do you really grapple with it? And it can't be 0:12:30.720 --> 0:12:34.120 something that I will divide my week into multiple stakeholders 0:12:34.200 --> 0:12:38.320 right in equal quantities. It's about harmonizing that into the 0:12:38.520 --> 0:12:42.520 core of your business model as well as your operations 0:12:42.559 --> 0:12:46.440 of as a business. That's probably been the thing that 0:12:46.480 --> 0:12:49.400 I would say, having a framework for it. I feel 0:12:49.480 --> 0:12:53.680 fantastic about the work the entire team at Microsoft is 0:12:53.720 --> 0:12:56.880 done around it right, because you need to have a 0:12:56.920 --> 0:13:00.000 business model fundamentally where when you do well, the world 0:13:00.080 --> 0:13:02.680 around you is doing well. If that is broken, it's 0:13:02.800 --> 0:13:06.679 very hard to fix even if you have business performance. 0:13:07.000 --> 0:13:09.280 But if the world around you, because of your business 0:13:09.280 --> 0:13:12.720 performance is not doing well, that's a social contract that 0:13:12.800 --> 0:13:15.120 you cannot be put back together. So I would say 0:13:15.840 --> 0:13:18.360 that's the advice I would give any CEO is to ask, 0:13:18.480 --> 0:13:20.520 and you know, it's something that it's also got to 0:13:20.559 --> 0:13:23.120 be managed every day. It's not something you take for granted. 0:13:23.880 --> 0:13:29.079 Now you're now on your third administration US presidential administration 0:13:29.120 --> 0:13:32.040 as CEO of Microsoft. If there was one thing you 0:13:32.080 --> 0:13:35.079 want this administration to do that would make a difference 0:13:35.080 --> 0:13:40.120 for Microsoft, what would it be? I think, for quite frankly, 0:13:40.160 --> 0:13:42.880 for this administration and the last administration. Right now, the 0:13:42.960 --> 0:13:47.720 most important thing is how do we get past this 0:13:47.800 --> 0:13:50.680 pandemic because even as we speak, if you think about 0:13:50.760 --> 0:13:53.240 some of the big challenges we have around even the 0:13:53.320 --> 0:13:57.920 core logistics of delivering the vaccines, the vaccine supply chain. 0:13:58.440 --> 0:14:01.000 So I feel the price of its sector needs to 0:14:01.000 --> 0:14:03.360 do its job and do its super well. We have 0:14:03.480 --> 0:14:07.280 many capabilities, but even the government needs to do its job. 0:14:07.520 --> 0:14:10.400 And it's really I think, if anything, we've all come 0:14:10.440 --> 0:14:14.920 to recognize the strength in our institutions in the private 0:14:14.920 --> 0:14:18.240 sector and in the public sector, and how they all 0:14:18.400 --> 0:14:21.760 both need to be coordinated and stitched together. And quite frankly, 0:14:21.840 --> 0:14:26.760 governments are the most capable coordinating agencies we have. Uh, 0:14:26.800 --> 0:14:29.760 And we just need that and more of that going forward. 0:14:30.200 --> 0:14:34.000 The power of big tech is being scrutinized by regulators 0:14:34.040 --> 0:14:37.680 around the world, lawmakers around the world, and regular people 0:14:38.240 --> 0:14:39.840 around the world. What do you think it is that 0:14:39.880 --> 0:14:43.080 the tech industry is doing wrong that makes so many 0:14:43.120 --> 0:14:46.400 people wonder? Are they too big, too powerful and abusing 0:14:46.400 --> 0:14:49.880 that power? I'll say a couple of things. Big by 0:14:49.920 --> 0:14:53.720 itself is not bad, but competition is good. Uh. And 0:14:53.800 --> 0:14:57.120 more importantly, it's not just competition, but it's that point 0:14:57.200 --> 0:14:59.760 I made earlier, which is you need to have a 0:14:59.800 --> 0:15:03.320 big in this model um that really is aligned with 0:15:03.400 --> 0:15:06.680 the world doing well. I think that's what's being litigated right, 0:15:06.680 --> 0:15:10.000 which is there are certain categories of products where the 0:15:10.080 --> 0:15:14.960 unintended consequences of the growth on that category or lack 0:15:15.000 --> 