Who: Chris Capossela, EVP and Chief Marketing Officer
When: Tuesday, May 23, 2017
Where: JP Morgan Technology, Media and Telecom Conference - Boston, MA
MARK MURPHY: Okay. Good morning, everyone. I am Mark Murphy, a software analyst with
JP Morgan. And it is a great pleasure to be here with Chris Capossela, who is an EVP and Chief Marketing
Officer with Microsoft.
Chris, thank you so much for joining us.
CHRIS CAPOSSELA: Yeah, thanks for having me. It's great to be here.
MARK MURPHY: I was hoping we could kick this off by listening to any opening comments you might
have and maybe more importantly a little bit of a background or introduction of yourself.
CHRIS CAPOSSELA: Okay, great. So thanks everyone obviously for being here and for your support
of Microsoft. My name is Chris Capossela, and I'm the Chief Marketing Officer and Executive Vice President
for Microsoft. I'm on Satya's Senior Leadership Team. So I'm a peer to Amy Hood, many of you
know her as our CFO. We get to work very closely together, and we thought it would be fun to have me
spend some time with our big investors, obviously. And I'm also from Boston. I've been at Microsoft
for 25 years, joined right out of college, and had a ton of different jobs.
And it was three years ago that Satya became our third CEO, and a month into his tenure or so he asked me to
take on the role of Chief Marketing Officer and join his leadership team. And it's just been an unbelievable
three years of having a front row seat at a massive, massive cultural transformation inside the company that
I think people have seen outside the company as well.
MARK MURPHY: So let's begin with that. Let's talk about the brand perception of the company.
You've had this very long, very successful career at Microsoft. It sounds like Satya recognized
you immediately within a month and gave you this role. You've worked in Office and productivity, you've
worked in consumer and the commercial businesses. You've also been instrumental as well in the retail
channel. And I wanted to ask you as a marketer what is it that you think customers get right about
Microsoft's image and the understanding of Microsoft's vision, and then on the flip side what misconceptions
do you think might be lingering around where you would spend advertising, marketing dollars to try to correct
CHRIS CAPOSSELA: Yeah, I think by and large the brand health is just fantastic. If you look
at the Inner Brand surveys or the Brand Z surveys they'll have Microsoft in the top three or four or five
of all brands on the planet and that's fantastic. The competition in tech has other companies in that
top list, too. So we have obviously our work cut out for us. I would say that for us the most
important thing is to really get people to understand that Microsoft is not really focused on trying to be
a cool kid. We're not focused on some of the things that I think our tech competitors focus on. We're
really about empowerment. And Satya spent this time crafting a new mission for the company with the
Senior Leadership Team that's to empower every person and every organization on the planet to achieve more.
And so the keyword for us is really empowerment. We're never going to worry about whether we're viewed
as a cool company, we're going to be worried about making sure that the things people can do with our products
are amazing. And the things they do are likely to be cool if you look at the top 100 books on the New
York Times Bestseller List, the people who write those, and those books are amazing, the vast majority of
those are written in Word. Is Word cool? Not at all. Word is not going to be a cool tool,
but man it's am empowerment tool.
And so I think telling those stories of empowerment are really important to us as a company, and I think that's
what you're seeing us do more and more with our marketing. Most of our marketing now has real people
telling their stories of what they're doing with Microsoft technology to transform their company or transform
how they spend their personal time. And if you were to just look at the advertisements we run or the
videos we make, the vast majority of them now have real people on screen saying, hey, I'm a New York City
police officer sketch artist, and I sketch the bad guys. And here's how I use the Surface Pen to do
that, and here's why I love it. Or I'm Temenos and I'm bringing banking to every country that has a
phone, and the Microsoft Cloud is allowing me to do that.
So we want to really tell these empowerment stories. And if people think of us as a company that helps
power commercial business, consumers, et cetera, then I think we're doing the right thing. But I love
how people are viewing the company right now. It's very positive. And the outside perspective
finally matches the inside perspective. And that hasn't been true. Prior to Satya taking on the
CEO role there was a real disconnect between the inside company seeing how we saw each other and how the
outside world saw us. And so that's been awesome to see change.
MARK MURPHY: So Word isn't cool, but I will tell you Excel is pretty cool for this audience.
CHRIS CAPOSSELA: Yes. And that's what it comes down to. Financial people will tell
you Excel is amazing. But if you talk to somebody who is an author, they wouldn't say Excel is amazing.
