Bank of America Merrill Lynch Global Technology Conference
Who:Alysa Taylor, Corporate Vice President,
Business Apps & Industry Marketing
What:Bank of America Merrill Lynch Global
When:Tuesday, June 4, 2019, 8:00 a.m. PST
KASH RANGAN:Time goes by very quickly when you're having
fun.Today is officially my 25th
year on the sell side, so great to have you join us and kick off this
everybody, first of all.This is really
the pinnacle of the year, as far as I'm concerned, personally.To have the corporates with our investor
clients come together on the stage in this forum and get the best insights
possible is the best thing we could ask for, as an analyst.
thank you, everybody, for supporting me the last 25 years.(Laughter.)Thank you for my team.Today's a
really special day.
that quick round of excitement from my side out of the way (laughter), let's
get to our guests here, Microsoft.Real
delight to be able to be host a very special guest here, Alysa Taylor, who is
Corporate Vice President of the Business Applications and Global Industry
what we're going to do is to have Alysa talk about your job, your responsibility
scope, and then dive into some good questions that we have.And every bit along the way, I'm just going
to watch to see if you have a question or two.I'm going to look in your direction.If you don't have a question, we'll cycle through the questions that we
have for you.
thank you, Microsoft -- thank you, Jonathan, for arranging this.Really appreciate it.
Alysa, talk about your responsibilities and what is this is all about.
ALYSA TAYLOR:I can do that.Well, first of all, congratulations on 25
KASH RANGAN:Thank you, thank you.
ALYSA TAYLOR:That’s very impressive.It's a big day.So as you indicated, I am the Corporate Vice
President of the Business Applications Division at Microsoft.And what that entails is we have functional
responsibility at Microsoft, so I am responsible for, effectively, our go to
market for the product line that encompasses business applications.
have a peer on the engineering side, James Phillips.He builds the products.I get to bring them to market.We have a Global Sales leader, Hayden
Stafford.And then, we have our CFO
who's with us today, Jeff York.So,
those are the functional leaderships that make up the Business Applications
Division at Microsoft.
KASH RANGAN:Got it.And can you tell us a little bit about these applications, the breadth
and scope of the apps that you're responsible for.
ALYSA TAYLOR:Absolutely.About two and a half years ago, we announced and released Dynamics 365,
so that is our flagship product line within the portfolio.And then, we have the Power Platform which
encompasses Power BI, PowerApps as well as Microsoft Flow.So, that's our extensibility and
adaptability.So, those are the two
flagship product lines within Business Applications.
KASH RANGAN:Got it.So, I just want to start off and get out a couple of things that have
been very topical, on our clients' minds. One, I'm just curious to get Microsoft's
perspective on the trade wars that have been very rampant in terms of our
attention.How does this even pertain to
secondly, I also wanted to get the regulation thing out of the way.Yesterday, the market was hurt as a result of
regulatory fears back to the Internet sector.There's also a sense that, hey, what does it mean for software?So, just your broad thoughts, if they are
ALYSA TAYLOR:Yeah, I'm happy sort of do top of mind on
that.So on the regulation side, if you
think about one of Microsoft's core pillars is trust, and so when we think
about our customers' data and data privacy and sovereignty, that's something
that we take very seriously.We have a
number of sovereign clouds across the world.And if anyone has seen Brad Smith, who is our President and Chief Legal
Counsel, he's talking very openly about our commitment to data privacy.So, I think that's something that Microsoft
stands very firm on in terms of that value of trust.
then, on the sort of trade wars -- particularly I think China is top of mind on
that -- a small part of our business is China.We do have our multi-cloud offering in China.We actually just launched Dynamics 365 in
China in April, but that is really servicing the needs of our multinational
companies, and so making sure that we have a global offering.
KASH RANGAN:And how's that doing, the China business?
ALYSA TAYLOR:Well, we just launched, so time will
tell.But again, when we think about our
big -- Starbucks, Ford, others -- it's making sure that we have a global
presence for them.
