Introduction:
Satya Nadella begins his address by emphasizing the significant contributions of 400,000 partner organizations in leveraging technology to impact businesses, communities, and individuals positively. He underscores the urgent need to move beyond digital transformation and embrace the “digital imperative” to thrive in today’s landscape.

Digital Imperative 1: Digital Technology as a Deflationary Force:
Nadella highlights digital technology’s role as a deflationary force in an inflationary economy. He cites an example of a CPG manufacturer using Microsoft technology to increase throughput and avoid raising prices, addressing food insecurity in Latin America.

Digital Imperative 2: Sustainability and Energy Efficiency:
Nadella mentions Coca-Cola’s utilization of Microsoft technology to reduce energy consumption, addressing the global energy crisis.

Digital Imperative 3: Amplifying Human Potential:
Nadella emphasizes that doing more with less is not about working harder but about using technology to enhance productivity and resilience across organizations.

Digital Imperative 4: Microsoft Cloud as the Enabler:
He underscores the uniqueness of Microsoft Cloud’s breadth and depth, offering best-in-class products and integrated solutions across the entire tech stack.

Digital Imperative 5: Creating New Opportunities for Partners:
Nadella concludes by highlighting the creation of new opportunities for partners to help their customers overcome challenges and emerge stronger.

Cloud Migration Trends and Benefits:
Businesses are rapidly migrating to cloud-native platforms, with 95% of new digital workloads expected to be deployed on the cloud by 2025. The cloud enables organizations to scale their IT investments with demand, reduce costs, and improve operational efficiency. Microsoft Azure offers exceptional value at every stage of cloud migration, with significant cost savings compared to competitors.

Sustainability and Data Residency:
Sustainability is a key focus for Microsoft, with efforts to reduce waste and reuse hardware in data centers. Over 90% of cloud computing hardware is targeted for reuse by 2025, giving servers a second life and reducing environmental impact. Microsoft’s global data center expansion plans include 10 new regions across four continents, ensuring faster access and addressing data residency needs.

Microsoft Cloud for Sovereignty:
Microsoft Cloud for Sovereignty provides policies, controls, and technologies to meet government-specific data sovereignty, security, and privacy requirements. This solution builds on the advantages of the public cloud, such as improved resiliency, agility, cost, and scale economics.

Azure Confidential Computing:
Azure Confidential Computing enables customers to bring sensitive workloads to the cloud by encrypting data while in use without changing applications. New capabilities, including confidential virtual machines and Azure Confidential Ledger, enhance data protection throughout the lifecycle.

Azure Arc and Multi-Cloud Solutions:
Azure Arc extends Azure’s power to on-premises, edge, and multi-cloud environments, allowing developers to build applications with Azure services that can run anywhere. Azure for Operators brings computing to the 5G edge, facilitating the delivery of next-generation private wireless solutions. Microsoft’s partnership with IntelSat connects its satellite network to the cloud, enabling private LTE and 5G networks in remote areas.

Azure Orbital and Space Innovations:
Azure Orbital unlocks new scenarios such as earth observation for precision farming, global communications, and real-time satellite command. The Azure Space Partner Community supports partners in scaling their space solutions on Azure, with examples like NOAA using Azure Orbital to extend satellite mission life and reduce costs.

Success Stories and Customer Adoption:
Procter & Gamble has chosen Azure to digitize its manufacturing sites, aiming to enhance productivity and sustainability. Azure’s capabilities are used to build an IoT platform that analyzes data from production lines, optimizing operations and empowering employees.

Community Empowerment and App Innovation:
Microsoft is committed to empowering pro and citizen developers through its approach to digital and app innovation.

Overview:
Satya Nadella highlights the growing demand for developers across various industries, emphasizing the opportunities for fusion teams of professional and citizen developers equipped with best-in-class tooling.

GitHub: Unparalleled Developer Experience:
GitHub is central to innovation, catering to both digital natives and established enterprises. Companies like Mercedes-Benz use GitHub as their core development platform, engaging over 10% of their workforce in building, shipping, and maintaining software. GitHub’s cloud-first approach offers an unparalleled developer experience and cost savings, utilized by 90% of the Fortune 100 companies.

Azure PaaS Services: Building Cloud-Native Applications:
Azure Container Apps simplifies the development and deployment of modern applications at scale, enabling organizations to build resilient cloud-native solutions. Companies like H&M have successfully modernized over 750 applications using Azure Container Apps.

Azure Spring Apps Enterprise: Java Modernization:
Azure Spring Apps Enterprise, developed in partnership with VMware, empowers organizations to modernize Java application portfolios, such as FedEx, which relies on it for large-scale Java operations.