0:15:18.640 of competition in it creates issues. And so that's what 0:15:18.760 --> 0:15:20.920 I think people are all looking at and saying, hey, 0:15:20.960 --> 0:15:24.080 what's the fixed for that? But I don't think big 0:15:24.080 --> 0:15:27.480 by itself is bad or but competition is good. And 0:15:27.560 --> 0:15:30.920 every business, in particular the businesses that are large and 0:15:30.960 --> 0:15:35.240 have high scale, the unintended consequences of your scale cannot 0:15:35.280 --> 0:15:37.680 be dealt after the fact. They need to be dealt 0:15:37.840 --> 0:15:40.760 while you're scaling. So when it comes to the d 0:15:40.920 --> 0:15:44.720 platforming of President Trump, for example, should a Facebook or 0:15:44.720 --> 0:15:47.320 a Twitter or Google or YouTube or Twitch have the 0:15:47.320 --> 0:15:49.480 power to say who we can and cannot hear from 0:15:50.080 --> 0:15:53.680 and if not, who should? Yeah, I mean this is 0:15:53.720 --> 0:15:56.880 another one of those places where I think unilateral action 0:15:57.640 --> 0:16:01.560 by individual companies in democracy is like ours is just 0:16:01.760 --> 0:16:05.440 not I think long term stable, we do need to 0:16:05.520 --> 0:16:09.080 be able to have framework of laws and norms which 0:16:09.120 --> 0:16:13.440 are societal norms around even internet safety. Uh, and what 0:16:13.720 --> 0:16:17.200 is the public square that really is in alignment with 0:16:17.280 --> 0:16:20.640 a thriving democracy. So we just need to get to 0:16:20.680 --> 0:16:24.720 a stable state, uh in that because otherwise, depending on 0:16:25.160 --> 0:16:28.280 any one individual CEO in any one of these companies 0:16:28.320 --> 0:16:30.960 to make calls that are going to really help us 0:16:31.400 --> 0:16:35.000 maintain something as sacred and as important as our democracy 0:16:35.000 --> 0:16:37.240 in the long run is just no way at least I, 0:16:37.320 --> 0:16:41.080 as a citizen would advocate for now. Slack has alleged 0:16:41.080 --> 0:16:45.560 that Microsoft combining teams into offices anti competitive. Um, what's 0:16:45.560 --> 0:16:48.280 your response to that? How does the landscape change now 0:16:48.320 --> 0:16:50.680 that slack has been bought by Salesforce and as part 0:16:50.680 --> 0:16:55.600 of this bigger entity. I think both Slack and Salesforce 0:16:55.640 --> 0:16:59.400 have been successful. For example, I always point out that 0:16:59.600 --> 0:17:02.000 when we think about what they were able to do, 0:17:02.080 --> 0:17:05.040 I always ask the question would slack away even existed 0:17:05.440 --> 0:17:07.880 if it was not for the free access they had 0:17:07.920 --> 0:17:10.359 on top of say, the Windows platform. They didn't have 0:17:10.400 --> 0:17:12.760 to call Microsoft, they didn't have to go through any 0:17:12.760 --> 0:17:15.719 of our app stores, they didn't have need any uh 0:17:16.000 --> 0:17:18.840 you know, off our permission. Compared to any of the 0:17:18.920 --> 0:17:22.720 other platforms that they're available on, we perhaps provide the 0:17:22.800 --> 0:17:25.920 most open platform and Windows and even on Office five. 0:17:26.000 --> 0:17:28.760 You can, in fact use all of the APIs that 0:17:28.840 --> 0:17:33.159 we expose, integrate with any application, and people use it. 0:17:33.200 --> 0:17:35.320 If you look at even the usage reports, this slack 0:17:35.440 --> 0:17:38.120 usage and Microsoft three five years, it's so and same 0:17:38.160 --> 0:17:41.000 thing with Salesforce. So the fact that they're combining will 0:17:41.040 --> 0:17:43.880 compete with them, and they will also cooperate with them 0:17:43.880 --> 0:17:47.040 and provide them access to our platforms. And I think 0:17:47.040 --> 0:17:50.280 they should measure it by what type of success they've 0:17:50.320 --> 0:17:53.360 had on top of our platform. You worked at Microsoft 0:17:53.400 --> 0:17:56.280 through its own antitrust battles, You remember what that was like. 0:17:56.359 --> 0:18:00.680 It's been called the Lost Decade if you will. What 0:18:00.880 --> 0:18:03.600 cultural risks do you believe these companies face, even if 0:18:03.600 --> 0:18:06.160 they're not broken up. What's happening on the inside as 0:18:06.200 --> 0:18:09.320 these investigations play out. I don't know if there are 0:18:09.320 --> 0:18:12.680 real parallels between what happened with Microsoft and any of them, 0:18:12.720 --> 0:18:15.560 but I would say I think the core, as I 0:18:15.720 --> 0:18:18.480 always go back, is you know, if you have a 0:18:18.680 --> 0:18:22.720 business and a business model where when you are doing 0:18:22.800 --> 0:18:26.359 well around you, people are doing well, uh, and that 0:18:26.520 --> 0:18:30.440 is something that your own employees feel, then I think 0:18:30.480 --> 0:18:33.840 things will work out culturally. When that is not true, 0:18:34.160 --> 0:18:36.679 I think It's very, very hard because one of the 0:18:36.720 --> 0:18:39.000 things I feel is, as somebody said, you've got to 0:18:39.080 --> 0:18:42.000 keep it simple. What do you say, what you do, 0:18:42.040 --> 0:18:45.119 and what you think all needs to be consistent. You 0:18:45.200 --> 0:18:49.240 can't sort of have a real distance between those three things. 0:18:49.280 --> 0:18:51.480 And that's what at least would be my advice and 0:18:51.960 --> 0:19:00.720 to anybody in starting with ourselves. You're listening my conversation 0:19:00.800 --> 0:19:05.080 with such An Adela, CEO of Microsoft, Remember Microsoft trying 0:19:05.080 --> 0:19:08.600 to buy TikTok. Nidela tells us why, and we talk 0:19:08.640 --> 0:19:11.879 about Microsoft's future in self driving cars and what the 0:19:11.960 --> 0:19:16.040 CEO's next seven years will hold. I'm Emily Chang, this 0:19:16.119 --> 0:19:18.520 is Bloomberg Studio. At one point out stay with us. 0:19:34.280 --> 0:19:37.760 What are your biggest concerns about a rising tech industry 0:19:38.160 --> 0:19:42.000 in China. I think that first of all, there is 0:19:42.040 --> 0:19:47.240 no God given right for the say US tech companies 0:19:47.240 --> 0:19:50.720 to take for granted that they cannot be other tech 0:19:51.000 --> 0:19:55.399 powers and text fears. So, if anything, rising competition in 0:19:55.440 --> 0:19:58.399 the world, whether it's from Europe, whether it's from China 0:19:58.520 --> 0:20:00.399 or the rest of Asia, is some thing that I 0:20:00.440 --> 0:20:02.600 think all of us, even quote and quote in the 0:20:02.600 --> 0:20:04.800 West Coast of the United States, need to be more 0:20:04.920 --> 0:20:08.000 grounded in because sometimes I think we celebrate our own 0:20:08.720 --> 0:20:12.479 advances far too much, and we should be more looking 0:20:12.480 --> 0:20:14.920 to saying what's happening in the world and how relevant 0:20:15.000 --> 0:20:18.200 is our technology in the world. So from that perspective, 0:20:18.320 --> 0:20:21.200 I'm a more big believer that the world does better 0:20:21.280 --> 0:20:24.240 when there is real competition across the globe and there 0:20:24.280 --> 0:20:28.200 is more technology that then is diffused throughout that said, 0:20:28.280 --> 0:20:32.359 national security concerns are real concerns, uh, and that's for 0:20:32.520 --> 0:20:36.280 nation states to really, you know, legislate on. But I 0:20:36.320 --> 0:20:40.040 think for private companies like ours, we should be thinking 0:20:40.040 --> 0:20:43.080 about how how good is our technology, how useful is 0:20:43.080 --> 0:20:47.040 our technology around the world, and welcome competition wherever it's 0:20:47.080 --> 0:20:50.680 coming from. Microsoft tried to buy TikTok and it didn't happen. 