KASH RANGAN:Got it.Wonderful, thank you so much.Let's talk about Dynamics for a second.Dynamics 365 has been growing very strongly.Help us understand what has changed versus
the past two to three years.
ALYSA TAYLOR:Yeah, it's been a very exciting evolution, I
would say.So if you kind of wind back
in time, we had a set of assets that were a collection of ERP assets that were
predominantly on-prem.And then, we had
a CRM business that we built at Microsoft.And they were actually two very disparate divisions within
Microsoft.And so, we had, effectively,
competing ERP systems and then a CRM system.
so, as we looked forward to what does the world look like in 10 years,
particularly as customers are going through the adoption of a digital platform,
having these big, monolithic, siloed applications wasn't the direction that we
needed to take for our customers.
so, we actually took on the effort of bringing those assets together,
converging them onto the Azure platform.So, we went from our on-prem and our hosted on-prem environment, rebuilt
them onto Azure, and then we broke them down into purpose built
applications.So, they're now aligned by
marketing, sales, service, finance, operations and talent.
we did that with this vision of how do we allow customers to easily adopt as
they're going through their digital transformation.That was the goal and the North Star.And then, we built underneath those applications
a unified dataset, something we call the Common Data Service, so we could not
only share data freely across those applications, but we could also ingest data
from other assets -- LinkedIn, or Office, or communication collaboration
history, as well as our partner ecosystem.
so, the core to our strategy has been how do we enable rapid, faster digital
transformation and we unlock the data that has been, historically, very trapped
in siloed applications.And so, that was
the vision for Dynamics 365.And then,
knowing that once you have all that data, you have to have an adaptability, an
extensibility model, and that was the introduction of the Power Platform.
we're relatively old in the Microsoft world but new in the sort of new
visions.So, Dynamics 365 was two years
KASH RANGAN:Wow, congratulations.When you look at het competition in terms of
feature functionality, etcetera, where are you with respect to the gap, or
maybe you've caught up?What's your
assessment of the state of the world?
ALYSA TAYLOR:I think as we've gone through this journey,
one of the things that, as I talked about, was important for us is to be able
to leverage kind of the entire Microsoft asset cloud, so being built on Azure,
being able to deeply integrate and build with Office.
so, again, when we think about our differentiation and where we think we have
made strides, it is in that enabling of that data layer; so being able to ingest
data across the applications at the data platform level, being able to extend
it, customize it, be able to ingest data from all different sources so you're
not just in a CRM set of data; and then, also having this co-build
we have our engineering teams across Microsoft 365 and Dynamics, and Azure
co-building features that are deeply integrated in a way so you can do things
like machine learning within Power BI.You have out of the box artificial intelligence within Dynamics
365.You have native communication with
so, that's very unique to us and we think that's a big differentiator when we
think about Business Applications, because the market, as you guys all know, is
highly fragmented.And so, what
customers end up with is a collection of assets.And again, their data is sort of trapped in
these different silos.And then, there's
a cost to e-tail the data out to be able to analyze it to create new
KASH RANGAN:This is a part of Microsoft business we've
not heard a lot from in the past, so I'm glad that we're having a chance to
listen to your update.This is
fascinating.You mentioned digital
transformation.I'm just curious, if you
take a step back, how do you define digital transformation, and what are your
customers telling you about what they mean when they talk about digital
ALYSA TAYLOR:It's interesting.I actually was just down in Atlanta last week,
and I did a keynote at Hitachi's customer event.And we talked about the Microsoft view on
digital transformation.And we've had
the pleasure of working with so many companies over the past couple years --
over the past decades -- as they've gone into this digital transformation,
which is a big buzz words, as we all know, in the industry.
