[MUSIC PLAYING] Now introducing your keynote MCs this morning Quest Platform Management Senior Director of Product Marketing, Mr. Steven Phillips and Quest Strategic Advisor and former CIO, Jay Gardner.
Good morning, everybody. How's everybody feeling out there? Hey, I'm what are your hosts this morning, and proud to be here and welcome you to TEC.
I'm your other host and we're pleased to have you at our reboot of TEC.
So it's been seven years since the last TEC. The conference started in 2001. Gil Kirkpatrick, has he made it in? I don't think-- maybe not yet. Gil will be here. He's actually speaking in the AD track. He was one of the founders of The Experts Conference. It was really built around, honestly, how do you handle this Active Directory environment back in 2001.
And what's amazing is after Quest was acquired by Dell, TEC went away, and there wasn't a year that we were not at Ignite. Microsoft Ignite-- everybody familiar with that conference-- where people said, when are you bringing TEC back? So think about that. Even though the conference went on hiatus, there was still a demand for it. And that's what we're here today for.
And if you think about that video of what you just saw, there is never a better time than the present to bring everybody together to learn from subject matter experts. And we have a great agenda. There is no vendor pitches, no product pitches, no shopper stalkers. This isn't a furniture sale. We're not going to try to make you buy stuff. What we want you to do is learn from each other and learn from the speakers. And that's really what this conference is all about.
And Steven, do you know that the first TEC ever was actually held here in Charleston?
Are you sure, Jay?
Yes. In fact, this was the southernmost city of the British colonies, also one of the most vulnerable for entry and intrusion. The colonists worked together to come up with best practices to share in how to build up their defenses. In fact, they built a wall to keep out unwanted outsiders and fortified their shores to constantly monitor threats.
So now I'm drawing the parallels. If you think about the experts of people coming together to figure out how to do something, how to stop something from happening, that's really what that was all about, and I totally get that.
We're able to bring TEC back, and we're really pleased to announce the sponsorship of TEC by Microsoft. In fact, they'll be sponsoring the evening reception out here in the Grand Hall. We hope you'll all join us. We're pleased to have the support of Microsoft for this event.
Many of you are going through mergers and acquisitions, as an example. Much of that integration work falls-- that burden falls on your shoulders.
So let's think about the M&As. Raise your hands if you're in IT, and you're brought in on a merger and acquisition before it happens. Right. Most of you guys just get told, this is happening. This is what we have to do. And if you think about the workload that's there, we know that that is challenging. How do you handle these environments? How do you handle the integration of all the systems? It definitely can be a challenge.
And on top of this, you're tasked with moving to Office 365 and deploying new collaboration tools like Microsoft Teams. And we know that your workload never gets lighter, so we're here this week to address many of those issues. To set the stage is our first keynote speaker, partner and General Manager of Industry Experiences in the Cloud and Artificial Intelligence for Microsoft, Mr. Paul Maher. Named a cloud influencer by CIO Review, Paul helps enterprises move to the cloud, and today he's going to discuss some of the latest trends which have the potential to transform your business and the key technology use cases driving those trends, and also how Microsoft's cloud strategy makes all this possible. Paul.
Good morning, everyone. I'm just getting the fundamentals of how to move the slides forwards. So I appreciate the introduction and the music. Quite an illustrious opening. But who's happy to be here?
Come on. Is it-- I think I heard seven years. So it's back. So my name is Paul Maher. I'm a general manager at Microsoft, and let's just kind of drill into that a little bit. And in this session here, as you can see, we'll be talking about transforming your business with the Microsoft cloud strategies.
So let's begin a little bit about myself. So I lead a team in Microsoft digital engineering, so this thing you call a cloud. I actually worked within the engineering team. I lead a team called Industry Experiences. And very simply, myself and my team work with partners and customers all around the world, helping them move to the cloud and moving to our commercial marketplace.
I'm dating myself a little bit at the end, but I've been involved in cloud since 2005-- yeah, 2005. And for those of you who've been tracking Microsoft in our cloud, it was codenamed Red Dog. And so back then, in 2005, I got the opportunity to talk to analysts and talk about this thing called the cloud and how it could be the future. Anyway, fast forward to today, I think that the world is a very different place and that perspectives of cloud are very, very different.
And I also get to work with some of the largest companies around the world, helping them move to the Microsoft digital cloud. So you could say I was born in the cloud and I'm absolutely all in on the cloud.
So here's my goals for today, and hopefully I achieve them. So we'll start with digital transformation and disruption, and I'll throw a few slides up there in terms of what are the analysts saying, what's the industry saying, just to set the scene around this thing called digital transformation. We'll double click a little bit and look at, for those industries, what are some of the trends that we're seeing? So what's driving that momentum around disruption and transformation and that movement to the cloud?
