Jared Spataro, Jeff Teper, Scott Guthrie and David Sacks: SharePoint Conference 2012
Nov. 12, 2012
Remarks by Jared Spataro, Senior Director, Microsoft Office Division; Jeff Teper, Corporate Vice President, Microsoft Office Division; Scott Guthrie, Corporate Vice President, Server & Tools Business; and David Sacks, Corporate Vice President, Microsoft; Las Vegas, Nev., Nov. 12, 2012

ANNOUNCER: Ladies and gentlemen, please welcome on stage Senior Director of SharePoint Product Marketing, Jared Spataro. (Cheers, applause, music.)

JARED SPATARO: Well, good morning, everyone. Welcome to Las Vegas, and welcome to SharePoint Conference 2012. We've got a great week for you, and we're so excited to have you here. How is the SharePoint community doing today? (Cheers, applause.) Is that all I get? How's the SharePoint community doing today? (Cheers, applause.) All right.

Thank you for joining us for our keynote session this morning. And a special thank you to our keynote sponsor Adpoint. Adpoint has been a SharePoint partner since 2001 and they specialize in enterprise-class governance and infrastructure management solutions. As you see, your SharePoint, our innovation, that's Adpoint. (Cheers.)

You know, it's an amazing time in our industry and an incredible moment to be here together. For starts, just look at the SharePoint community. This community has never been more active and engaged than it is today. Some people think that SharePoint is just a product, but many of us know that actually it's much more than that. It is a way of life.

And you know what? The people behind the SharePoint community, the developers, the customers, the partners, the community advocates, they demonstrate an amazing amount of passion, something that you just don't find anywhere else.

So as we were getting ready for the show this year, I asked my team to put together just a little bit of a graphic to show you what I mean.

Take user groups, for example. Around the world, we have more than 65 user groups to get together on a monthly basis to share best practices and network. They're active, they meet, and they get things done.

Or how about our MVPs? Most Valuable Professional status is awarded by Microsoft to technology leaders who take their expertise and their experience and share broadly with the community. These MVPs come from a variety of backgrounds and they represent the best of the best in the industry.

And of course we can't forget our MCMs and MCAs. Microsoft Certified Masters and Microsoft Certified Architects are the top of the top and the most accredited SharePoint professionals in the industry.

But you know what? It doesn't stop there. SharePoint Saturdays, which many of you may have attended, are a phenomenal example of the energy and enthusiasm of the community. These SharePoint Saturdays happen all over the world. They're typically one-day events that bring together experts from all over the world who fly in to teach and share their experiences at a local level.

The largest SharePoint Saturday that I know of happened in Washington, D.C. and attracted more than 2,000 people. And because the SharePoint community loves to party, we have many community-organized SharePoint conferences that happen all across the globe. These attract talent from all over, and help the community get more organized and network together.

And then, well, and then there is the SharePoint Conference. There is no better example, no better way to see the passion and the energy, the enthusiasm of the SharePoint community than by looking around the room today. We have over 10,000 registered attendees who are joining us from 85 countries. We have another several thousand who are joining the keynote via a webcast this morning.

As you mix and mingle throughout the expo hall or in sessions or after-hours events, you'll also meet folks from over 200 sponsors and partners. This is truly an amazing community.

Now, on behalf of all of the folks at Microsoft who work so hard to bring you the product that you know and love, thank you. Thank you, thank you. We're humbled by what the SharePoint community is, and we recognize that the success of SharePoint is due to your work.

We also made a really big effort this year to ensure that the SharePoint Conference is more community oriented than ever before. In addition to the regular lineup of speakers, sessions, and our after-hours activities, we've also introduced something called the SharePoint Community Lounge. It's a place to gather together so that you can get more involved.

You may have seen that we're piping SharePoint TV into all of the conference hotel rooms so you can visit the lounge to record a message and perhaps even get discovered. Or visit the SharePoint Wall, you can sign your name and become a part of history.

And if you're not already registered with your local user group, I'd encourage you to go to the lounge and meet some of the folks from your neck of the woods.

Now, community connections are an important part of what will make the SharePoint conference this year an incredible experience. But this is a unique time for another reason as well. And to frame the rest of today's program, I want to put this moment in context. I want to give you a sense for why we here on the SharePoint team think of this as a pivotal moment for SharePoint as a product and as a business.

A little more than 10 years ago when we first started working on SharePoint, the world was in the midst of a massive transformation. The Internet was new and exciting. Information was exploding and going digital. And search, well, search was emerging as really the first killer app on the Internet. These new technologies reshaped business in incredible ways, and they brought structural changes that have kept the captains of industry busy for more than a decade.

Now, back in those early years, we saw an opportunity. At a time when websites were largely the domain of experts, kind of high-end Web professionals who worked on development and design, we had a very radical idea: websites for everyone. We focused on the end user and we used collaboration as the starting point. And we made it easy for anyone and everyone to set up a website. Personal site, team site, sites for your department, sites for your entire company.

And when economic pressures pushed companies to do more with less, we responded. First by adding deeper collaboration capabilities, and then as you see up on the slide here, document management, portal, search and business intelligence features.

But we didn't stop there. We recognized that companies were going to need to take our product to places that we could only imagine. And so in addition to providing out-of-the-box apps, we also invested very heavily in the platform capabilities of the product. We extended ASP.NET. We plugged into the tooling of Visual Studio. And over the course of a decade, we plugged away at this strategy. And with the help of this incredible community, have grown SharePoint from what was a upstart to what is now an established business that makes more than $2 billion a year.

So in the middle of all this, so here we are in 2012. And once again, what's really exciting for me is that we find ourselves in the midst of another very massive transformation. The cloud has altered the economics of computing. Mobile devices have made technology an intimate part of our lives. And of course social networking has really rewired the way that we communicate and collaborate with other people.

These new technologies are, again, reshaping business. But this time, instead of one-time structural change like we had the first time around, we're seeing that they're creating a world of constant change. Suddenly, the name of the game is agility. You never know what's around the corner, but you have to be ready to respond. And the old models, the traditional ways of setting strategy and executing, well, they're giving way to things that make you more nimble and faster on your feet.

So in the middle of all this, we again see another opportunity. At a time when in our industry the cloud, mobile, and social are largely thought of as very, very disruptive forces, we are embracing the change. We've doubled down on the cloud, and we're investing heavily in taking the cost savings that come to us through economies of scale and passing them on to our customers.

But what's more, we're helping IT to focus less on keeping the lights on, and more on driving real business results.

We've also added native mobile apps for Windows, for Windows Phone, for iPhone and for iPad, providing everywhere access to information and people. And we've integrated social very deeply into the product, creating new experiences that are really designed to help people collaborate more easily and help companies to be more agile.

But you know what? SharePoint 2013 isn't the new way to work simply because we've made these big bets. We really try hard to do that every release. For us, SharePoint 2013 is pivotal because it's the beginning of a new era. We think of it as a bridge between where we've come from and where we're going. It's the end of our three-year release cycle, and the beginning of cloud updates every 90 days. It's the culmination of 10 years' worth of work on a site-centric model, and the introduction of a much more people-centric paradigm.

And with the addition of Yammer, SkyDrive Pro, and the new app model, all of which you'll hear more about today, we think we're poised for another 10 years of phenomenal growth. It truly is an amazing time in our industry and an incredible moment to be here together.

In our keynote this morning, we're going to take a whirlwind tour of SharePoint 2013. But perhaps what's more important, we're also going to share with you a behind-the-scenes look at what we were thinking when we designed the product.

We've organized our time together into three core concepts: Experiences, which are enhancements designed to make SharePoint easy to access and a joy to use; innovation, investments in the core capabilities of the product; and ecosystem, exciting updates for developers, including a new app model and the SharePoint Store.

I know that many of you know Jeff Teper, the veritable father of SharePoint. Jeff has been with SharePoint since the very, very beginning. And I'll tell you what, he has been very busy over the last few years. He will cover the experiences and innovation portions of the keynote this morning, and he'll start with a tour of Office 365, our cloud offering that brings together Office, SharePoint, Lync and Exchange into an integrated, online suite. He'll also then be joined by our special guests, David Sacks and Adam Pisoni, the two co-founders of Yammer.

We'll close out our session today with a special treat hearing from Scott Guthrie, the corporate vice president of Windows Azure. Scott's responsible for delivering the development platform for Azure, as well as the .NET Framework and Visual Studio. He was a founding member of the .NET project way back when, and has played a really key role in everything that Microsoft has done around development platforms since 1998. And although he won't tell you this, he really is a legend in his own right in the dev community.

So without further ado, it is my pleasure, then, to welcome to the stage Jeff Teper. (Cheers, applause, music.)

JEFF TEPER: Well, thanks, Jared. And thanks all of you for joining us this week. Thought I'd take a little survey. How many of you are here at your very first SharePoint Conference? (Cheers, applause.) Good. Good. I think as Jared talked about, you're in for a special treat. This is an amazing community, and we're really excited and hope you'll come for many more SharePoint events going forward.

How many of you were here last year at the last SharePoint Conference? (Cheers, applause.) Awesome. You might remember I wrote a check. We didn't talk much about the next release of SharePoint at that event, and I wrote a check that this event would be the biggest and best release of SharePoint we'd ever done, and the biggest and best SharePoint Conference we've ever had. And I think at the end of the week, you'll probably give us good marks, but we're certainly eager for your feedback along the way.

I am really, really fired up, the team is really, really fired up. They've been working, obviously, as Jared said, for quite a long time on the new release of SharePoint. But just in the last month or so, it's been really fun to see folks scurrying on the hands-on labs and their demos and their slides. They are really -- I can't tell you how much pride they have when they get to take the product and come here and talk to you about it, hear what you're doing with it, get your feedback, get your reaction. So we are really, really fired up to be here this week and thank you for taking your time to join us.

As Jared said, this is a pretty big milestone for us. You know, we've done the SharePoint business for quite a while. But about two and a half years ago, we did something that's very hard to do in the technology industry, which is split an engineering team on two parallel tracks.

We had about half the team working on enabling the underlying infrastructure at SharePoint to work in the cloud. Our goal was very simple: To build the largest-scale enterprise cloud service in the industry. To be able to take the billion Office users and be able to run the full back end services in the cloud with Office 365.