when you look at it, there's really sort of four facets to digital
transformation.There is sort of the
what is the purpose and vision that you have as a company.You have to have that.We even talked about Dynamics 365.What's your North Star as you are going
through an evolution?We talk about the
unique potential that an organization has, so what is the sort of thing that
they are either disrupting with an industry or what's the asset that they bring
of the examples I gave was Walgreens and the fact that their unique potential
is the fact that they have a retail outlet in the U.S. within five miles of
each other.So, they have density and
like how are you building the culture of an organization.So, there's a lot of digital transformation
that isn't related to tech, right, that is setting the sort of foundation.
then, you get into capabilities and what are the capabilities for your people,
what's the capabilities of your infrastructure and your assets.
so, when we look at that component, when we look at the technical capabilities,
and what's unique to an organization, we have this theory which is called the
digital feedback loop, and it's something we talk about pretty widely.You'll hear Satya talk about it.He talked about it at Build.He'll talk about it at our upcoming
it's this notion that you can take all components of an organization -- so,
people, operations, products -- and you can digitally connect them.So, you have sort of all facets of an
organization.At the center is
data.You're able to apply intelligence
over that, and then digitally connect every aspect.
so, think about a world where you have a unique view of your customers
connected to your products connected to your backend operations with a
365-degree view that your employees have.And so, in the capabilities realm of digital transformation, that's what
we talk about as the digital feedback loop.
KASH RANGAN:Got it.Excellent.What would be your
goal or the division's goal for the next two-to-three years?How do you envision the platform playing out
in the future?
ALYSA TAYLOR:You'll see both in our upcoming -- we have
our summit that's coming up in June, and then going into the fall, we are
continuing to release new capabilities in the portfolio.And so, it is both capabilities adding in new
capabilities of the Power BI, like text recognition, cognitive services, being
able to do machine learning; and then, actually new modules.So, we released a set of new AI capabilities
customer insights we just released, which is our CPD platform product insights
we'll talk about.
there's all of these different AI out of the box capabilities that will augment
the Dynamics 365 portfolio, and then will continue to build in new capabilities,
both across the Power Platform and Dynamics.
KASH RANGAN:Great.So, all the capabilities you just mentioned, from a customer perspective,
how would they benefit, maybe a scenario where somebody could take advantage of
all these features?How would that look
ALYSA TAYLOR:Yeah.There's so many different kind of examples that you could give, but if
you go back to what I was talking about with that digital feedback loop, it's
being able to bring the technology to bear to enable that digital feedback
a great example that we give is H&M, which is a global retailer.And they actually started with -- they have a
very large ERP system that governs their entire financials.And then, they started a boutique line called
Afound, but they needed a rapid supply chain management system.They've had to modernize their operations
because, to be able to go from mass scale -- which H&M is known for -- to
be able to be in a more boutique, nimble-type scenario, they needed a different
supply chain management company.And so,
they started with Dynamics 365.
they expanded from there into being able to have better insight into their
customer.So they adopted Dynamics 365
Customer Service.Then, they wanted
their employees in store to be able to have real-time access to the inventory,
so they took all of that data and built a unique PowerApp to be able to have
their employees have that view of the backend operations and the customer
so, you see this evolution of kind of being able to start in one area, grow
over time, and use the technology to start to connect all the different
components across an organization.
the latest thing that they're doing is we have a set of mixed reality
applications that we brought into the portfolio, and they are using HoloLens
and the Dynamics 365 mixed reality applications to do a smart mirror in store.So, you can actually have a mirror that will
recommend that you must look, if you have a sweater and you wanted it to be
different -- bigger, longer, shorter.So
actually, they're piloting that in their flagship store on Fifth Avenue.
KASH RANGAN:So, what would I look like if I adopted
Shankar's hairstyle and Converse?
ALYSA TAYLOR:You'll have to ask the mirror.We'll consult.Better get to New York.
KASH RANGAN:(Laughter.)Excellent.Can't wait for that
stuff.A couple more questions on the
Dynamics, and we want to shift over to the Power Platform, which is truly
exciting, at least based on what we've uncovered so far.Sales navigator, any revenue synergies, is
that something under your purview, or are you able to talk about how that
LinkedIn product interacts with Dynamics?Are you seeing any synergies?