I'll talk at a very high level about some of the key pillars around transformation, so cloud, data, and artificial intelligence. And I'll finish with some thoughts on go-to actions, some of our learning collateral, and so on that you can carry on hopefully the journey after this session.
So for the next few slides, let's reflect on, what's the industry saying? What are the analysts saying around this thing called digital transformation and digital disruption? So let's take a moment. So what are the driving forces behind digital transformation?
Can I hear a wahoo for data, data, and more data? So look, data will grow to 44 zettabytes in 2020. Quickly, open up your laptops. Google search zettabytes. it means lots and lots of zeros. And then by 2025, 163 zettabytes. Who's even heard of a zettabyte? So we have this data explosion.
But of course, with all this data, we need to drive meaningful insights. So that takes us to analytics. So analytics is predicted to be a $200 billion market by 2020. And of course, cloud-- so if we think about cloud spend, by 2020-- look at that number, $1 trillion in investment by our own IT spend moving to the cloud. So these are some pretty phenomenal numbers.
Let's continue. Again, what are we hearing? So the only thing harder than transformation is failing to transform. So on the left-hand side, you can see the transformation opportunity. So digital transformation, the projections are it's a $100 trillion opportunity.
But look on the other side, super interesting. What if you fail to transform? So read that. 52% of companies in the Fortune 500 companies since 2000 are no more. These companies are no longer in business. I have lots of conversations with CIOs and CTOs and all C-level executives around digital transformation. Before it was about having a digital transformation strategy. Today it's about playing catch up. So this is the consequence of not thinking about that, not having a strategy, not transforming.
Let's keep moving. For 76% of CEOs, digital transformation is the number one priority. So you see, we're setting the scene about this. This what was a buzzword is now a reality called digital transformation disruption.
Show of hands-- we won't do yoga, but we'll get the energy in the room. How many have heard of this thing called the Fourth Industrial Revolution or industry 4.0? Show of hands. Stretch. Pretty much, everyone.
So let's look at it. If we track history-- it's always good to track history. So back in the 1780s we had steam, and of course, the innovation around electricity in the 1870s. Then think about the '60s, the '70s, we had computers, we had PCs, we had electronics, and so on and so forth. And then 2015 and beyond, that's where we are today, this thing called digital transformation, the blurring of the lines between digital and physical. And it's a pretty exciting time that we live in.
Now, this is kind of fun. So now let's track the era of computing. So let's go back to the '70s to the mainframe. Hey, how many people have heard that mainframes are never going to be around? Hey, they'll be around for a long time to come. So back in the '70s, we had this notion of one computer and many users.
The personal computer era-- here's my little spot challenge to anyone. Of course, Microsoft played a big part in the personal computing era. So if anyone wants to hang out later on, I'll buy them a free coffee if they can remember Microsoft's tagline about personal computers. You don't have to tell me now, but we'll chat later.
So in the personal computer era in the '80s, it was all about one computer, one user. Fast forward to the 2000, this proliferation of devices, bring your own device, mobility. The 2010s, the cloud era, so this notion of many computers and many users. And then 2020 and beyond, this is where we're heading to, this proliferation of devices, this ubiquitous era, many users, many computers. Anytime, all time. So our world has changed.
So this was a picture I took a couple of weeks ago on a family outing in little Redmond where Microsoft is, just outside of Seattle. Shout out to the chalking dad. So as you can see-- hopefully everyone can see, this as our illustrious founder, Bill Gates. And I have two boys, 11 and 14, so their first question was, first of all, who is that, Daddy? Followed by, what's in his hand, Daddy? So I had to explain this thing called a floppy disk.
Interesting start-- by 2020, there will be more Millennials than any other generation. That's quite staggering. My key point here, though-- of course, I get super excited, and hopefully you all do in the room, around talking about digital transformation and disruption, looking ahead to the future, geeking out on technology. But the key point here is, as we look to the future, it's super important to look to the past.
So what are the learnings we can take the past as we look to the future? OK. So let's ground ourselves in the Microsoft Cloud. That's where I live, in Microsoft digital engineering. So at the core of the cloud, of course, is Microsoft Azure, in a sense, the clicker. And then we also have Dynamics 365, so things like CRM and ERP. And it's super exciting to see this week, over the next couple of days, all the sessions around Office and Active Directory and so on and so forth. So we have Office 365, as you're astutely aware.
But also Microsoft Gaming. So you've probably heard of Xbox and Xbox Live Services and Titanfall, and so on and so forth. But also think about Microsoft Azure as a platform for gaming development. So we've landed what we think about the Microsoft Azure cloud.
I'll make the assertion at the sort of the macro level, when we talk about this thing called digital transformation, cloud, data, and AI are sort of pivotal to transformation. And I'm keeping it at a high level, and we'll talk about that in the session as we move along.