Power Platform: Driving Digital Capability Building:
Power Platform, a leading business process automation and productivity suite, empowers domain experts with low-code/no-code tools and virtual agents. With over 20 million monthly active users, Power Platform reduces complexity and cost, enabling customers to save up to 80% compared to competitors.

Fusion Teams: Collaborating with Power Platform and GitHub:
Fusion teams, combining pro and citizen developers, can leverage Power Platform to contribute to GitHub repos and extend their apps. This collaborative approach accelerates digital capability building across organizational functions, with a growing number of companies establishing centers of excellence centered around Power Platform.

Empowerment of Employees through Power Platform Training:
Various industry-leading companies, such as ABN, Bevar, H&M, Lumen Technologies, PG&E, RoboBank, Toyota, Vodafone, ZF Group, and Zurich Insurance, have collaborated with Microsoft to establish Centers of Excellence for employee training in utilizing the Power Platform.

PG&E’s Success in Streamlining Workflows:
In partnership with Cognizant, PG&E effectively launched the Power Platform across nine business units with the aim of eliminating manual processes from employee workflows. This collaboration resulted in significant time savings, with an estimated 75,000 work hours already saved and an additional 645,000 hours projected.

Globo’s Digital Transformation and Power Platform Adoption:
Globo, the largest media and TV company in Brazil, has partnered with Baymetrics, Clumulus, and Pronex to establish its Power Platform Center of Excellence. Globo faced challenges in empowering its large workforce of around 18,000 employees after merging five companies during the pandemic. By implementing a Center of Excellence, Globo aims to enable citizen developers to create solutions using Power Apps, Power Automate, Power Virtual Agents, Power Pages, and Power BI. Specific applications developed on the Power Platform have streamlined tasks, such as set allocation for directors and program grading simulations.

Rakuten’s Experience with Power Platform:
Rakuten’s Fusion teams have successfully leveraged the Power Platform to empower business areas and deliver day-to-day solutions. The platform’s collaborative community has been instrumental in driving innovation and success. Power Platform has allowed teams to achieve more with fewer resources.

Data and AI:
Satya Nadella emphasized the importance of data and AI in the current era, stating that developers now write only part of the core business logic and the rest is being written by software and AI. By 2025, 10% of all data will be produced by generative AI models. Analytics is becoming a critical part of the product experience, with businesses leveraging intelligence to translate it into predictions, insights, actions, and automation.

Microsoft’s Intelligent Data Platform:
Microsoft stands out with its complete data fabric, encompassing operational stores, analytics engine, and data governance through its Intelligent Data Platform. The platform aims to reduce the time spent integrating and managing data, enabling organizations to focus on creating value. Compared to other cloud analytics vendors, Microsoft’s Intelligent Data Platform offers 4.8x faster analytics and up to 59% lower costs. 70% of the Fortune 1000 companies use at least two of Microsoft’s data solutions, and businesses like AT&T, KPMG, and Manulife have achieved data unification and cost reduction with Microsoft’s tools. Walgreens, for instance, achieved a threefold performance improvement at one-third the cost by migrating its analytic needs to Microsoft’s data platform.

AI as Platforms:
A paradigm shift is occurring as the world’s large AI models become powerful platforms themselves. Microsoft has built the strongest AI supercomputer in the cloud, which has been used to train the largest, most advanced AI models. The focus is on applying these models to solve some of the most pressing challenges faced by society today.

Orsted’s Use Case:
Orsted, a company that produces a quarter of the world’s wind energy, collaborated with Microsoft and Cognite to utilize Microsoft’s tools. They transformed data from offshore wind turbines into insights for predictive maintenance. Drones were flown inside turbine structures to collect imagery and sensory data, which was analyzed by computer vision models to detect corrosion and cracks. Data scientists combined data from IoT sensors, drone telemetry, and 3D models to create business value. Technicians could then stay outside the confined spaces and let drones perform inspections, leading to faster inspections, increased energy production, cost savings, and a safer environment.

Key Points:
Companies must adapt to the new reality of hybrid work, where employees demand more flexibility and well-being. Microsoft 365 offers an integrated suite of collaboration tools that helps organizations manage hybrid work environments. Teams, the centerpiece of Microsoft 365, offers functionalities like screen share annotations and Excel Live for seamless collaboration and editing. Microsoft Viva enhances the employee experience with features like digital engagement, knowledge sharing, learning, and goal setting. Viva Goals ensures alignment by bringing business goals into the flow of everyday work. Viva Engage fosters community building, engagement with leadership, and knowledge sharing. Weaver expands to include sales-specific modules, streamlining CRM systems. Teams Rooms bridge the gap between remote and in-person collaboration with innovations like Front Row and enhanced video streams for individual feeds. Windows 365 provides organizations with flexible work options and empowers employees to be more productive and connected regardless of their location.