So a lot of work went on from provisioning to telemetry to disaster recovery, building out datacenters, hundreds of millions, if not billions of dollars investment, and 18 months ago we shipped the first version of Office 365, including SharePoint Online, and have been updating that regularly ever since and meeting our SLAs. And we've really, really enjoyed the feedback from customers on Office 365.

So that was one part of the team. The other part of the team, we said let's not do a minor dot release of SharePoint, let's do the biggest and best release of SharePoint we've ever done. Whether it's social networking or enterprise search or content management, and really at the core, improving the underlying user experience and development platform of SharePoint so we can take the ecosystem to the next level.

So we are really excited and maybe a little bit relieved, to be honest, to be at this day where we've got Office 365 up and running, we've shipped the 2013 server, we're in the process of updating our datacenters around the world over the next few months to the new build, and we're really, really excited about that transition point because now we're going to be updating the cloud much more frequently. We've laid the underlying infrastructure to run the engineering work at the scale with enterprise availability and you'll see a lot more iteration from us over the next coming quarters and years from us.

As Jared talked about, there's a lot to this release. And to be honest, I think about three weeks ago when we were looking at the agenda, we put about six hours of content in the keynote. And we were all just going to talk three times as fast. And I thought that was a bad plan. So, fortunately, we've got a lot of sessions to cover the depth of the product. We are going to talk about the three pillars, as Jared said.

The user experience work we've done across the Web, mobile devices, and the rich Office client, designed to make it easier to work and collaborate than it's ever been. That's the first pillar.

The second is the innovative capabilities from BI to search to content management that helps organizations get work done at lower cost inside and outside their organizations.

And the third pillar being the new application model that's going to take the SharePoint ecosystem that is already the largest ecosystem in the industry around collaborative applications and take it to the next level.

So rather than going through a bunch of slides, I am so excited -- I think I mentioned last year that we had four times the number of people working on the user experience for the next release of SharePoint than we did the last release. I didn't show you a preview of that last year, I wanted to, it wasn't quite far enough along. I am really excited about the new user experience. I've been using it every day for months. So let me start by showing it to you personally.

We'll bring up a preview of the Office 365 release. The things I'm going to show you are in the context of Office 365, pretty much everything you can see here, though, will be something you can run in your own datacenter if you want. And we very much focused on streamlining the user experience across Web, Office, mobile devices, for the entire Office suite, the applications, Exchange, SharePoint, Lync.

So you can see a really nice, clean UI. I'm logged in. I've got access to my mail and documents, just as you'd expect. And right here, I'm going to go quickly through some of the Outlook Web Apps capabilities just so you see the consistency with the new SharePoint.

I've got this in line, and I'm going to filter very quickly. I'm going to see my unread messages. That looks great. Maybe I'm going to reply. I'm going to reply right in line without refreshing the page. That's pretty slick. I'm going to go to my calendar. I see the appointments I've got for today. I'm going to refresh to the work week. That pane -- this is all in the browser, no ActiveX code, this runs on any modern Web browser platform on any device. And I can switch back and forth and you'll see the nice animations.

I've got a people tab that takes people from my contacts, from Active Directory, connects information from Lync so I can IM or have a voice conference with somebody, brings in my information from SharePoint so I can get the user's profile and their activity feeds to get more about them. So, really, streamlined across the Office suite, bringing mail and documents and sites together in a consistent experience.

Now, let me dive a little bit more deeply into the SharePoint modules. And I'm going to go through, really, three phases. One is talking about documents, the second is talking about sites, and the third is talking about social conversations.

So let's first switch into documents. Many of you are familiar with our My Site feature we've had for years in SharePoint. This idea of a personal page that has personal storage where you can share documents with people.

We thought that it would be a really great way to reflect the new work in the new UI to evolve the brand of that to be aligned with Microsoft's personal cloud storage service, SkyDrive. So we're calling the personal document feature of SharePoint that's available in the server or the service SkyDrive Pro.

So you can see here I've got my documents. I've got a bunch of them, a bunch of folders here. In addition, these are my documents stored for me. I can also follow documents across any SharePoint site. So if you're like me and work in a big company with 90,000-plus people and tens of thousands of sites, I'm following stuff left and right, and I don’t want to remember the URLs or favorites. Again, in a modern world, I'm using multiple devices and browsers. And I want those documents I'm following to be with me anywhere.

And so here they are in the left part of the page. I've also got documents that have been recommended to me by that new Fast Search tech we've integrated across SharePoint and Exchange. So that's documents I'm following.

The other thing we show in the UI is recent documents. This is the list of documents I've opened, edited, read. Pretty much anywhere I go, this roams through the cloud, this connects to the new Office, and sort of the analogy I use is this turns Office into a Kindle or Netflix-like experience. I get a new device, connect it in, open it up, go to Office 365, and it remembers not only the documents I've read, but if I open it up, it'll even know what slide I'm in on PowerPoint and bring me right to that slide, just like a consumer experience in Kindle or Netflix.

The next thing I thought I'd show is some of the things we've done to really address the feedback about simplicity in SharePoint. People have asked us for a while, hey, you know, I've got all these documents, I can't find the one I wrote and who's got access to that document in the first place?

So I could go to a search page and do a search, but we really simplified and streamlined this. So if I'm going to search right in line for a document about Contoso, hit enter, and if I could type -- there we go. I'll filter out the list of documents not only that have "Contoso" in the title, but have "Contoso" in the body, regardless of where they are in that folder hierarchy. I don’t have to think about folders or subfolders. This is the list right there. So these are the five or six documents about Contoso. That's great, now I can find things that I've worked on.

The next thing people have asked us for is, hey, I shared this thing, but who's got rights to this document? I don't remember. And I go into the site settings page and it's a little bit scary and I don't want to go back there. My IT folks like that page.

So we really tried to make figuring out who you're sharing stuff with quite simple this round. You can see we have a bunch of things that are not shared with anybody, they have a lock. That's pretty straightforward. This document is shared with some people. If I click on it, I'll get a preview and I can see Michael and Katie have access to it in addition to me.

So that's another thing we've done across the SharePoint user experiences. Instead of bringing up new pages and switching your way, really, right in line you can get access to the information you need.

Last thing I thought I'd show around documents is the work we've done to make it easier to create a new document. Across the Office suite, we save to the cloud by default, so hitting "new" within Word or PowerPoint can save you right to SharePoint on premises, or in Office 365. We also allow you to make a new document right within the browser. So if you don't have a copy of Office on this machine, it'll bring up the Web app and create a document right in the SharePoint site. That's pretty cool.

But one we've been asked for for quite a long time is drag and drop, and doing it in a way without requiring ActiveX controls, so it'll work, again, on any modern browser.

So I'm going to take this document, drag and drop it to the site. It will upload it, and you can see right there, modified a few seconds ago, that document is up on the site. (Cheers, applause.)

All right, for the folks back in Redmond, whoever had drag and drop in the pool as getting the first big applause, you win. I wonder -- I don't know how much the pool was, but we do that. (Laughter.)

Anyway, this is the new hover panel. I've clicked on this document to get more. You see a preview of that document. Yep, that looks about what I wanted it to look like. So far, it hasn't been shared with anybody. Let's go do some sharing. That's another thing we've focused on. I'm going to share it with somebody inside my organization and outside my organization.

So let me type "Olaf" and sure enough, it auto completes. All this is live against the back end in Office 365. It knows Olaf is there, I'm going to share it outside my organization with a guy at Test.com, trust me, it's a real person. I was going to do my own Hotmail account, and I figured that would be a bad idea. I might get a few emails today.

Anyway. The neat thing about this, obviously, you can turn off the external sharing. We hope for a lot of sites for communicating with customers and partners you leave it on. We can require sign-in, or if we turn it off, we'll send an anonymized URL to somebody so they don’t even have to access -- create an account and log on, they'll be able to read the document with really very little friction.

Last thing we'll show in the context of the document piece is how we've made synchronizing really easy. You can see last release we had the ribbon, a lot of commands showing up by default. This release right now in this document library, we've got only one, which is synch. So synch this document library, my personal SkyDrive Pro offline.

I've already set that up, so let me bring that up in the browser and you can see -- sorry, bring that up in the Explorer. You can see my personal SkyDrive down here, that's my consumer stuff. My work stuff shows up as SkyDrive@Contoso, that's how we show SkyDrive Pro in the user experience. And you can see access to all the documents there, including this administrator guide that I just uploaded. They synchronize wherever I go, and across multiple devices with the new SkyDrive Pro.

If you've been paying attention to our betas and so forth, you've seen this. I thought I'd show you next something you have not seen before, we've not shown it anywhere before, which is a preview of the new SkyDrive Pro that we’re working on that will come out natively for Windows 8.

So let me bring up this Windows 8 slate right here. Very nice, hope everybody is looking at a Surface if not buying one, it's a great device, I love mine. Anyway, you can see SkyDrive right there. I'm going to bring back -- oops. There we go. Come on. I'll bring back SkyDrive Pro, and you can see that the same documents are there, selling the XT series, and so forth. I'll click in and get the documents associated with the SharePoint Conference right in line.

We're working on native SkyDrive Pro apps for both Windows 8, Windows Phone, IOS, including iPad and iPhone, and those will be available early next year. So that is the new Windows 8 application for SkyDrive Pro that connects to SharePoint in the cloud. (Cheers, applause.) Yeah.

All right. We've talked about documents. Let's next talk about Sites. We love Sites. And so I'll click on that, and you'll see the new Sites hub that is a part of SharePoint in this next release.

And just like with documents, we want to help you find the things that you're following, and you see that at the center of the page, so any one of the sites that you're following. We also show you sites that have been published to you. Maybe your intranet portal owners will publish that out at the top with a nice picture, and then again, the Fast recommendation technology will look at your usage profile and activities and characteristics about sites and recommend things that you might want to see.

In this case, I'm going to go click on the SharePoint Conference site and bring up a new site that's been left pretty much out of the box. So I wanted to give you a sense of how clean we've made the new look of SharePoint.

And, again, the command set is pretty straightforward. The basic things you do with any site. You want to share it, you want to follow it, you want to synch it, edit the site, even go into an immersive mode, which is great for a smaller screen that you might see on a Windows 8 device like a Surface or an iPad where you really have limited pixels to take a look at the site. And so we can switch back and forth really easily to that.