ALYSA TAYLOR:Absolutely.As I talked about, that Common Data Service, right, being able to ingest
data assets like LinkedIn and the professional network.We actually released about a year and a half
ago a unique offering which is called Microsoft Relationship Sales, which is
the combination of LinkedIn Sales Navigator and Dynamics 365 for Sales.And we've seen very high growth in that
because what we find is, when people are modernizing their sales environment,
they also want to be able to incorporate social selling, relationship selling;
and so, the synergy between that.And
then, we have unique integration between Sales Navigator and Dynamics 365 for
KASH RANGAN:This is not what I was planning on asking,
but you mention Sales Navigator and the way people sell is changing.There is a notion that sales automation is
very mature area in the cloud.You've
got the number one company in the space not growing that rapidly.Do you think that market still has growth
opportunities, not just Sales Navigator, but just the idea of selling, sales
automation in the cloud?What are your
thoughts on that market, if you have any?
ALYSA TAYLOR:I have tons.I hopefully should have some thoughts on this.(Laughter.)So, I think that there is the core CRM system, which are the entities
that define contacts, right?That is a
very mature market.What you see right
now coming into sales automation, and you see both Salesforce, Dynamics as well
as new, emerging SaaS players is in areas of being able to take all of that
data -- think about what kind of rich data you have in a CRM system -- and be
able to do things like predictive forecasting to be able to understand
pipelines trends and analysis, to be able to coach real-time; so being able to
bring in cognitive services. And so, if
you have an inside seller, being able to coach based on the call sentiment
is all things that are new that are coming in that are augmenting the core
SFA.And it's a really exciting space
because machine learning, AI capability, the ability to bring in chat into the
portfolio.You're seeing that is where
the expansive growth is in SFA.
KASH RANGAN:That's very cool, very cool.The future looks very interesting.We thought 25 years back, or so, that sales
automation is exciting.And 25 years
later, it's still exciting.(Laughter.)
ALYSA TAYLOR:It's still exciting.I demoed on stage, as a sales manager, being
able to see across my sales team who has sort of -- their pipeline trends, but
then also, who has negative sentiment analysis from the interactions that they
have with their customers, either through e-mail or phone, and then being able
to real-time coach, and then recommend new opportunities through LinkedIn.
that integration and the AI capabilities coming in are quite exciting.
KASH RANGAN:Excellent.Now, moving on to Power Platform, it looks like it's got all the making
-- when you look at the whole family, the PowerApps, Power BI, and Flow --I want to talk about Flow because not many
people know about Flow.We would love to
hear your thoughts on Flow.
ALYSA TAYLOR:You're going to hear lots about Flow
KASH RANGAN:Okay, excellent.We're in the flow here. Yeah, we're getting in the flow here.It feels like it's destructive.It can open up a large stem, all the things
the things that we look for, investors like, and a lot of white space as
well.Can you just walk us through the
thought process behind why Microsoft created this whole Power Platform?
ALYSA TAYLOR:Absolutely.And so, when we think about it, it's in the Business Applications family,
but Power Platform is a set of technology that spans across all assets of the
Microsoft cloud.And it was designed
very much as a citizen or a self-service platform; so being able to analyze,
automate and act on your data.And so,
if you haven't heard, we think data is our customers' greatest asset.And so, how do you leverage that data?
so, PowerApps is the ability in a visual drag and drop environment to rapidly
create modern applications.And we've
just seen incredible ground swell of citizen developers gravitating to
that.And for those of you that have
been in the industry for a while -- I've been in the developer space for years
-- you've seen these sort of citizen developer platforms come and go, but you
always hit a wall with them.
the unique thing about PowerApps is what we call no cliffs extensibility into
Azure.So, you can actually bring in
Azure services -- Azure app services, machine learning -- into PowerApp so you
have the integration directly into Azure.So the app can grow up or actually leverage more mature features beyond
the citizen developer platform.And so,
it's one where we've just seen explosive adoption to the individual --
KASH RANGAN:I'm sorry, what is a citizen developer
ALYSA TAYLOR:A citizen developer is defined as somebody
that is not a professional developer, so an analyst, somebody that is doing
unique business process functions.