Also when we think about the priority industries, again, looking to our knowledge and as we talk about-- look to the analysts and we think about trends, we think about the addressable market for digital transformation, we look at just cloud spend in general. We think about eight core priority industries that we're looking at currently that we think are prime, and we're putting extra energy and doubling down in and around transformation just because we think they're on the right path in terms of that place today. That's not that all industries aren't important, but this is what we're seeing in terms of sort of trends around digital transformation. And my team's specifically focused on five of those industries. So that's banking, insurance, retail, manufacturing, and health care.
Let's pause for a moment here. So now let's double click on those industries when we think, what are the needs around digital transformation? It's a little bit of an eye job, but this gives you a feel for some of the trends that are driving that need for a transformation strategy to transform. I'm sure many of them are familiar to you. So look at things like, of course, traditional things like backup and archive, data retention.
But think about some of the new cast of characters that are in there as well-- IoT, Blockchain. Who's heard of Blockchain? Really? Blockchain is one of the new kids. I would encourage you to take a look. It's one of the transformative things in the industry today.
Think about connected experiences-- of course, the modern data warehouse. And I'll talk a little bit later on about the data in the digital platform. Of course, things like artificial intelligence and machine learning. And so as you think about everyone dealing with data, driving meaningful insights, using things like artificial intelligence and machine learning for things like anomaly detection, could be really key interesting technologies to take a look at.
So we talked about at the high level, we think about cloud, data, and AI driving transformation. So we'll talk a little bit about cloud driving transformation. And so when we think about the Microsoft Azure cloud, we think about four pillars. We think about productive cloud, we think about the hybrid cloud, we think about the intelligent cloud, and we think about the trusted cloud. So if we break that down, when we think about the productive cloud, we think it's a cloud for everyone-- all developers, all languages. We have over 100 services who go develop and drive innovation.
When we think about the hybrid cloud, we think about public, we think about private, we think about on premise, with things like Agile Stack to give you all the capabilities that you need. We think about the intelligent cloud. So think about building intelligent applications, or even things like taking data insights and driving meaningful insights from that, using things like artificial intelligence and machine learning. Of course, trusted-- security and compliance are point of mind for everyone. So when we think about trust the cloud you can think about the thousands of startups and governments and Fortune 500s is already using the Microsoft Azure cloud today.
So when we think, any good cloud provider, and what are the key tenants that are required? We need to have a cloud that is global. We need to have a cloud that's secure. And we need to have a cloud that's compliant. So when we think about Microsoft Azure from a global perspective, we have the largest footprint of any cloud provider with 54 regions worldwide.
Now when we think about the secure cloud, you'll see here, we spend over $1 billion per year on security. We have over the 3,500 staff dedicated to security. And per day, we review $6.5 trillion-- $6.5 trillion-- global signals around threat modeling and threat detection. And finally compliance-- of course, super important. We have over 90 services around compliance. And of course, in the heavily regulated industries this is critical.
So putting it all together, Microsoft Azure cloud is global, it's secure, it's compliant. These are just table stakes to be able to innovate on the cloud. So we've talked about cloud enabling transformation. Now let's talk about data enable and transformation.
So as this slide builds out, this just gives you a feel for the landscape of Microsoft Azure and our data capabilities, whether that be SQL databases, NoSQL databases, whether that be structured, whether that be unstructured data. It's a bit of an eye chart, but it gives you a feel for the depth and breadth of capabilities around data we have on the platform.
But of course, let's not forget the big data. So we think about things like Databricks. We think about things like Hadoop. We think about things like analytics. We think about things like machine learning. So we have a platform to deal and help you innovate for all your data needs.
Who's heard of IoT? OK. So IoT is probably one of the key drivers or culprits of the data explosion. So if you think about IoT today and that data explosion, of course, we talk about cloud. On the Microsoft Azure cloud, we have IoT services to be able to harness signals from devices and sensors, to be able to drive meaningful insights. So then we have artificial intelligence that's able to take that data that we've consumed through those IoT services and drive artificial intelligence and machine learning on top of that data. And of course, with things like Intelligent Edge, we're able to drive those capabilities not only in the cloud, but through the device itself.
So let's carry on. So what are the analysts saying around IoT? So think about all these devices across industries. Let's take a moment to pause. So the IoT opportunity, let's pick a few stats.
80% of companies that increase their revenue as a result of IoT implementation. There will be 80 billion connected things by 2025, generating-- here we go, the zettabyte number again-- 180 zettabytes of data. So you can see the IoT explosion is huge.
And by the way, IoT has been around for a long time. But the innovation is really looking at things like cloud, looking at standards, looking at the Intelligent Edge. So how do we actually start to standardize? How do you start to bring that data together? And then how do we drive meaningful insights from that in a performant way?