You can see we've started a new SharePoint site with this "getting started" bar with information to help you get going with how to add things to your site. You can remove this, but I thought I'd give you a chance to see just one of the capabilities behind it. In this case, this is how we change the look of the site. I'll drag that over here. Let's pick a style. That one looks kind of cool. I think SharePoint is a little more blue, so let's go with that. That picture is a little psychedelic, let's take a different picture over there. Apply to the background, no, that's not good. How about the SharePoint logo? It'll turn it into a watermark for the site just like that.

No editing CSSs or opening things up in a separate app. You can do things right in line. You could preview it and before you commit it, you can change it back and forth. So really, trying to make it simple for any user in a matter of seconds to apply their own style to a SharePoint site. (Applause.) Great. There's no second prize in our pool. The first prize gets the whole pot.

Next thing I thought I'd show are the content areas. And you can see, we've got documents here, so again, you can make a new document. But we've added conversations to every SharePoint site by default. And you see this news feed here, a lot going on. Jared has mentioned me, so I might want to take a look at that. He's posted an Office road map doc right in place. I can open the Web app so I can look at that right I line without popping up a separate window. Great. Jared, that looks like an interesting doc. So I've got that news feed and documents side by side.

Middle of the page, we've got an app. And Scott Guthrie is going to come up later on and talk about building apps for Office and SharePoint. I won't go through that in too much detail, but this one's a pretty interesting one. It's one we've done out of box to make project and task management really, really easy.

And so if I click into this to see a little more detail, I've got this -- it looks like we're right on time for the show time. It's been assigned to me for three days. That's great. I've got a bunch of other tasks here. OK, that seems pretty straightforward. But this brings up another challenge we've had in SharePoint. I'm on lots of teams, lots of projects. How do I keep track of all those things?

We have a new feature we call "all my work in one place in SharePoint" that aggregates all your tasks from all your sites and synchronizes them with your personal tasks in Exchange so you can see those all in one place. I've got my personal tasks, SharePoint Conference tasks, the XT 2000 launch. Yeah. (Cheers, applause.)

Project team that did that work with the Exchange team, super happy about that. That synchronizes back through Exchange, so in Outlook, in any device with Outlook and Task, you'll be able to see all your work in one place. So that's Task keeping track of them across the organization.

Last thing I thought I'd show is our new news feed. This is, again, something we've really focused on to bring together conversations and activities in SharePoint in a streamlined, clean UI. I've got on the right side the things I'm following. We talked a little bit about following documents and sites. I can follow people and hashtags. Here we've got some trending hashtags. So, again, this idea I've got my personal space, I'm on lots of sites, I'm visiting, reading, and I want to poke stuff to keep it later, but I want to be able to go back to that in different devices and not have to save favorites in multiple places. And some of those, quote, favorites are actually people. So they're not really pages. And I want to really be able to keep track of all those things and get back at them later on. This universal following feature we tried to make really clean on the right side of the page.

In the center, we've got a conversation view. And you can see we've got pictures and that preview that Jared posted. That bubbled up from the team site to my overall feed. I can scope things -- like I'll scope the feed to just the ones that are mentioned to me. And sure enough, a bunch of the clutter goes away, and I see this Office vision road map just there.

But I'll go back to the site because it looks like somebody posted a video, and I want to watch this video. And, again, right in line with the play, not bringing up a separate window, right within the context of the Web browser. Great.

Well let me talk about posting to the feed. Clearly, you can post to everyone in your company, which is a fine thing to do, but a lot of times you just want to post to a group. In this case, I'm going to post to that SharePoint Conference team site we saw earlier, so only people who have rights to that site will see this post.

I want to save something to Jared, and sure enough, we'll auto complete at mentions, so it knows Jared's the only person in the directory who starts with a J. And I want to talk to Jared about marketing. So I'll type the hashtag symbol, type in M, and it knows the tags that begin with M. And I'll pick marketing campaign and post that right away, right within the context of the page without refreshing. And, again, Jared will get an email about that because he's been at mentioned, he'll be able to see it on his feed or on that site. But nobody who doesn't have access to that site will see that post.

That is a quick tour of the social features within the Web. I next wanted to show you one new thing we've also never shown before, which is the mobile app for our social features. And let me bring up a slick Windows Phone 8 and show you right in the middle of the screen, we've got a nice SharePoint icon. I'll click on that. And you can see the same following, everyone, at mentions, me, I can go look at documents, I mentioned all those documents I'm following, they're right here. All this is available on this Windows Phone app, which by the way, we are shipping as of today. So you can all download that from the Windows Phone Marketplace and install it on your phone. It runs on Windows Phone 7 as well as Windows Phone 8, and we are working, again, on IOS versions of that that run on the iPad or iPhone that will be available early next year. (Cheers, applause.)

Great. So that's a quick tour of the UI. There's a ton of stuff -- I did this demo last night, I had twice as much stuff. I cut a bunch of stuff out. The people who are doing the breakout sessions are really happy that I didn't steal their thunder, but trust me, there's a lot of cool stuff we didn't show.

Oh, there's one other thing I wanted to talk about, and this is something that I had a plan for a couple months ago. That entire demo looked pretty fast, you saw it refreshing the body of the page without the overall page, lots of posting back and forth. Lots of times we do these conferences and we're running petabit Ethernet to the computer in the back. We decided to run this live against Office 365. No big deal, you've seen cloud demos before.

We decided not to run it against our U.S. datacenter in Office 365, we ran this against a production tenant in our European datacenter. That demo was 5300 miles away in our Amsterdam datacenter with that kind of performance. So if anybody ever says, "Gee, I don't know if SharePoint is fast enough, or I don't know if going to the cloud I'll get the performance I need." You can say, "I saw Jeff do a keynote demo in Las Vegas around the world where sub-second page refresh times were just straight through the entire user interface." So a lot of work going into the core performance of SharePoint. (Cheers, applause.)

Thanks. This is definitely an under-the-covers things. The team worked super, super hard on a lot of the back-end stuff and how we render pages to get that kind of performance. Amazing team, they did fantastic work.

So you saw us talk about social, new sharing, new experience, new mobile experience. Let me next talk about Yammer. Jared mentioned Yammer. We did this major acquisition, we're super excited about it. But I know talking to people last night that a lot of people are curious. Hey, part of why I came this week is to understand what you're thinking about Yammer and where you're going with it.

While the new SharePoint has a lot of great social capabilities, we acquired Yammer to take social to the next level. They are really an amazing team. So as we got to know them, it hit us that we have at the core the same vision. That we believe in collaboration technologies that we can give to people to help them get work done to help break down silos in organizations, to help those organizations be more effective and reach out externally to their customers and partners to get business done better than ever before. So at our core, it's the same vision.

But we're very complementary. SharePoint, as you just saw, came at this more from the documents and sites and applications space. Yammer came at this more from the social conversation space, so there's a very natural synergy between the two.

So we did the acquisition. We're superexcited about Yammer, and there's really three main reasons that I want to emphasize for all of you why I think this is going to be a great, complementary relationship.

First, Yammer is the leader in enterprise social. They've got the most users, they've been pioneering features, their latest release they just did last week, as a matter of fact, has tons of new stuff you'll hear about in a second. It's really, really great. So we thought it would be fun to give all of you the best in enterprise social combined with the best in enterprise collaboration in an integrated offering.

That's sort of a straightforward reason why we acquired Yammer. The second reason is they have a really neat development cycle based on data in their service where they learn what's engaging users and what's not. At the end of the day, they say, gee, this feature is not being used, or this feature caused a user to be more productive, let's do more of that. And they can do experimentation in the service.

We've been doing some of that in Office 365 and Azure, but it's sort of a way of life at Yammer. And so it was really exciting to get the teams together and this is something we're going to do at the core of SharePoint and Office 365 as we evolve to these analytics-based, data-driven, fast-cycle approach to updating in the cloud.

The third reason we were excited about Yammer is they've pioneered this voluntary adoption approach where end users pick their own enterprise social tools, advocate those to others in the organization. It's a little bit disruptive, much like SharePoint was in the early days with Windows SharePoint Services. We kind of like that, some end-user encouragement of IT to get the latest and greatest collaboration tools.

But the thing that's been neat about Yammer is their model helps organizations, both users and IT, get comfortable with the cloud. And we really want to bring customers to the cloud faster and faster because that's the place where we can do our best work and our most innovative work, getting you new features and new capabilities faster than ever before.

So that end user adoption, driving cloud acceleration is really the third reason we're excited about Yammer.

But as we got going with them, there was a fourth reason. They turned out to be a fun bunch of folks. Our team and their team are having a blast. We've had hack-a-thons both places, there's been a few drinks in between coding, people are brainstorming, there are white boards with big pictures and stack diagrams and so forth. The designers are getting together on end user features, and it's really been a ton of fun.

Adam Pisoni, the CTO of Yammer, and David Sacks, the CEO, are going to come out in a little bit, but I thought before I brought them out, I'd give you a video clip that's a little bit of the taste of the fun we've been having with the folks from Yammer. Let's take a look.

(Video segment: Yammer.)

JEFF TEPER: So please join me in welcoming David Sacks from Yammer. (Cheers, applause, music.)

DAVID SACKS: All right, it's great to be here and, frankly, it's great to be out of that chicken suit. I obviously didn't read the fine print too closely in the Yammer-Microsoft deal. It turns out that when Microsoft buys your company, there's a little-known chicken-suit provision in the contract. (Laughter.) But it's great to be here meeting all of you at the SharePoint Conference.

When we set out to create Yammer four years ago, we had a vision to change the way that we work. We noticed that there was a divide between the tools we were using at home and at work to communicate.

In our personal lives, we used sites like Facebook and Twitter, which were making to easier to communicate with more people than ever before. But at work, the tools really hadn't changed.

And so Yammer's mission was to bring social networking inside companies as a secure business solution. Frankly, when we first got started, there were a lot of skeptics. There were a lot of people who thought that this was a toy and couldn't really possibly make businesses productive. But we knew that the same thing had been said before about other consumer technologies that had come inside the enterprise like even email and IM. After all, just because your kids love to talk to their friends on the telephone, doesn't mean that the phone isn't also a great business tool.