KASH RANGAN:Even I can do it, right?
ALYSA TAYLOR:Yes, you can.There's a great story of a security guard in Heathrow airport.He's been on stage with us.It's a phenomenal story.He basically was a security guard and looked
around and saw all the paper-based process, taught himself PowerApps through
the community online, launched the first Heathrow PowerApp. They now have more
than a dozen PowerApps.He's been
promoted from the security guard to corporate IT and is helping them modernize
their app environment.It's a phenomenal
so, we have hundreds of those stories of people that -- you know, I built a
PowerApp for our dinner club.Anyone can
KASH RANGAN:I think to my team to issue an edict.We need to build a PowerApp to get a leg
ALYSA TAYLOR:I like it.I like it.
KASH RANGAN:Or a model.We need to have them be explosive.
ALYSA TAYLOR:I'll come back next year and we can demo your
KASH RANGAN:(Laughter.)Exactly.I'd love to do
that.Explosively predictive of the
business trends in the software sector, company by company, business by
ALYSA TAYLOR:So to your question, that's a citizen
developer.It's not somebody that codes
as a predominant part of their day-to-day job.
KASH RANGAN:Are there certain use cases that are germane
to PowerApps that have not been already automated and handled quite well in the
industry, because development drag and drops have been around for decades.So is it a specific niche that you start off
with that you excel at with PowerApps?
ALYSA TAYLOR:So, I think the visual drag and drop, it's
done in what's called an expression language.So, you can do it like you're writing PowerPoint, or a script in
Excel.So, it's very easy to learn.Like I said, there's the visual drag and drop
elements to it.
interesting thing about PowerApps, unlike previous development environments
that were low code, no code -- which is another way of saying citizen
development -- is that IT couldn’t govern them.And so, PowerApps is Azure AD authenticated.So, corporate IT can actually see all the
other PowerApps.So when you have a
security guard building an app, IT, that's actually normally their worst
now, within, because it authenticates at the org level, corporate IT can actually
see all of the apps that have been built.And so, you have this mix of very easy to adopt with the ability to integrate
into more advanced features, and then the corporate IT governance on that.And so, that's why you see rapid sort of
adoption at the individual level, but then you see organizations adopting
broadly and standardizing.
KASH RANGAN:Is it still too early, or do you have any
customer examples of how large companies have built some interesting apps with
KASH RANGAN: Besides the Heathrow
security guard who got the promotion.(Laughter.)
ALYSA TAYLOR:It's a great story.I have a video that'll make you
teary-eyed.So, we have Chevron.Chevron is a great example of it started as,
for their oil rigs, looking at how they're modernizing their out platform.The fascinating thing about Chevron was they
were talking about when you're on an oil rig and you're switching applications,
the UI consistency is incredibly important.And so, they actually are now broadly adopting the modernizing of
hundreds of their apps on PowerApps, standardizing for this reason so that they
can not only have a modern app platform, but they have a consistent UI so that
will minimize security and risk with those that are servicing oil rigs.
KASH RANGAN:Got it.The white space for PowerApps, where do you see the opportunities exist in
a way that others have not exploited? Have you already answered that question,
or is there anything else you'd like to add with respect to that?
ALYSA TAYLOR:Well, the app development is such a -- like,
just if you look at it from a pure TAM perspective, it's a very large TAM.It's always a set of enterprise
applications.That's an ongoing
investment area for organizations.And
so, I think it has a large addressable market and the unique concept that we
talked about of being able to do both end user adoption, and at the corporate
standardization level.We think that
PowerApps is a very big growth area for us.