They would say Word is amazing. It is all what in what it does for you makes it very important
to you. But I think from a brand perspective, people ask me all the time what are you doing to make
Microsoft cool? And it's like, nothing. We're literally doing nothing to make it cool. We're
trying to build great things. And if Surface people love Surface, fantastic. I want you to love
But am I doing some metric about cool? I'm not doing any metrics about cool. We measure, do people
think Microsoft's best days are ahead, does Microsoft build tools that matter in my life, am I proud to use
Microsoft products, would I recommend Microsoft to my friends and family? Those things we measure.
No cool factor is in any measurement that we do. And that I think is the right mindset for us
to have. Even if someone says to me, Minecraft is so cool. Fantastic. I love it. It's
just not the goal to make it cool, it's the goal to make it awesome. And I Iove that my daughter spends
hours in Minecraft instead of watching TV or whatever. I think it's a great thing.
MARK MURPHY: So if you go back, in some ways there has been some real internal change, right?
CHRIS CAPOSSELA: Huge.
MARK MURPHY: So if you go back a decade, Microsoft was viewed by this audience as being a PC-centric
company. You had struggling products like the Zune player. You had the less successful Windows
launch. You had Windows Vista, remember that one?
CHRIS CAPOSSELA: Are you kidding? Yeah, I lived through it.
MARK MURPHY: So now --
CHRIS CAPOSSELA: I look like I look today because of Windows Vista.
MARK MURPHY: I would have thought you'd have more gray hair.
CHRIS CAPOSSELA: It all fell out.
MARK MURPHY: You look at the company today and you've got these leading edge technologies, you've
got the HoloLens, and there are incredible demos of the HoloLens right now. It looks like it's a step
ahead. You have strong advancements in AI. You have Cognitive Services. You have the Azure
platform. How is the marketing and branding and advertising kind of evolved to keep lock step when
the technology evolution is so rapid?
CHRIS CAPOSSELA: Obviously, we try to market what we have as opposed to any visionary future.
I'm never a huge fan of marketing stuff that people can't actually go use. And so it's one thing
to do a sexy demo or give a speech that has some far off vision that people get excited about, but I don't
think you market those things. I think those are used at important moments in time.
The marketing has to be about telling how companies can do better than they're doing today using your stuff.
So we really try to focus on what's possible today. HoloLens is far more than a demo. You
know, we have a Developer Edition out. We have huge companies doing amazing things with HoloLens. So
the PGA is doing some cool things with HoloLens, Volvo, and Japan Airlines, and many, many companies. So
that's actually a very real thing and that I can market.
And I want to market what they're doing. How are we reinventing learning with the HoloLens with Case
Western University? How is Japan Airlines reimagining the way training happens to service a jet engine?
Jet engines are huge. It's very expensive and hard to train people on how to service them if
they have to actually be in front of the jet engine all the time. With HoloLens you don't. You
can actually have a regular room that you put the HoloLens on, and now you're seeing a hologram of the jet
engine, and you can have fantastic training with the holograms themselves moving around, flipping the hologram,
getting to the inside components of the hologram without disassembling the jet engine. There are some
amazing things there.
So we want to market what's real. We want to market how we can help people digitally transform. And
for me one of the metrics of success is just how often when I call on a customer are we talking about licensing
Office versus how often are we talking about how we can help you transform your company. And boy if
you want to know the most shocking difference of the old Microsoft versus the new Microsoft, it's how little
time I spend talking about the licensing details of Office, and how much time I spend helping customers understand
how they can digitally transform their entire company on the Microsoft Cloud, which Office is a major component
of. But the dialogue isn't about pricing and packaging and SKUing, it's about how do we do this cultural
transformation, how do we change our business. That means we're in a very, very good place.
MARK MURPHY: So I want to ask you what artificial intelligence is going to be in for this whole
equation. Many of us were just at your Build conference, a very successful conference up in Seattle.
You demoed some incredible technologies, in my opinion. There was computer vision. There
was speech. There was text understanding. You of course have Cortana in the portfolio.
Many of us thought that this story Remix was a big hit. It was a way to take it takes you photos
and your videos and it will kind of automatically create a movie out of them. It will put it to music
and then you click a little button and it will remix the whole thing and do it all differently.
CHRIS CAPOSSELA: Yeah. You can pick the actor you want to be the star.
MARK MURPHY: Yeah, it was incredible. You can tag them and the text will follow them. You
can turn a soccer ball and it will be an exploding soccer ball. It was really incredible. So
these things demo well. But Google is also pretty hard at work on artificial intelligence. And
they're no slouch in this arena. And so I want to ask you who do you think has the clearest vision
for AI right now and as a company how do you think about building a sustainable advantage in that market?