And so four years later, it's become absolutely clear that social networking is the communications phenomenon of our time. And we all know there's a billion people now on Facebook. And just last week on the election day, over 30 million tweets were posted, about 300,000 tweets per second. So the adoption has just been incredible.

And the reasons for this is that social networking fills a unique need. You know, the telephone is great if you want to have sort of a one-on-one conversation, and email is great if you want to talk to one person or a few people. But social networking is the most efficient, many-to-many form of communication that we've ever invented. For the first time, it gives people a way to communicate inside of a broad community where people who it wasn't initially thought could be part of the conversation could find it and jump in and proactively seek out conversations.

And that's why we think that social networking will have such a huge impact on business collaboration as well. It gives us a new way to communicate that dramatically improves the flow of information inside the company. It really brings together people across departments, geographies, and levels inside of the company.

So now anybody in the company can essentially join in the conversation and benefit from information that previously was trapped in organizational silos.

Because of that, enterprise social networks really immediately struck a chord with employees. You know, employees want to connect in this way, they want to share ideas, solve problems, and move faster. And it's really thanks to them that they pulled Yammer into their organizations. And so today, over 200,000 organizations have Yammer networks, including 85 percent of the Fortune 500, including a lot of incredible companies now are customers like Tyco, Nationwide, Shell, Capgemini, Cargill, and Red Robin, and really the list just goes on and on. And Yammer today is being used in over 150 countries and 24 languages.

So it's now pretty clear, you know, four years after we started that social is the new default in business. Some recent surveys found that most businesses now are using social technologies and Forrester predicts this is going to be a $6 billion market in just a few years.

So analysts, the analyst community, and business leaders have really started to embrace this new technology. But, frankly, it's not just about numbers. It's about business impact. It's about real people transforming the way they work. And to talk more about that, I'd like to invite my co-founder, Adam Pisoni, the guy in the gorilla suit on stage to talk about it. Adam, welcome. (Cheers, applause, music.)

ADAM PISONI: Hello. Hello, I'm super glad to be here, it's my first SharePoint Conference. (Cheers, applause.) I actually did read the fine print of the contract, but I already had my two gorilla suits, so it wasn't a big deal to me.

You know, we are in a period right now of unprecedented change and disruption, where companies are expected to adapt in real time to the changing needs of their customers and employees. And expectations of IT are changing as well, from just managing technology to anticipating change and accelerating the business.

So what does this have to do with social? Well, I believe social is to blame for this change. Now, at the basic level, social connects people. And when people connect, they're exposed to new ideas and new information. And when that happens, they change. They change the way they think, they change the way they act, and they change their expectations. And all of this may be a bit overwhelming. We're all dealing with this massive acceleration of change.

Well, the good news is that while social has been the catalyst for change, it's also the solution to how we deal with this new reality. Social helps companies in three fundamental ways: First of all, it connects people to information they need to make more informed decisions. By doing this and giving everybody a voice, it empowers the people closest to a problem to find the best solution.

Second, once people are more informed, social helps people organize into groups so that they can work on problems together and collaborate. Thirdly, once employees are more connected and empowered, they become more engaged. And they're able to exceed the limits of their job descriptions to fulfill the mission of the company. It's the difference between saying your job in customer support is just to answer questions versus saying our mission is to provide the best-possible customer service regardless of our role or our rank. And when your company has fully embraced social, I think you'll find you're in a much better position to deal with change.

But in order for social to really make an impact, we need two things: First, it has to be more than just a destination. It has to become a natural way for us to work. Meaning, it has to be seamlessly woven into all of the tools and the fabric of all the applications we work in today. People in sales and marketing and engineering should all be able to work together on a problem, regardless of where they are, regardless of whether they're in Outlook of Dynamics or Lync or any other application.

Second, it needs to be something we can secure and manage. All of the benefits we get from open communications, from self-organization, they all go away if it's not part of a platform that IT can rely on.

So where do people spend most of their time? In Office. And that's why we were so excited to join Microsoft. We wanted to make sure everybody had access to social, and that means putting it in the tools that people use. And we realize with our social expertise and Microsoft's depth in the enterprise, we were in the best position to fundamentally change the way people work forever.

You see, I believe that the most interesting innovations to come in the coming years will be at the intersection of social and all of the other applications we use. That's why I'm so excited to show you some of the integrations we're working on.

Now, I'm going to show you three things. First, I'm going to show you what you can do today to integrate Yammer and SharePoint. Second, I'm going to show you some of the deeper connections that we're working on for the future. And third, I want to give you sneak peek at our Windows 8 app that we're building.

So a few weeks ago, Yammer introduced the enterprise graph. It's a way to seamlessly connect data, people, and conversations across all of your business applications. The goal is to create a universal social layer that can span all of the applications you're in so that conversations don't become siloed and fragmented. And it uses a technology called Open Graph.

So what I want to show you is how using new SharePoint and Yammer that exists today, we used Open Graph to integrate the two.

So what I've got here is the new SharePoint. I'm on a team site for the launch of a new product, you can see our schedule. And what I want to do is talk about a document in Yammer.

So I'm going to click on documents. I want to share this marketing analysis document. You'll notice we've got a new button, "post to Yammer." Now, what this button is really doing is creating a activity story in Yammer which lets me see and talk about and socialize these documents. Here it's just shown up -- it did show up -- we can see that the documents have shown up even in Yammer search. And so now we're searching documents that are not only in Yammer, but are documents that were shared from SharePoint.

I can click in that document and go to a page in Yammer for this object. Now, even though what we're showing is a file here, this can be any object from SharePoint or any other application in the enterprise. We've got conversations about it, we've got recent activity, we've got related content on it, and we've got all of the followers. You could even embed these conversations and this activity back into other applications.

So the next thing, so that's something that you could today with Yammer and SharePoint. Next, I want to show you something we're working on. Here, now most of you store most of your files in SharePoint. And yet in Yammer, you can already post and talk about files in Yammer. What we want to do is make it really easy to share and talk about the files that are in SharePoint today, even easier than what I just showed you.

So here I am in a group in Yammer. I'm going to go ahead and click add a document. And as you can see, we've got a new option. We're trying to select a file from SkyDrive Pro. Bam, this is a set of files from SkyDrive. I can create a new message. Here it is. Boom.

Now, this file is not in Yammer. This file is still in SharePoint, and yet I can click preview and get a full-fidelity preview from within Yammer. Better yet, I can go to the file, again through the preview, see related content again, see the conversation, see versions, see the followers. I can even click to edit the document right in line.

But even more amazing, now we've got these files in Yammer. Let's say I'm another person. And what I want to do, you know, using SkyDrive Pro and I'm synching all my team sites to my desktop. Well, here's that same file on my desktop. I can double-click it, open it in Word, and now I am in a collaborative editing session from my desktop in the World client with somebody who's also editing the document online in Yammer.

Now, this is just a preview of some of the deeper integrations we're working on. We're, obviously, working on many, many more that will be even more interesting.

And the last thing I want to show you is the Windows 8 application. We want to make sure that your social experience can be available anywhere in context, so you can access it on whatever device you want in a manner that's suited for that device.

So we're working together to create a native Windows 8 app. So you see I've got my Surface here. Everybody's got their Surface? Everybody? No? OK. It's like two people have it. (Laughter.) I know you all have it, I know you're just being shy.

You can see we've got our Yammer tile here. Click on Yammer. And what we're looking at is a Yammer feed rendered in the Modern UI, totally native, super smooth. Click in, I can see replies and messages. Obviously, I can reply. Let me post new messages. So that you can take your social conversations wherever you are. Wherever you go.

So I've shown you a couple things. I've shown you what you can do today with SharePoint and Yammer. I've shown you a preview of the kinds of deeper integrations we're working on, but there's much more to come. And I've given you a sneak peek at the Windows 8 app we're working on.

But I'm sure what you're really interested in is the road map. So I'd like to bring Jeff back on stage to give you the road map. (Cheers, applause.)

JEFF TEPER: Thanks, Adam. You looked great in the gorilla suit, by the way. Thank you and David so much for doing that. It turns out people will still come to work the day after you dress them up. Pretty thankful about that, because really David and Adam are fantastic, the team is fantastic, and we're very excited to have a lot of them here this week.

So, let's talk about integration and packaging, get into the specifics. We're moving quickly, as Adam showed you. In the cloud, and Yammer is a cloud service, it's not a server, in the cloud we can do things more quickly, and so you'll see those connections increase over time. What we're trying to do is give you Yammer inside SharePoint, and SharePoint inside Yammer, so we can really supercharge enterprise social networking to help your organization be a lot more effective in the years to come.

So, let's talk about the three-stage approach. First is, in addition to the Web part support that Yammer has had for a while, the open graph support that Adam talked about and that Yammer introduced last week really enables new levels of integration across applications, including SharePoint as he just showed. We're also going to do a lot more integration with things like Dynamics. So, you can see customer calls or expense reports within Yammer as well. And so that's available now.

We're going to start adding deeper connections between the two of them. The next three big things we're focused on are integrating feeds, integrating documents. Adam showed you a little bit of a preview of the design for that, and integrating identity to make sure single sign on and directory synchronization across Yammer and SharePoint and Office 365 is more seamless than it is today.

And then, beyond that, the teams are already working on some very cool ideas, beyond Yammer and SharePoint, to Outlook and Exchange, to Skype and Lync, about how conversations will work in the future across devices, across organizations. You will see some really, really innovating stuff from us here, and we're going to work pretty hard so it comes faster than you might expect from us on that sort of new level of communication and collaboration empowered by social technologies. So, stay tuned.

I thought I would next talk about packaging, since everybody wants to know a little more detail about that. Our goal, just as we want to be bold on the product, is to be very bold on the delivery. We want everybody to have access to the best enterprise social networking tools. So, first, we'll continue to have a standalone Yammer offering. We have a free offering. We encourage everybody to try it out in the cloud. You can be up and running in seconds. It's great. We also have a paid offering with some more features and manageability. We'll continue to have that paid offering. We are going to significantly lower the price of that, and the details of that are online, so it's very, very low cost to get enterprise social networking in the cloud.