KASH RANGAN:Excellent.Now, switching over to Flow, what is Flow?
ALYSA TAYLOR:So when we talk about Power Platform, and I
talked about there's an automate component of it.So, Flow is our modern automation
platform.So, we have hundreds of
connectors that allow you to connect different disparate data sources and then
automate different tasks.And so, Flow,
like RPA is obviously another kind of very hot term in the industry right now;
and so, that process automation.
allows the same thing that we talked about PowerApps, which is a very easy way
to do automation across business functions.Same type of concept, very easy to do is then statement, rapid adoption
of Flow as well, particularly with our Office users.We've seen high Flow adoption within the
KASH RANGAN:So, Flow works with PowerApps,
obviously.You can build custom
ALYSA TAYLOR:Yes, it's embedded in PowerApps.Yeah.So within any business entity, you can automate.And that’s why the hundreds of connectors are
so important, because you can connect different data.And then, you can do it in the consumer space
KASH RANGAN:This whole area of workflow more about
speaking to the flow the way you describe it, has gotten quite a bit of
attention.There's another company,
ServiceNow, that has been talking about workflow automation as a big
opportunity.Why now, and what are
Microsoft's strengths approaching this workflow market?Only two companies have spoken about it.Why is there so much excitement here?
ALYSA TAYLOR:Well, if I look at it from why it matters to
an organization, because there are so many tasks, particularly when you get
into industries like manufacturing.There's so much opportunity, like job task analysis, to be able to
automate those.They're very manual
today and they're costly, and they're error prone.And so, being able to automate those is
something that companies are now looking at what is a way to do that.
would say ServiceNow and Microsoft are the big players that are talking about
it, but there's a bunch of emerging companies -- UiPath, like if you think
about it in the RPA space, Automation Anywhere.There's just quite a few that are emerging in this space to able to take
those tasks that are repeatable and automate them.
when we think about Flow in particular and why I say you'll hear us talk a lot
more about that, there's some unique things that I think we bring to bear for
Flow, which is, one, we have the predetermined connectors.So, you can connect across any data source both
on-prem as well as in the cloud.And
then, you have the ability with that Office integration.
if you think about it from a tasks perspective, you have your frontline worker
that typically has some type of Office application that they're using. And so,
being able to automate both on the backend and on the frontend is something
that's very unique that we bring to bear in the automation space, or workflow
KASH RANGAN:So far, I think a lot of us who are under the
impression that -- this is more of a statement, not a question -- that
ServiceNow is the only one talking about it, now you've got Microsoft talking
about workflow automation.So, it's
going to be truly exciting.
I just want to make a quick pause to check to see before we get into BI if
there's any questions for our presenter.Do you have a question, Shankar?Go ahead.
ALYSA TAYLOR:Absolutely.It's a great question.So while
Flow is obviously a great asset within Dynamics to be able to automate
different workflow tasks, as I was saying, the adoption within Flow has
actually been our highest within our Office space.But you can use Flow across any data set of
assets.And so, the go to market is a
reason we're sort of coming out more broadly now with Flow is we're changing
the business model around Flow so that it is widely adoptable and broadly
available to corporations as a standalone offer.
KASH RANGAN:Brilliant.Moving to Power BI, it looks like we hear a lot about Power BI these
days.Why is this product so unique?
ALYSA TAYLOR:Well, so it's in that same family of when we
were talking about the Power Platform.The theme of Power Platform is self-serve, right, and the very ability
to do self-service, in this case, analytics.So, Power BI is very akin to PowerApps in terms of the adoption
pattern.So, you see analysts using
Power BI, graduating beyond Excel functions to be able to do analytics in a way
that is a very low code, no code type of environment; so self-service BI.And then, because Power BI is effectively
built on an Azure Data Lake, you can ingest all different types of data to be
able to do that BI self-analyzation, and at the corporate level as well.
you see there's a common theme between PowerApps and Power BI, which is
enabling self-service at the individual level, and then what is the sort of
corporate function as well.And so, BI
in general has really matured as a category.And so, Power BI, again, we've brought in -- we actually just released
being able to bring in cognitive services, text recognition, new AI capabilities,
and then having this direct import export into Azure Data Lake.So, some really enterprise-grade features
that have come into a self-serve BI function.