Conclusion:
Microsoft’s focus on hybrid work solutions, such as Microsoft 365, Teams, Viva, and Windows 365, empowers organizations to navigate the changing landscape of work and collaboration. By integrating diverse tools into a cohesive experience, Microsoft helps businesses create a seamless and productive hybrid work environment that caters to the needs of employees and drives organizational success.

Windows 365 for US Government and Contractors:
Microsoft is extending the availability of Windows 365 to the US government and government contractors, expanding its reach and empowering secure remote work environments.

Mesh for Teams:
Nadella highlights the significance of Mesh for Teams, which enables immersive collaboration across various devices, including VR headsets, HoloLens, tablets, phones, and PCs, bridging the gap between the digital and physical worlds.

Teams as a Central Hub for Business Processes:
Nadella emphasizes the need for businesses to centralize their operations within Teams, enhancing productivity and efficiency by integrating critical business functions and applications directly into the workflow.

Shift from Traditional ERP, CRM, and SCM to Data Collaboration and AI:
Traditional business management systems are transitioning towards data collaboration and AI-driven approaches, with Teams, Power Platform, and Dataverse serving as key enablers for enterprise business applications.

Third-party Integrations and Success Stories:
Leading ISVs like Adobe, Atlassian, Figma, Salesforce, SAP, ServiceNow, and Workday have integrated with Teams, providing deep functionality and enabling customers to seamlessly incorporate business processes into their workflow. Maersk’s use of ServiceNow on Teams exemplifies the streamlining of daily work and improved employee experiences within Teams.

Dynamics 365 and the Digital Contact Center Platform:
Dynamics 365 is designed for the modern business landscape, connecting data processing teams and ushering in hyper-connected business operations. The Microsoft Digital Contact Center platform combines Dynamics 365, Azure Communication Services, Teams, Power Platform, and Nuance to deliver seamless customer engagement across channels.

Benefits of the Digital Contact Center Platform:
Eliminates siloed data systems, reducing costs and providing instant visibility into trends across service channels. Enhances customer experience through automatic authentication, account health insights, topic-specific assistance, and collaboration with subject matter experts. Offers flexibility and choice for customers with integrations from SIs and ISVs like Genesis and Nice.

Collaborative Line-of-Business Applications:
Teams serves as a central platform for collaborative line-of-business applications, bridging the gap between knowledge workers and frontline workers, driving automation, and improving productivity. Over 80,000 such apps have been created across various industries, including United Airlines’ scheduling solution built within Teams.

United Airlines’ UChat Success Story:
United Airlines’ custom scheduling solution, UChat, built on Teams, enables flight attendants to easily communicate, trade shifts, and manage their schedules. UChat simplifies trip trades, improves collaboration, and streamlines operations, resulting in cost and time savings for United.

Conclusion:
Nadella reiterates the importance of collaboration and connectivity, emphasizing how Teams empowers employees, enhances customer service, and drives innovation across organizations.

Security as a Top Priority:
Cyber attacks are increasing in volume and sophistication, with cyber crime expected to cost $10.5 trillion annually by 2025. Microsoft provides comprehensive security solutions, combining technology, threat intelligence, and human expertise. Microsoft Entra, Purview, Priva, and Defender enhance identity and access, compliance, data governance, and security. Multi-cloud protection for top three platforms and new IoT security features are offered. Customers save over 60% compared to multi-vendor solutions.

Microsoft Cloud for Partner Success:
Microsoft Cloud enables partners to capitalize on best-of-category products and suite solutions across the tech stack. Partners gain specializations and deep technical training in various solution areas. Marketplace transaction fee reduced from 20% to 3% to drive partner profitability. Free access to best-in-class developer tooling for ISVs to build and publish apps faster.

Investing in Partners’ Growth:
Partners who leverage Microsoft’s offerings grow faster and generate higher margins. For every dollar in Microsoft revenue, partners using Microsoft Cloud solutions generate $10 more. Success enables partners to drive global success and address challenges.

Real-World Impact:
International Committee of the Red Cross reunites families amidst humanitarian crises using Microsoft technology. Australian Partner of the Year used Power Platform and Dynamics 365 to provide better services to the homeless. By Name List centralizes data, enabling root cause analysis and targeted services. New South Wales achieved a 25% reduction in rough sleepers in Sydney and aims for a 50% reduction statewide by 2025.