The second step is we're going to include Yammer in SharePoint Online at no extra cost. Every SharePoint Online customer will get Yammer for free. If you want to start with SharePoint alone, that's great; if you want to start with Yammer alone, that's great; if you want to use them together. We really know how within organizations this will just simplify decision-making and budgeting knowing that you can just get those capabilities. And as we bring them together in interesting ways so the seams between them disappear, you don't have to think about that, you can think of Yammer and SharePoint as an integrated offering for the same price. And obviously since SharePoint is in Yammer, I'm sorry, Yammer is included in the SharePoint license, Yammer will be included as part of all the Office 365 SKUs starting with E1 through E4, for those of you keeping track of our pricing scorecard. So, again, if you have an Office 365 license early next year you'll start to get access to Yammer as part of that license, and you'll see a lot more integration between them.

So, we're really, really excited about the product road map here, the packaging to make social more broadly available, it's really fun to see the work that's already been done with the two teams, and we've got a lot more to come. But I thought we'd wrap up this section by showing you a video of a customer, Nationwide Insurance, so you can hear in their words some of the excitement about the work between Yammer and SharePoint. So, let's take a look.

(Video segment.)

Great. And thanks Nationwide for supporting us on that.

So, we've talked about the new experiences that we're bringing to SharePoint with mobile, with social, with Yammer, and the new Web UI. Now let's switch gears to the second of the sections, which is the new innovative capabilities, the meat of SharePoint, if you will. The thing that has really made SharePoint unique in the industry is the breadth of capabilities, and how we brought them together. In the early days, how we took document management and search and made one plus one equals three out of that. How we've added business intelligence, how we've added more advanced workflow capabilities, and lots, lots more. There's a lot of detail on that. We've got about 270 sessions, as we've talked about, to go into each area.

I know from talking to folks here, there are some folks here who their primary focus is just in one particular area like Web content management or enterprise search. That's great. We have a lot of new capabilities for you, a lot of sessions to cover those. We're not going to go through them all in a ton of detail right here, but I thought what I would do is bring up a long time favorite to the SharePoint conference to give you a quick tour of some of the new deep capabilities in SharePoint. Let me introduce Richard Riley.

RICHARD RILEY: OKOK, hi. Hello. Jeff kicked of the session with a demo with some of the great social and sharing advances we've made to SharePoint. Now I'm going to spend the next few minutes walking through some of the cool new enterprise features. Specifically, we're going to take a look at search, Web publishing, and enterprise content management. And we're going to start off with search.

Now, the search folks have been extremely busy over the past three years unifying the FAST and SharePoint cores, we now have a single search engine in SharePoint 2013. And then they've built an intuitive, personal and actionable interface on top of that. To give you an example of where that starts, it really starts at the query box. I've just typed in a query for marketing. You can see we have the normal kind of type-ahead capabilities that you're all probably familiar with. But at the bottom we get these blue links. Now what these are called are personal re-find links. So, how many times have you searched for something and then gone back and searched for it a bunch of times more, because you couldn't remember or you needed to go find it again. These links direct you straight back to the result that you found the first time without having to go through the results page. So, they save a ton of time, and I'm telling you they're super useful when you keep forgetting stuff and you need to go back into search and find that thing that you just lost.

So, we click through into the results page itself. Let me give you a quick tour of what we've done here. We've completely revamped the look and feel. We've got visual refiners out of the box on the left-hand side. We also have the hover card that you saw Jeff talk about earlier. Now, these things show up in a lot of places across SharePoint. But what search does is something quite special. When an indexer goes and indexes the content, in this case it's a PowerPoint, it actually looks inside the document and picks out areas of the content that it thinks are going to important, like paragraph headings or slide titles. And it adds them as deep links into the hover card. So, right from the results page here, I can click through for example onto making choices, which is a slide right within that deck. And I've gone from search to click to the exact slide that I wanted in literally three clicks. And this is a pretty cool capability I think we've added into the search engine. (Applause.)

Now, the last thing on the search page that I want to show you is this area at the top, and this is called a results bar. And what we're doing here is trying to be smart with the query that people put in and actually trying to understand it.

So, I've done a search for marketing deck and behind the scenes we have a set of query rules and what these do is they translate the English that you put in, or the language that you put in, into something that the search engine understands a little bit more. So, in this case it's bringing back results that don't include marketing and the word marketing and the word deck. It's bringing back PowerPoints, because it understands deck means PowerPoint.

This thing machine-learns, as well, and it can prioritize different rules. You can add your own rules. You can use the query logs to add new rules. And it makes it really easy to create a very personal experience, and a very relevant experience to your end users using these query rules. So, we've made the user experience for search more intuitive, personal, and actionable, but that's really only half the story for search. It actually plays a foundational role in SharePoint 2013. For example, it's the engine behind Web publishing and e-discovery. So, we're going to take a look at Web publishing next.

Now, our mission with Web publishing was to make it easier than ever for you to create beautiful, adaptive, and personalized experiences. And we really have made a bunch of changes under the hood with what we've done with Web publishing. The first one is pretty significant. You can now use any design tool that you wish to write Web pages for SharePoint. You don't have to use SharePoint designer anymore to create master pages. So, I think it's a pretty cool addition.

So, you can go and use any design tool you want. Once you've created your design assets you can upload them into SharePoint through a new capability called the design manager. Click down here you'll see we've got a link that says "upload design files." As you upload your HTML SharePoint will in the background go take your HTML, convert into a master page that it can render, and the job is done, which is great.

So, I'm sure you're thinking that's cool. I don't have to use SharePoint designer anymore, but how the heck do I now get the SharePoint controls into a Web page that I literally just built in Notepad? Well, we have a cool tool for you there, and it's called the Snippet Gallery. So, let me go jump into the Snippet Gallery and what I'm going to do is add a search box to this page along the top here using Dreamweaver and a snippet out of the snippet gallery. So, to get to the snippet gallery we go into the master pages page and to the link on the top here, snippets. And you see across the top we have a broad range of snippets that I can go insert into my HTML, so insert SharePoint control into it.

In this case I'm just going to click the SharePoint search box. We get a preview of what that looks like. I can change the appearance and a bunch of other properties of that control that I'm about to insert. When I'm done I can hit copy to clipboard. I'll just throw up this so you can see there's no smoke and mirrors going on here, and drag that to the side. We'll pull up Dreamweaver that's got that page loaded. I'm literally just going to paste my snippet into Dreamweaver. I'm going to press the right key and I'm going to hit save.

That's going to save that page back to SharePoint. It's going to convert it into a master page. I'm going to blame that on Dreamweaver. That is Dreamweaver. If there's anybody from Adobe in the audience, I'm going to find you later. It always works the second time. OK. Save, that's done. Seriously, it is Dreamweaver. I'm going to hit refresh, there goes a search box on the page. (Applause.)

So, that's the design side at a very, very high level. And what have we done about actually getting content onto the page? Well, we've split the page layouts from the content in this release and we've sandwiched search slap-bang in the middle. And this makes it very, very easy to build dynamic experiences, because you've got search driving the experience on the front end.

So, for example, if I scroll down to the page at the bottom, here you can see a product list at the bottom of this page, and this is driven by a search query and it's actually used in a new recommendations capability in SharePoint. So, the kind of thing you see on Amazon we now have that capability built into SharePoint. So, just to prove that point, let me put this page into edit mode and I'll show you what that actually looks like. Hit page, and we'll scroll down, and you can see we have a new Web part called Content Search, if I just edit this Web part and zip back to the top and hit change query, you see a brand new dialogue that gives you a ton of control. I'm not going to go through what this thing is doing right now. But, you can see all of that content is being pulled back from the SharePoint product catalogue using a query.

So, this is pretty cool stuff. You really can design some very, very interactive, very engaging sites by divorcing the content from the page layout and using search to drive that experience. (Applause.) It is pretty cool.

The last point I wanted to make here is this demo is part of an Internet site, but all of the design and personalization capabilities are equally at home inside the firewall. You can use this stuff to completely build a very interactive intranet, for example. And talking about the firewall, let's slip over to E-Discovery, which also has search right at the core of it.

E-Discovery, it's not the most exciting thing to demo to one person, never mind 10,000 people standing in front of me or sitting in front of me. But, you know what, lawyers cost money. And what we do here should keep more of that money in your pocket and less in theirs. So, anyway, a quick tour of the E-Discovery experience and it starts off in the legal discovery center where we've got a set of cases on the left-hand side of the screen. I'll drill into the Northwind (ph) case, and E-Discovery and SharePoint consist of two components. There's the discovery set and these are things you use to identify the content that you want to put on hold. And then there's queries, and you use those queries to refine those discovery sets down to something you'd export and then hand off to your lawyers to go review.

So, if we drill into the Northwind E-Discovery set, I just wanted to point out a couple of quick things here. The first one is that we don't just do E-Discovery across SharePoint in 2013, we actually do discovery across the suite. So you can do E-Discovery across SharePoint, across Exchange, across Lync, even across file shares and put all of those things on hold, which is a huge benefit. You've got one place to go and it's called SharePoint. And that's the place that you run your E-Discovery activities from.

You can see we've got a filter here. And down at the bottom the other thing I want to point out here is the enable in-place hold. When you've got that filter set to where you want it, you enable the in-place hold and that holds the content in place just like it says. It doesn't make a copy. We only make a copy when the user changes the content that gets held.

So, that means they notice nothing. It doesn't change their product. It doesn't change their workflow at all. They just carry on working. You've got that data held. If it changes we write a copy.

So, let's just draw it back up and I'll show you what the query looks like. Let me take a little bit of a drink. So, in this you can see that we've refined the query. We can use operators like near and wildcard, we scroll down you can get a review a preview of the content you've got, in this case, in SharePoint and Exchange. And when you're done you can go hit the export and that will export this content that you've got on hold that your queried down, in EDRM XML format, which is industry standard, which you can then hand off to your lawyers, and they can go do their work.

So, in place holds, covered with a very granular query capability, will keep people productive and it will save you money and reduce your risk. The last thing I want to show is another area where we've worked very closely with the Exchange team, and it's a feature called Site Mailbox. I'm going to drop into Outlook to give you this demo.