KASH RANGAN:So, it doesn't feel like it's just a
replacement cycle, or is it a replacement cycle with a traditional BI
landscape?Or is it something more than
a replacement cycle?
ALYSA TAYLOR:Well, I think you see both, right?Again, it comes down to when you're doing --
if you are using BI to analyze a particular function or a department, but then
you see as adoption grows throughout an organization, then you actually see the
replacement cycle come in of legacy BI.
KASH RANGAN:So are you seeing that replacement happen
right now of all the old 15-year-old technologies, 20-year-old technologies?
ALYSA TAYLOR:Yes.Yes, we do see that.And it was
interesting, another customer story.I
was with the CEO of Air New Zealand.And
he actually said, "If I had gone through the process of putting out an RFP
for modernizing our legacy BI systems," he was like, "We would have
been in multiyear going through all this evaluation."And he was like, "I was just told by the
analysts on my team that we were going to Power BI," because it was so
pervasive within his leadership team and within his analysts community.And so, you see this groundswell that's
influencing the modernization cycle and the upgrade of the legacy cycles.
KASH RANGAN:Excellent.Let me look at this whole BI space.What are the analytic technologies that excite you the most as far as
future potential, the fundamental analytics technologies?Anything that you could point to?
ALYSA TAYLOR:Well, I touched on it a little bit, but it's kind
of a -- if you think about cognitive services within analytics, that's a very
KASH RANGAN:Yeah, tell us more.What is cognitive services?
ALYSA TAYLOR:So if you think about facial recognition or
speech recognition, so being able to, within Power BI, analyze like we talked
about for inside sales, being able to analyze and understand call patterns of
your inside tele-vendors.Being able to
do that, to bring in sort of speech recognition and then being able to analyze
patterns on it.
other thing that I think that we've seen particularly within power BI that is
unique in this area is being able to actually do trends within Power BI.So, I get an alert every day that says
certain dashboards have had new data, or new functions analyzed, and I get a
report that actually tells me across all my dashboards what has changed.So, you actually see analytics within
analytics, which gets exciting.
then, the other thing that you'll hear more about from us is being able to do
deeper, more embedded analytics, so not having to go into a BI application, but
how you can actually take advantage of the rich analytics capability in things
like PowerPoint, Excel, so continuing to build that out in the applications
that people use every day.Having that
self-serve BI embedded, that's a very exciting space in the analytics.
Google just talked about it.They just
came out with talking about their integration with Google Sheets.You see this move to going to where people
are every single day to be able to do analytics versus pulling them out of the
KASH RANGAN:Got it.You also have this co-competition aspect with analytics technologies who
want the analytics companies to run on the Azure cloud.So how do you see the partnership wanting
other BI companies running a cloud versus wanting to be a BI powerhouse
ALYSA TAYLOR:Well, I think that's the world we're in.The Business Applications space, I think, by
definition is cooperation -- or co-competition.(Laughter.)
KASH RANGAN:You have SAP running.
ALYSA TAYLOR:We have SAP, we have Adobe.And so, if anyone in the audience has heard,
we announced something called the Open Data Initiative last fall.And the thing that I like about that, it's
across Adobe, Microsoft and SAP.And the
reason that we came together, even though there is competition at the app layer
between all three companies, we're committed to being able to have this open
data standard so that you can actually have data and a common data layer shared
freely across the applications.So think
about it as bringing together data, enriching it, and then flowing it back up
through the app layer.