So the final thing we'll touch upon-- we talked about cloud enabling transformation. We talked about data. Let's talk about AI enabling transformation.
So let's start with, what are the AI drivers? So of course, cloud is at the core of this. So cloud in that pay-as-you-go model, near infinite scale is, of course, helping drive this momentum. The explosion of data, and this is obviously very pertinent to the people in the room. And we've just talked about IoT further adding to this data explosion, so data, data, and more data.
But also AI has been around for a long time. You can go pick up the university textbooks from the '60s that talk about artificial intelligence and algorithms. So beyond the advancements of cloud bringing down price point and driving more performance and more capabilities, advancements and algorithms are key. This is what's helping drive that new innovation.
So let's take a moment to pause on the AI momentum. This is really, really interesting. So when we talk about the Microsoft Azure cloud, we group artificial intelligence together, talking in the terminology called cognitive services, which covers vision, speech, and language.
So let's look at this. So we walk across from a vision perspective. 2016 we have object recognition. That is at human parity. So today we have over a million devs using and building on our cognitive services. 2017, speech recognition at human parity. So we 300,000 developers creating digital agents using the Azure [INAUDIBLE] service.
March 2018, machine translation at human parity. So now, within PowerPoint translator we have support for over 60 languages. January 2018, machine reading comprehension at human parity. So we are now seeing over 35 trillion-- trillion-- docs being processed by machine learning. And of course, we continue with artificial intelligence to innovate, innovate, and innovate, so with things like machine learning, algorithms, and so on and so forth.
So what are some of the patterns for artificial intelligence? So what's happening? What are people using artificial intelligence for? So this is, again, just a very simplified view of some of the scenarios that we see coming through. But we're definitely seeing, if you think about business to business, business to consumer, business to enterprise, lots of stuff going around in terms of innovation with building our bot agents. We also have things like person, object, and activity detection. So again, this is within our cognitive services that we said-- vision, speech, and person, object, and activity detection.
So in this example, we have health and safety. Think of a factory being able to detect rogue items. But also think about your Windows machine, Windows Hello. So rather than using a password that you type in, the camera is looking and detecting at Paul saying, yes, you are authorized to use this device.
I've actually been involved in a number of projects quite recently where we're seeing innovation using object and activity detection for the short of sight. So with things like even just leveraging-- because of the quality of cameras, whether you're using, say, HoloLens to your own iPhone, using those capabilities and helping that nearsighted to be able to say, here's detection.
It was kind of fun. I got to judge in the competition quite recently with the universities, and Bose have just released some new glasses. And I was unclear. It's kind of like the Jawbone, where there's no headphones. You just put glasses on and then it transmits through your head. Well, again, that's great to be able to pair that up with object detection. Someone wears those glasses, walking around near of sight, is hearing through those glasses that's non-intrusive, not in there ears, non-intrusive because they can still hear the surroundings around them, saying they're coming to a road, they can see a car. Here's your family, and so on and so forth. So super interesting.
AI-assisted professionals-- so let's think about health care, so artificial intelligence helping things like doctors diagnose illnesses, or even surgeons as they are doing surgeries. Knowledge mining-- imagine having the capabilities that we talked about to drill through and get insights from trillions and trillions of documents and videos. And finally, of course, one of the hottest topics of the moment is autonomous systems. So think about driverless cars. So of course, artificial intelligence is playing a key part in that. So automotive is such a hot topic at the moment.
So all that remains is to say a big thank you. And as I mentioned at the beginning, here's some highlights to continue the conversation and continue the learning. So I've suggested some next steps. Go take a look, if you want to learn more about the Microsoft Azure cloud, in our commercial marketplace. Take a look at Azure.com. That's the center of the universe for all things cloud.
Next, go check out the Microsoft Learn platform, and there's tons and tons of great free content and learning pathways there. So go check it out. If you want to learn more about industry and digital transformation, go check out Microsoft.com/industry. There you'll see things like our perspective videos. You'll also see things like customer case studies, and you'll have opportunities to attend events and webcasts.
And then finally, if you want to catch up with little old me, you can contact me at Paul.Maher@Microsoft.com. I'm pretty prevalent on LinkedIn and also on Twitter, so you can see me @PaulJFMaher, and shout out for everyone to make sure they're tweeting about the conference. And all that remains is to say thank you and hand over to Steven. Thank you.
Thank you so much.
Awesome. Thank you so much, Paul. Wow. I always love having Microsoft involved at our conferences. We work very closely with Microsoft. Just understanding where they're going, that really drives what Quest does. But also I think you guys know the closer you are to Microsoft, the closer you are to knowing what's happening in your environment.