CHRIS CAPOSSELA: Yeah, I mean obviously I'm going to say we have the best vision in it, that's
no huge surprise. I think Google is not the only one. Everybody obviously is jumping on sort
of the AI bandwagon. One of the things that I love about Microsoft is just the deep amount of investments
we've made in deep research. And so to do AI well it's not a gimmick, you have to have incredibly an
incredible team of researchers that are dedicated to these really, really hard computer science problems
of vision or of speech to text, or text to speech, or the many, many different things that we're working
And I only think there's a handful of companies that have built the deep research talent inside the company
to do this really well and certainly Microsoft would be at the top of the list. Harry Shum is super-recognized
as many others are. He leads our AI and research team. But then obviously the magic comes into
how do you figure out how to apply it. And for us AI I think is broader than it is for more companies.
Many companies you take a look at like IBM with Watson, it's sort of one thing. And they talk
about it as one thing and they've done a ton of marketing on it, et cetera.
But for Microsoft AI actually spans so many different things we do, these Cognitive Services are services that
developers can use right now to integrate AI into their own applications. So if you want to make a
construction site safer using cameras, we demoed this at Build. We're just using off the shelf cameras
on a construction site that is always under surveillance anyway, for safety reasons. The cameras can
do amazing things using our Cognitive Services and the Microsoft Cloud to identify that a dangerous piece
of equipment hasn't been put away correctly or there's a chemical spill that no one is attending to. And
having the AI to do that, those developer services exist right now.
But Microsoft also has the ability to build AI into the products that you're all using every single day. So
when you use Office more and more of Office is going to be driven by these AI models to make it incredibly
easy for you to get started in Excel, or get started in PowerPoint, figure out what data you should go bring
into your Excel spreadsheet, based on what you're doing.
There's just so much that we can do that isn't just about the developer, but that's actually about the billions
of people who use Windows and Office every day. So for us there's multiple components to our AI strategy
and I think we've got the broadest view of it. And you saw a lot of the press coming out of Build saying,
wow, we were really impressed with Microsoft's approach to AI, which was great for us to see.
MARK MURPHY: So the structural advantage for Microsoft, it will begin with the quality of the
talent that you have in the research labs, the commitment to the research labs, the Ph.D.s that you have
there. Are you trying to say that there's a structural advantage in begin able to not just infuse AI
into your own Microsoft technologies, but being able to appeal to the base of developers that are going to
unleash their own with the developer toolkit?
CHRIS CAPOSSELA: That's right. You need to make AI capabilities available through the cloud
platform so that any developer can just come and bring AI to their own solutions. So Azure has to be
great at giving you massive sort of super-computing capabilities for AI. The actual AI APIs for learning
and vision and speech have to be there and then every developer can get at them. And we can integrate
AI into our own first party applications. And that's where I think you get a span that's broader than
what most companies will be able to do.
MARK MURPHY: Okay. Now let's transition that into a little discussion of AWS versus Azure.
CHRIS CAPOSSELA: Sure.
MARK MURPHY: I want to ask you, I guess the simple question is just how do you position the differentiators
between those platforms from a marketing perspective. When you look at the numbers, Amazon's footprint
is larger if you're just looking at the infrastructure as a service, so the compute and storage. They're
run rating a little under $15 billion. Azure is run rating around $3-1/2 billion right now. But
Azure is growing faster. It's growing noticeably faster. And I want to understand how do you
make sure the world doesn't get stuck in a mindset that this is just a commodity layer, it's storage and
compute. There's no difference between these two platforms and treating them like a commodity.
CHRIS CAPOSSELA: Got it. First, I won't confirm those numbers. So just for the record
I don't recognize that Azure number. But I'm sure you have a model behind it. I just want to
make sure I don't say yes to that number or no to that number.
MARK MURPHY: Understood, we understand there's some wiggle room.
CHRIS CAPOSSELA: I would say a couple of things. One of the most important things we hear
from customers that our approach is quite different than other cloud providers is this deep understanding
of the need for hybrid, a deep understanding that the ability to write an application for the public cloud
and then be able to run it in their own data center using Azure Stack is a massive advantage. If you
want to do business in Russia it's hard to find a data center, a cloud provider in Russia that meets all
the needs of Russia, as one example. But there are many other examples.