so, when you center on this notion that applications should free data and not
house them, then a lot of the -- that's where we come from when we have
partnerships across the ecosystem.It's
in pursuit of freeing customers' data so that they can get more from their
KASH RANGAN:Historically, you've seen the BI landscape
evolve, and then the applications companies, they're somewhat late to the game
but they end up getting there.You saw
this Cognos, Hyperion business objects, probably half a dozen analytics, pure
standalone companies.And ultimately,
companies start to build, they were not as good as a specialist, but then they
ended up being good enough.And they
ended up acquiring the Pure-play BI companies.
do you see this playing out in this cycle?Is there something different that makes standalone analytics
technologies more viable in the long run?Or do you think the system's -- I guess you both -- you have a Dynamics
business and you have a BI business.But
your broad thoughts on how this space evolves.Is it going to be the domain of the companies that have all the business
data in the RFP system, or do the pure BI companies end up being more viable,
that they can be the best and still have a thriving business without having any
RFP or HCM, or a CRM system?
ALYSA TAYLOR:I actually think about it slightly
differently because I think those -- and you'll see this with what Salesforce
announced with MuleSoft.You see this
actually with some of the work that SAP is doing, as well.The race I think is not at the app layer. Actually, the race is at the data layer.And so, the more that you can aggregate data,
whether it be from an ERP system, or from a CRM system, or name your on-prem
legacy system, and then have that data, be able to analyze it, to automate it,
to build up new applications on it.I
think that is actually the future more so than the Pure-play BI versus those
that are good enough.
interesting thing in this space right now is it used to be, historically, in
all definitions -- BI, ERP, CRM -- Pure-play, and you see every single one of
them expanding, knowing that it can't just be about having one function.It's about how do you cross pollinate and be
able to maximize that data and use it in new ways, and reason over that data,
and garner intelligence, because in the world that exists today of doing ETL,
so, there's this natural gravitational pull to be like how do I take all of
this business data I have --
KASH RANGAN:ETL never sounded good from the get go.(Laughter.)Extract, Transform (laughter).
ALYSA TAYLOR:Yeah, exactly.(Laughter.)That's why no one ever defines the acronym.
KASH RANGAN:Excruciation, Torture.
ALYSA TAYLOR:(Laughter.)Expensive.So, I think that is
the race right now more so than the kind of app layer.
KASH RANGAN:Anybody have questions?We might actually call it a few minutes early
if there aren't any.
PARTICIPANT:In the Flow area of your business, when you
get to market, who do you usually come up against and how does that work when
you go into a new customer to win business?
ALYSA TAYLOR:So, ServiceNow is probably the largest in the
workflow automation space.In the RPA
space, you find UiPath, Automation Anywhere as well as the emerging players
that are very industry specific, like Drishti that's really more on the sort of
process automation with things like perception analytics being able to do image
I think ServiceNow and actually Pegasus, too.They've sort of redefined into kind of the RPA category into the digital
DPM category.So, Pegasus and ServiceNow
are probably the two biggest.
for us, as I talked about, is largely a seated-free product.And so, we are evolving the business models,
and more to come on that.So when you
talk about an RFP, we are right now at a high adoption curve of Flow, but it's
not a standalone business that we're monetizing yet.
KASH RANGAN:Any other questions?
if there aren't any questions, I just want to make a very special mention.The topic of women in executive leadership of
prominence, particularly in the technology industry, is something that we pay
close attention to. So it is a real delight to have someone from Microsoft, a very
rare representation in this conference in particularly to have a women executive
to present. It is really awesome to see that. So my hope is that in 5 to 10
years from now we will have more women like you presenting on behalf of their
companies and we will have more of our clientele be women. It is a topical that
is close to me because my wife is an executive in the tech industry. I also
make it very clear that my team needs to be fifty-fifty, women and men.
to you and thank so much for your time and attention.
ALYSA TAYLOR:Thank you.
More events coming soon
July 18, 2019 2:30 PM - PT
Microsoft Fiscal Year 2019 Fourth Quarter Earnings Conference Call