So, every project, big or small, invariably includes email and documents that a group of people need to work together on, and Site Mailbox is the feature we've built to bring SharePoint and Exchange together to enable just that. So, I'm in Outlook, you can see down on the bottom left-hand corner we have a mailbox called SharePoint Conference. It's got a mailbox, it works like a mailbox, it looks like a mailbox, it smells like a mailbox. You can send mail to it. We also have this folder called documents. Now, this is actually rendering document data that's in a document library from SharePoint. So, we're bringing SharePoint into Outlook. The content stays in SharePoint. We don't do any sync. It stays in SharePoint, the email stays in Outlook. So, all your policy and compliance and that kind of stuff works perfectly. If you add someone to the SharePoint site that this is tied to, it automatically adds them as send us capability for their email so that you can bring these two worlds much closer together.

Now, if I wanted to get content into this library, literally all I need to do is go and find an email. In this case I'm just going to drag this Word document, SPC Session Abstracts document, let's drag it over, drop it into documents and let go. Hit that, you see that that's appeared in this list. Now, let's go into SharePoint and take a look at what SharePoint is doing. I open the Web browser. You can see the team site is the back end of this Site Mailbox experience. If you drop into the documents library, there on the bottom you see SB Session Abstracts. It's just landed in SharePoint. So, bringing SharePoint and Exchange together. (Applause.) I think it's going to be a really great feature to keep teams and their content in sync. And it's another really great example of where we're delivering great capabilities across the suite.

So, that was just a small taste of the innovation in 2013. We've done a ton of work in this release, and I really do hope you enjoy the rest of the week learning all about it. Thank you very, very much for listening.

(Applause.)

JEFF TEPER: Thanks, Richard.

As Richard described, that's just a small set of what we've done this round. I showed you some of the sharing and social work earlier. This is the release in search where we took the FAST technology as well as learnings from Microsoft Research and Bing and integrated that search technology from everything from E-Discovery to building dynamic websites to even simple inline search like I showed you earlier. So, FAST fully integrated across the suite.

Business intelligence, this is actually something we cut last night. We have some very cool PowerPivot, PowerView stuff with Excel and SharePoint. Didn't have time to show it. You should go to those sessions, very, very cool innovative BI work.

Enterprise content management, a bunch of things around compliance and E-Discovery. You don't have to spend a bunch of money on a different system where you have to pull data out of Exchange and SharePoint, you can do policy, archiving, E-Discovery right in place.

Task management, I showed a little taste of that at the beginning. That scales all the way up to high-end project management with Microsoft Project, Project Server and Project Online. (Applause.) And then, finally   yeah, the Project Team is probably in the front row. That's all you guys could muster? Anyway, usually they bring air horns to the Microsoft company meeting so that we hear them in the upper deck.

Anyway, the last thing around Web content management and Web publishing to build dynamic sites that tailor themselves across devices.

So really a ton of depth, and again this is what makes SharePoint unique that you've got a single platform that at much less cost, much greater user productivity, you can use across a wide range of scenarios.

Next I'm going to talk about some of the work we've done in architecture and work supporting IT. As I mentioned early on, this is a big release for us in the cloud. That journey actually started several years ago, even in the very beginning of SharePoint when the first versions of SharePoint, dating back even to Front Page, were hosted by a bunch of ISPs. So, we've been at this for a while.

But scaling up to hundreds of millions of users, and multiple datacenters around the world required a huge fundamental investment on our part. And so thousands of people in the SharePoint team, various other Office teams, the Azure team, the SQL team, have been working for several years on building out datacenters, and topology management, and monitoring, and so forth. A whole set of big investments to run a large enterprise cloud service. That demo I did earlier that was in our Amsterdam datacenter, we could failover in a matter of minutes to our Dublin datacenter all our European traffic, for example, if there was an incident in Amsterdam. This is actually a real, not hypothetical, situation. We had a number of companies who were running servers on the East Coast themselves when Hurricane Sandy hit, and they didn't have a disaster recovery plan. Immediately they called us up afterwards and said, gosh, could we run the servers for them in Office 365, because they knew we had multiple redundant datacenters.

So, really the key thing that I wanted to get across is that while you can choose to run your own servers, we have the best experience in Office 365, economically, performance, user experience, agility. We'll be adding features to that a lot more quickly than they'll show up in the standalone server offering. We'll still obviously continue to have a server release, but we really recommend moving to the cloud for the best experience overall.

But we understand not everybody is there yet, or there yet today, and this will take time, or if people want to run their own servers in some cases, that's great. We have the best server release we've ever done in SharePoint 2013. And the thing you should take away from our cloud focus is all that expertise we've learned about optimizing the system and deployment monitoring we've put into the server product and put into the deployment guidance. So, some of the most fun sessions this week will be the details about how we run Office 365. So, even if you're running your own servers, you can learn from us about how to do that the best way possible.

So to show you some of our architectural and IT investments, let me bring up Michal Gideoni.

MICHAL GIDEONI: Thanks, Jeff.

In the next two minutes, I would like to cover some of the investment that we've made on the IT side. I will talk about three areas. First, the improvements we've made to upgrade and migration. Second, what we've done with performance. And finally I'll talk about some of the core infrastructure work we've done to reduce COGS and optimize your hardware investments.

So, let's start by taking a look at the upgrade and migration experience. We've completely redefined the upgrade experience in SharePoint 2013. It can now move to 2013 infrastructure right away without having to upgrade every single site collection. This is beyond what we've done with visual upgrade in 2010 as your site collections are truly running in a 2010 mode. So, even your custom solutions will continue to work exactly as they did in 2010.

You can see here two SharePoint environments that look almost identical. One is running SharePoint 2010 and the other is running on a SharePoint 2013 infrastructure but looks and behaves exactly like SharePoint 2010. This isn't smoke and mirrors. This is truly 2010, the features, the visuals, the capabilities. In fact, I only know that this is a 2013 environment because of the pink banner at the top.

What you can see is that when IT upgraded the farm nothing actually changed, just the database schema was upgraded. Users can go into the site, continue to do everything exactly as they had before, and upgrade whenever they're ready. They have access to site collection health checks that they can run at any time to detect issues and find solutions to resolve them.

So, now I'll go here to Site Actions, Site Settings, scroll all the way down and go to the Health Checks and see how that works. It's going to start the checks, and we're going to get a list of things, some that went well and some that didn't go so well. And the Health Check is going to suggest some ways to resolve those problems.

So, we said that users can move to SharePoint 2013 whenever they're ready, but you really do want to move your sites to 2013 because then you can benefit from all of the infrastructure benefits that SharePoint 2013 brings. So, let's go ahead and I'll upgrade the Site Collection.

So, I'm going to go back here to Site Settings, and go to Site Collection Upgrade, and we're going to upgrade this site collection. I'm ready to do that. And you're going to see that it's going to be a whole lot faster as the schema upgrade already took place when we upgraded the infrastructure.

So, now that we've upgraded, let's talk about some of the performance improvements that are available with SharePoint 2013. We've made a number of improvements across both client and the server side in SharePoint 2013. For example, we make 40 percent more efficient use of bandwidth. A key investment here is smooth transitions which downloads only the difference between the source and the destination page instead of reloading the entire page.

We've optimized image compression by 4X. For example, the ribbon icons went down from 400 kilobytes in 2010 to 100 kilobytes in 2013, and that's because of optimized compression. We make more efficient use of Internet Explorer, of native SQL capabilities and optimized store procedures resulting in 50 percent reduction in server- side latency. So, this investment leads to better responsiveness and more efficient use of your network.

OK, so we talked about how we redefined the upgrade experience, and the performance improvements. Let's now talk about storage, as we all know storage is an important piece of your deployment. What you can see on screen now is 10,000 users collaborating in both SharePoint 2010 and in a SharePoint 2013 environment. That's pretty much each and every one of you here. You can see on the screen that the 2010 database is growing at a much rapid pace. The story behind this is that in 2010, when you create a version, you actually create a copy of the file. So, if you have a 10 meg file and you make a 1 meg change, the version will be 11 megabytes. However, in 2013, we've made the I/O much more efficient. So, now we only use the delta of the version. And so, instead of 11 megs, it's only going to be 1 meg. That's pretty great. (Cheers and applause.) And so this is another example where we're taking the experiences from running Office 365 in massive datacenters and improved SharePoint 2013, so you save on hardware efficiencies.

So, in summary, I showed you how our experience building from the cloud app is accruing to improvements I upgrades, performance and infrastructure both on-prem and in the cloud. So, wherever you deploy, the benefits are there for you.

Thank you. (Applause.)

JEFF TEPER: Thanks, Michal.

Again, the infrastructure work we've done, administrative tools work we've done, a lot of depth this week that we'll go into in various sessions, a huge focus. I know we're very much leading with the cloud because we want to be very clear on our strategy and the best experience, but a huge focus in helping you, if you choose to run your own servers.

So, we're now in the home stretch. Let me talk about building apps. Some of you might know when we did a preview of this release of SharePoint a few months ago, I wrote a blog post where one of the paragraphs I led with: Use SharePoint out of box. And I got a lot of email on that. There were some discussions in Yammer groups, discussions in blogs on the Web.

Some of those mails were from developers and said: Jeff, you don't love us developers anymore. We got you here. What's the deal? Being developers, they were less polite than that, but you get the idea.

And, you know, it's not true. We love developers. And the next bit here is all about developers. We've always tried in SharePoint to do two things, one is revolutionize how people work together so they are more effective collaborating inside and outside their organization, but the second thing is we've tried to come up with breakthroughs in how to build and integrate applications from the original Web part model through things like Open Graph that you saw from Yammer. We're really excited about that approach to integrating applications into collaborative experiences.

So, we have a ton of stuff in this release for Web designers and developers. We do lead with "out of box" because we think for a bunch of team sites to get going really quickly, the out of box experience is just great. We really don't want to encourage people to add cost and complexity to simple collaboration. But we've got a full-fledged development model that we're going to cover in the next section here.

In the history of SharePoint, we've had a symbiotic relationship with ASP.net team around that development model to if you knew ASP.net, you could learn to build SharePoint apps. You could integrate things from ASP.net into SharePoint. It was a great model, and we continue to support it in the on-premise release.

But in the cloud world it doesn't have the agility for us to move more quickly updating SharePoint technologies, or the agility for you to update your applications.