0:20:51.040 --> 0:20:55.080 Why did you want to buy TikTok? You know, it's 0:20:55.680 --> 0:20:58.080 it's it's it's I think TikTok has achieved a lot 0:20:58.119 --> 0:21:00.520 of success in being able to take take a new 0:21:00.600 --> 0:21:04.800 media format like short form video and create a very 0:21:04.840 --> 0:21:07.800 interesting property. Here. We had a very crisp vision or 0:21:07.840 --> 0:21:10.200 for what we would want to do with it, uh, 0:21:10.240 --> 0:21:13.040 and including for example, addressing some of the very real 0:21:13.080 --> 0:21:16.520 concerns around national security, But that was the last summer 0:21:16.520 --> 0:21:19.280 and we moved on. Would you be interested in other 0:21:19.400 --> 0:21:23.919 social media properties today have emily, whether it's Minecraft or 0:21:24.119 --> 0:21:27.800 Xbox Live or LinkedIn or even get up because it 0:21:27.960 --> 0:21:29.760 is you know, one of the things perhaps that's not 0:21:30.480 --> 0:21:32.600 as well understood in the world is we do have 0:21:32.680 --> 0:21:37.000 some very high scale, proper communities and properties like that 0:21:37.000 --> 0:21:39.639 that we are engaged in making sure. For example, what 0:21:39.720 --> 0:21:42.439 does internet safety look like, how does the quality of 0:21:42.480 --> 0:21:46.720 the dialogue on the LinkedIn platform, what's moderation on Xbox 0:21:46.760 --> 0:21:50.240 Live look like? How can we even think about GitHub 0:21:51.119 --> 0:21:54.600 and making sure that that community is thriving. So to me, 0:21:55.080 --> 0:21:58.640 I'm very very focused on the properties we have, scaling 0:21:58.680 --> 0:22:03.320 them and scaling them with these unintended consequences, in particular 0:22:03.359 --> 0:22:07.399 around internet safety. Microsoft is now teaming up with GM 0:22:07.560 --> 0:22:14.240 and Cruise to commercialize self driving cars. You know, talk 0:22:14.320 --> 0:22:16.120 to us a little bit more about what we'll see 0:22:16.160 --> 0:22:19.280 here in terms of Microsoft's mobility play. It's actually an 0:22:19.280 --> 0:22:23.520 interesting combination or GM that is an incumbent and Cruise 0:22:24.240 --> 0:22:27.720 that is a new entrant, both relying and depending on 0:22:27.800 --> 0:22:32.720 Microsoft cloud computing technology to build their own computing platforms, 0:22:32.760 --> 0:22:35.760 and that's what we want to replicate quite frankly broadly 0:22:35.760 --> 0:22:38.800 in the auto industry as well as in other industries, 0:22:38.840 --> 0:22:41.919 because we think that the model that at least I 0:22:42.080 --> 0:22:45.480 have is that this is not about one wordically integrated 0:22:45.560 --> 0:22:49.680 company called Microsoft. It's about digital technology being much more 0:22:49.800 --> 0:22:54.080 evenly spread across every tech industry. I mean, every industry 0:22:54.119 --> 0:22:57.440 becoming more like a digital tech industry. And that's what 0:22:57.520 --> 0:23:00.720 we are intend to do. Even with these partners, we're 0:23:00.720 --> 0:23:04.960 seeing a huge pushback against the establishment and centralized power. 0:23:05.160 --> 0:23:08.159 Was it whether it is the capital riot or individual 0:23:08.280 --> 0:23:11.359 investors driving up the price of game stoff, or the 0:23:11.480 --> 0:23:14.439 unionization of tech employees. Do you see it as a 0:23:14.480 --> 0:23:19.280 fundamental shift in power from institutions to individuals? And how 0:23:19.320 --> 0:23:23.320 will these trends inform your next seven years as the 0:23:23.400 --> 0:23:26.560 CEO of Microsoft. It's a great it's a great question, Emily, 0:23:26.600 --> 0:23:30.040 And you know, you know, sort of in some sense, 0:23:30.480 --> 0:23:34.280 I'm still learning what this shift looks like. But I 0:23:34.280 --> 0:23:40.480 would say the core principle of institutions and institutional strength 0:23:40.680 --> 0:23:44.920 that fundamentally distributes power is a good thing. It's that's 0:23:44.960 --> 0:23:48.120 kind of what democracies were all about. I mean, Fundamentally, 0:23:48.560 --> 0:23:54.800 democracies were about institutions that actually distributed power. So any 0:23:54.840 --> 0:23:59.480 institution that centralizes power will have more challenges in the 0:23:59.520 --> 0:24:03.040