So, we worked on a new cloud application model across Microsoft. This was with the Visual Studio team, the workflow team, the Azure team, the SQL team, the SharePoint team on a way to build applications so millions of apps are running in Office 365 connected to all sorts of different back ends and we can be updating SharePoint every quarter, every month, sometimes every day and not have those applications break, or impact SharePoint and Office 365.

So, again, this is a model that was designed for the cloud, but obviously very appealing on premises, as well, as you want to plug new things into SharePoint and update those front ends and back ends independently. So, we have a pretty simple model in how we talk about this, on how we've aligned across the company. Azure provides the underlying platform. SharePoint provides in Office 365 the collaboration and productivity experience, and the Dynamics team provides business solutions.

Now, it's an open model using Web standards, HTTP, OData, OAuth, REST, et cetera. So, you can build front ends in things like iOS, or back ends in other platforms like Linux and connect them. But, we've really focused on the greatest agility, end-to-end across the Microsoft tier. And I am really very excited, because we've been working with the .NET team for quite a long time in the history of SharePoint on our development model. It's actually the first SharePoint conference we've had. Scott Guthrie joined us and so, I'm very pleased to introduce Scott who is going to talk through the new development model across Microsoft for building apps in SharePoint.

Let's introduce Scott.

SCOTT GUTHRIE: Thanks, Jeff. It's great to be here. SharePoint is a mature developer platform with a huge ecosystem and more than 700,000 developers. And with this release of SharePoint 2013 and Office 365, we're looking to take this to the next level, and enable even more capabilities and opportunities. With this release we're introducing a new cloud app model for SharePoint. This model is additive to the full trust solutions you write today and the new model is built around three core tenets. The first is we want to simplify the development with SharePoint, and make it consistent across both the SharePoint on-premise and the SharePoint running inside Office 365.

Second, we want to make the execution model loosely coupled, and enable you to build apps and write code that can run outside of the core SharePoint service. This makes it easier for you to deploy apps and avoid having to worry about breaking SharePoint or impacting the performance of SharePoint with those apps, or have to worry about compatibility issues when you upgrade. And third, we're implementing this loosely coupled model using open Web standards, like HTML, OAuth, JSON, and REST APIs. And this enables you to reuse your skills and tools, and easily integrate SharePoint within existing Web and mobile applications.

And what we do here this morning is kind of show you how easy it is to take advantage of and some of the cool things you can build with it. So, let's go ahead and move to our demo. We'll go ahead and project our demo, as well, please. Cool. So, what you're seeing here is a SharePoint site that is hosted on Office 365 and it's some sort of simple site here and I've got an incidence list that's created within it where you can see a bunch of incidence lists, or incidence from an organization that I want to go ahead and correct and take care of. And this is just using the built-in UI here, as you can see.

What I want to do now is take care of. And this is just using the built-in UI here, as you can see. What I want to do now is take advantage of this new cloud app model to build a richer Web experience around it. And to do that I'm going to go into Visual Studio and create a new project. So, what you're seeing here is Visual Studio 2012 and I'm going to start by just saying file, new project, and selecting a new app for SharePoint 2013 project template. I can give this a name, hit OK. And this is now going to go ahead and create for me a new SharePoint project.

It's pointing off to that site that's hosted inside Office 365 in the cloud. And you'll notice there's one extra option, we're going to come back and explain this a little bit more later on in the demo, but it gives me an option of asking me how do I want to host this project. And I can choose the auto-hosted model, which is the default, or it's called provider hosted. Again, we'll explain that a little bit more a little bit later on in the demo.

I'm just going to go ahead and hit finish and this is now going to create for me a solution inside Visual Studio, with two projects within it. The first one is a manifest project that has an XML file that contains settings about my SharePoint app. And the second project is a standard ASP.net Web application project.

One of the cool things about this loosely coupled model that we're introducing is the ability now for you to take advantage of all the features and capabilities that are in .NET, including the new version of .NET 4.5. And so in this case here I have a Web application project that's built using Web forms. I can also now take advantage and build SharePoint apps, using ASP.net, MPC, Web API, and all the cool new libraries that we have.

And we're going to go ahead now and start taking advantage of those. And so I'm going to begin with here, because we're going to build kind of a richer incident list UI by just adding standard ASP.net list view control into my HTML page. And this is just going to sort of format incident data that I get back from the cloud into kind of a more custom UI. I can then go to my code behind file and this is the standard code behind template that I get when I create one of these SharePoint apps. And all I'm going to do here is just write a little bit of code that's going to connect to my SharePoint list in the cloud, retrieve it, and then you'll notice down here I'm just data binding it to that ASP.net list view.

That's all the code I need to write in my view, as well as my code behind, in order to format this data. The one last thing that I am going to do is just open up a manifest file for my project and I'm going to basically indicate what this app needs in terms of from a permission perspective to run. And specifically I'm just going to request read permissions from my list data inside SharePoint, and that's it.

Now, to run it I'm just going to hit F5 and this is going to start   this is the very first time we've run this app. It's going to connect out to Office 365 in the cloud and start registering this app locally. And if we switch to the slides, I'd like to walk through kind of what's happening here. This is the first one time kind of step. And what I'm simply doing here is I'm going to run this application not in the cloud, not on a remote server, but actually on my local dev machine here. And going to just use IIS Express that comes with Visual Studio in order to do it.

What I'm doing as part of this process, the very first time, though, is I'm uploading the manifest into Office 365 and registering my application. And this basically lets SharePoint know   I've got an app here locally, I'm connecting to. And it's going to set up a secure OAuth relationship so that my application can now communicate with Office 365 and use it to retrieve data, enable single sign-on, and coordinate across the two instances. This loosely coupled model means that I can have code now running both on my dev machine, that's integrated with all my data and other capabilities up in the cloud.

So, we go back now to our dev machine. You'll see we've finished here. Now, we're actually back on the SharePoint site and it said, OK, do you want to trust this app? I do. And I'm going to give it access to my incidence data. So, I'll just go ahead and hit trust it. And this is now going to redirect me back. It should have redirected me back. That must have been a Dreamweaver bug. And it redirected   see, it was. It redirected me back and you can see here   sorry, anyone from the Dreamweaver team, you can see here sort of simple incident data here now displayed on this list. And so it's kind of just basic kind of Hello World formatting. What's cool here to notice, though, as we zoom in is it says local host. And that's because this app here, and all this UI that's being rendered is being rendered off my dev machine. But, again, I'm retrieving that, using a secure OAuth relationship with Office 365, from SharePoint in the cloud.

Now, that's sort of Hello World. Let's make this a little bit richer. I'm going to go into my UI and what I'd like to do is just have it kind of integrate and look a little bit more consistent with the rest of my SharePoint site. And so I'm just going to add in here a little bit of jQuery, so it's going to pull down the theme from my SharePoint site and have this local app use the same. I'm going to go ahead and just provide a chrome view here. This is just a div with some styling on it to display it.

And we'll hit F5 again. And this time it's going to be a little bit faster, because it doesn't need to re-register with Office 365. Instead it's just going to do the redirect back to me. And you can see now the same app here. We just made the change. I've now picked up the consistent look and feel and navigation structure from the rest of my site and I now have kind of a consistent chrome UI at the top there. And that kind of, make a change, hit F5, see it live, that kind of rapid experience is now what's enabled as part of this loosely coupled model. And the beauty is here I'm running this app and debugging it all locally on my dev machine.

So, this is kind of a simple app. Assume that we're going to make it richer. And we could obviously make it a lot richer and add more capabilities. What I'm going to do here just to round out the auto-hosting model, though, is just kind of walk through   assuming we made it a lot richer, how I can deploy this app now into the public cloud and allow other users besides my local machine actually hit it. And I can package up this app and I can hand it off to an administrator to do that, or now within Visual Studio I can also go ahead and click this deploy link.

And when I do that I'm going to go ahead now and connect to Office 365 and you can see again some steps there where it's basically pooling that information, and once it basically retracts that app it's going to start the installation process and be, again, uploading. And let's go ahead now and switch to our slides and talk a little bit about what it's doing as part of this process. So, we can switch to the slides there. Cool.

So, what's it doing? So, basically as part of this process we're going to be doing a couple of things. We're taking advantage of a model here that we call auto-hosted and in the auto-hosted model we can basically take advantage of this cool capability that we're introducing with SharePoint, which allows us to upload an application to the SharePoint service running in Office 365 and enable SharePoint to host it on our behalf, using Windows Azure.

This is a really cool capability that we're introducing that offers up a ton of capabilities and power as part of it. And one of the reasons why it's powerful is I don't, as a user, have to worry about deploying this app myself, or as a developer. SharePoint takes care of it for me, and I'm leveraging the SharePoint service, and I'm leveraging Windows Azure in order to do it. And so basically as part of this deployment process all I'm doing is uploading now both the manifest as well as the Web application, which visual studio is going to zip up and upload into SharePoint for me. SharePoint is then going to take that application and instead of running it in the SharePoint service it's instead talking to Windows Azure, and it's going to automatically provision that app on my behalf, inside the Windows Azure cloud.

And so we'll set up the site, set up all the appropriate security permissions and wire up an OAuth connection, again, between Office 365, and between an app that's been hosted inside Windows Azure. I don't have to do any of that myself. It's all automatically handled by the system. And the beauty is at the end of it I basically have an application now that I can go ahead and run and deploy without having to buy a datacenter, pay for a datacenter, or even have to configure anything myself. So, really powerful, it offers up just a ton of capabilities here that we can take advantage of.

So, let me just ahead here and check. I'm going to switch over here to my backup here, and you can see this is a version of the app that's already deployed that I can take advantage of. And I'm going to just go ahead and say, incidence, but trust it, and what this is doing now is as a user in Office 365, I just deployed using Visual Studio to that instance there and I then clicked on Office 365, redirected, and this app is now running on the Web. It looks just like my dev machine, but here's the cool thing is if you zoom in and look at the URL, you'll notice this is no longer running on my dev machine, instead this is actually running off of the Office 365 apps domain. It's running in Windows Azure, in the cloud, connected with SharePoint, all the security is wired up for me. I didn't have to do anything. All this is built in and provided by the system. (Applause.)

So, the cool thing is that is literally how easy it is in order to actually build and deploy apps. So, we literally, from scratch, create a new project, built it, debugged it, then uploaded it and now it's running in the cloud. And I have, again, full power to use any of the features in .NET, in Visual Studio, and I can integrate deeply as part of my SharePoint experience.

Now, we also support   this is a great in terms of from the east of use perspective, we also support with the new SharePoint cloud app model a model we call provider hosted. Let's switch back to the slides and talk a little bit about that. So, the beauty about the auto-hosted model is I don't have to worry about hosting at all. The system handles it all for me. I don't have to think about any of that. The nice thing about the provider-based model, though, is if I want to have the power to actually host the app myself, so I can take full advantage from my hosted environment, you can use this provider model instead. And what you do here is instead of deploying the app to SharePoint you just deploy the manifest. And then you basically can point at the app that's hosted anywhere.

So, in this case here I can manually deploy my app to Windows Azure. It will set up the OAuth relationship, and the beauty about me doing that is I now can use the Windows Azure management console to log in and manage that app. So, I can scale it up and scale it down elastically. I can also now take advantage of all the Windows Azure features that are available within it, so that I can integrate it and make my app even more powerful.

So, let's go ahead and switch back to the demo machine and walk through what that looks like. And so I'm going to go ahead now and log in to Windows Azure. One of the things that's kind of cool is we've integrated single sign-on, between Office 365 and Windows Azure. So, you'll notice that I didn't have to enter in a user name and password. It automatically handled that for me. And I'm now logged in into my machine here.

And what I can do inside here, this is sort of the standard Windows Azure portal. So, this is how we manage apps and services inside Azure, and I can very easily create new resources within it. So, if I wanted to, I could create a new virtual machine if I want to host a machine up there; if I want to create a website, so if I want to host one of these Web apps, I could do that. So, I could say: Scott demo some random number, and create it. And one of the things we've really tried to do with Windows Azure is make things really fast and easy to use. So, you can see I'm creating a new site hosted in our West Data Center. And you'll notice it is created. That's how fast it is to create a new site.

And if I drill into it now, I basically have a Web server already set up that I can deploy Web apps to, and it's fully managed. That's just sort of an example of just how quick it is. If you want to create a database, that's really quick, too. I can go ahead here and say I want a new SQL database so I can do back-end storage for my app, and I can say Scott DB, hit create. One, two, three, done. And now I have a SQL database fully at my power that I can now use from within this application and start to use to store relational data. And I can create lots and lots of these different services all very fast, all very fluid. And the beauty about this is I can now use any of these services from within my SharePoint applications.

And so to take advantage of that all I need to do here is, I can go into Visual Studio, again I can use anything inside .NET to build it. So, in this case here I've actually modified our instance app not to use Web forms but instead to use NBC. And so there's a slightly richer version of this app here, and I have taken advantage of some of the new capabilities that we just shipped, including our new Web API support so that I could actually have this NBC app exposed to HTML-JavaScript on the client a richer set of views on top of my data. And then all I need to do is just go ahead and right-click and deploy this into Windows Azure in order to actually have it hosted.

And if I just, in the interest of time, I have it set up here already on an account that I've deployed that app into. And the cool thing is then I just take my manifest, upload it into the SharePoint service, and then when I click on that app now it's redirecting me to that app that I've hosted inside Windows Azure myself using this provider hosted model. And you can see now I have a much richer view on top of my list even than what we had before. I can integrate nice animations. I can approve and deny things in a very slick way all though that Web UI. And I have a nice, again, very clean experience.

And what's cool is, because it's running in a website that I actually host and provide support for, I can now drill into the Windows Azure admin tool, and you can see I can see the traffic in real time that I'm getting on the site. Again, I can use any of the features in Azure, and then I can also take advantage of the scaling capabilities, so that if I need more performance on this site because I'm getting heavy usage, I could say I want to deploy this on top of a couple of quad-core servers. All I need to do is hit save, and in about 20 seconds this application, the SharePoint application, will now be deployed across eight cores running inside Windows Azure, so I can handle a ton of load. And that's how easy and integrated we've made this experience. It offers just a ton of power and capabilities. (Applause.)

So, let's go back to the slides. I want to talk about one more feature that we're adding as a developer capability that we can use. We talked about the ability to auto- and provider-host Web apps. One of the other kind of cool things that SharePoint has supported for a couple of releases now is the ability to use workflows. And these are great to automate back-end business logic and tasks. And we're taking them further with this new release. And specifically, we're taking that same loosely coupled approach that we took with Web apps, and also enabling it with workflows. And what this means is as a developer I can now upload my workflows to SharePoint. But instead of running those workflows in the SharePoint service or process, Office will automatically now deploy them to Windows Azure and set up an OAuth relationship with them. And this means I can now do long running workflows. I don't have to worry about impacting the performance of my apps or my sites. And I can now use those workflows to kick off background tasks and integrate it across my enterprise.

And so we go back to our demo machine now. You can see a simple example of this in action. Here is the same solution that I had with my UI. You notice I now have also a workflow app within it, a workflow project within it. And I'm basically just defining a custom workflow that I want to run every time something gets modified in that list data. And so, you can see, for example, when the list data starts, if it's approved, when we save an item in that UI, I'm going to say send an email to the user that it's assigned to. And what we've done is just added another branch into the workflow, which says if it's high priority, I also want you to send an SMS message to their phone so that they know they need to get on it right away.

And what's cool is we're using the new Workflow Designer that shipped with Visual Studio 2012, and the new workflow features in .NET 4.5. If I drill in, you can see this is as simple Twilio SMS workflow, custom workflow that I've created, and I'm just calling out to the REST APIs. And Twilio is a great partner of ours with Windows Azure, and so integrating this way is really easy, and kind of again shows off some of the power of what you can do by taking advantage of SharePoint and Azure together.

So, now as we go back into our Web app here, let's test it out. Let me go ahead and take this one here. I'm going to mark it as being on high. And maybe we can show their phone here as well. I'm going to go ahead and approve this workflow. And so this is approving the workflow, updating the item in the backend there. It's going to kick off a workflow that's going to do many things, send an email to the user, it's also going to call out to Twilio and request an SMS message. And then Twilio is then going to turn, take the user data to figure out the cell phone number, send it to Twilio, Twilio then is going to send the SMS message. And you can see here even in a room of 10,000 people, we got the message. (Applause.) You click it. This is now connecting back to that same app that's the Web app now that's hosted inside Azure in the provider hosted model, and this person can now go ahead and approve it. (Applause.)

And that's all live, all bouncing across multiple clouds, all sending SMS messages in Wi-Fi with 10,000 people in a room. And so that is quite exciting to see work. And I think hopefully attests to the power of this loosely coupled model, and the fact that it really enables you to bring together lots of systems in a very, very reliable way such that we can demo it here.

So, let's go back to the slides here. So, hopefully you've seen here just some of the opportunity from a developer perspective that this gives you with this new model, just tons and tons of extensibility, a lot more powerful apps that you can build, and we just walked through a handful of these features, and there's going to be a lot more details about this throughout the breakout talk. And, as you saw, this just really enables just a ton of power and capabilities.

What we're also trying to do with this release is enable you to more easily monetize these capabilities as well. And we're doing that by integrating the concept of a SharePoint Store directly into the product. And so, with the SharePoint Store, users browsing SharePoint can go ahead and browse an app gallery of solutions that you build, and they can then very easily in a one-click way go ahead and deploy and use them for their sites. And they can use either the auto-hosted model where we'll deploy and host that app for you automatically, or the provider hosted model where you can stand up your own SAS backend, for example, with Windows Azure, and control it that way.

And if you're an IT professional, the good news is there's also IT governance built into the store, so you can control exactly which apps are available and who has rights in order to purchase them. And we think this end result ends up being super powerful and capable, and opens up a ton of opportunities. You can also, if you want to bypass the store as a developer ISV, you can also continue to sell apps to customers directly and still take advantage of this loosely coupled cloud app model.

So, we're really excited about this new cloud app model. We really think it opens up a ton of opportunities and experiences, and really going to let you take SharePoint forward in wonderful, wonderful unique ways. And we're really excited to see what you create with it. So, thanks a bunch and enjoy the conference.

(Applause.)

JEFF TEPER: Well, thank you, Scott.

As you can see we've made some awesome investments in the ecosystem and I love the way that our cloud stack has come together. You might remember that in 2010 Steve Ballmer made the statement that when it came to the cloud Microsoft was all in. I hope you've seen that in the keynote today and certainly the things that Scott just showed you were proof points of that up and down the stack.

As I open my keynote this morning I noted that this really is an incredible moment to be here together. Over the last two hours we've seen a tour-de-force of the new enhancements in SharePoint 2013. We've generated some excitement in this room, but I'm also proud to announce that we generate some excitement worldwide. And during the time that we've been here and keynote we were the No. 1 trending topic on Twitter. So, thank you for your excitement. I'm pretty excited about that myself. (Applause.)

There was a lot there that we showed today, but we did our best to follow Jeff's advice from the video and just kind of leave it all in, if you remember, to three simple themes. First there were new experiences that are designed to make SharePoint easier than ever to access and an absolute joy to use. There was innovation in the core capabilities of the product, shown by Richard and Michal, and then as Scott showed us, some updates to the ecosystem, including the new app model, as well as the SharePoint store. I hope that you can see why we think of SharePoint 2013 really as the beginning of a new era.

We've got a great week planned for you, and before I send you out I wanted to hit the highlights of that. We're going to start out just with a quick video. Let's go ahead and roll that film, please.

(Video segment.)

All right. Now, as always, for a community that loves to party, those evening activities are worth calling out. So, let me just highlight them very quickly. Tonight from 6:00 to 8:00 p.m. we've got Club SPC, or Lounge SPC. I'd encourage you to visit both. Tomorrow night is our big event with Jon Bon Jovi. And we sure hope that you'll join us. And then on Wednesday night you'll have the opportunity to meet with the experts behind the product in our ever popular ask the experts expo.

Before we close I just wanted to say a very big thank you to Dell, who is our diamond sponsor. Make sure you stop by Dell's booth to say hello to them. And I just want to thank all of you for joining us, it has been a pleasure to host you here in this session, and I look forward to seeing you out and about across the rest of the week. Thank you very much and have a wonderful week here in Las Vegas.

Thank you. (Applause.)

END

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