With Azure Stack you can buy your own hardware. You can run it yourself in whatever place you want to
run it. And yet you're building an application that works exactly on premise as it works in the Azure
Cloud. So there's a major shipping and tour company that has big cruise liners that take people out
into the big open ocean and they love the notion of Azure Stack, because they can write their applications
for when people are connected to the Internet, the ship is connected, but they can also write their applications
and run them on Azure Stack on the ship when they're not connected, or when it's very expensive to be connected
and they choose not to be connected.
So Microsoft's really the only one who can take you from your data center to a hybrid data center to the public
cloud and that alone is a massive, massive advantage, as big enterprise IT moves from holding onto everything
to realizing that the world is going to be a blend. And I think that realization that the world is
a blend of public and hybrid and private is something that plays to Microsoft's strength.
Then you get to the actual things we offer on Azure that are incredibly differentiated. Office 365 is
built on Azure. Dynamics 365 is built on Azure, these higher level services that aren't about storage.
The cloud storage business is a very uninteresting business. But running full fledged machine
learning models that help companies do predictive analytics for when they should repair their elevators,
that's actually very high value. You can charge a margin for that business. And that plays to
So infrastructure as a service may be a requirement, but it's not actually where we think the exciting and
interesting part of the cloud is going. That's the higher level services that we actually feel like
we can do quite well. And you're seeing that in our growth rates.
Then you can get super-technical and you say, hey, we have a better data center footprint than anybody else.
We're in more regions than Amazon and Google combined. We're the only public cloud company that
legally operates in China. We're the only public cloud company that has a data center in Germany that
respects the data sovereignty laws of Germany. So those are good advantages, too, but I think hybrid
is critical and the higher level services, those are the ones that will last, that are really differentiating
over many, many years.
MARK MURPHY: So hybrid and higher level services, if this whole war if the cloud platforms
war is starting to enter a new phase, if we look back on it and say phase one really was about tech first
companies, it was about Uber and Netflix, and Airbnb and all that. If we look forward and say phase
two is going to be about enterprise IT, would you would it be your opinion that having these higher
level services is essentially going to allow Microsoft to catch up and surpass AWS in that market for storage
and compute, or would your answer be, well, it doesn't really matter it's all going to come down to the higher
level services anyway?
CHRIS CAPOSSELA: You know I certainly think that the track record that we have in the enterprise
plays well to Microsoft's strength. The account teams that we have calling on large enterprises, the
fact that most are running their e-mail through our cloud, and e-mail, believe it or not, has become just
this incredibly line of business system and we have many, many CEOs telling me, hey, I can deal with an SAP
outage. I can't deal with an e-mail outage for a second. So you have to have five nines
isn't enough for your e-mail system.
I think having that track record and that relationship where customers trust us, they know there are going
to be mistakes made, but they trust us to respond to those mistakes really well. There's no doubt as
the data estate and data centers move to the cloud on the enterprise side that we have a wonderful opportunity
that's sort of ours to lose, shall we say.
But I also speak to lots of companies that are on AWS and they tell me that today 90 percent of my spend in
the cloud is AWS and only 10 percent of it is on Azure and I have a goal to make that 50/50. And that
has actually nothing to do with they believe in us more. The literally just want balance of trade.
They literally just want the ability to sort of say, hey, it's going to be better for my company if
I use multiple vendors here. And obviously given that Amazon is in the top spot and we're in the second
spot we have a lot of headroom from simply playing balance of trade across the cloud.
MARK MURPHY: So dual sourcing for whether it's redundancy or backup, or just having
CHRIS CAPOSSELA: Or pricing.
MARK MURPHY: Okay, and that's going to become common.
CHRIS CAPOSSELA: Without a doubt, I hear that more and more from people. And that basically
says, hey, we've arrived. People see us as a real vendor in this space and we're actually the clear
number two and so there's a lot of upside for us.
MARK MURPHY: Okay. And we see that in our CIO survey work, by the way. It certainly
backs up that a lot of progress is going to be made by Azure.
We have about 13 minutes remaining. Why don't we check now for questions from the audience? We
have one up here in the front. And could we get a microphone up here?
QUESTION: Relative to industrial IoT, could you tell us talk a little bit about because a
lot of people in the room are interested in this, what role Azure is going to play in terms of providing
edge services and what industry areas are you guys going to concentrate on? So I'm very interested
in that area in terms of what you're doing.
CHRIS CAPOSSELA: Yeah. So at our Build conference we talked about sort of our worldview
of computing moving to this intelligent cloud and intelligent edge where the cloud is incredibly important,
but there will be 25 billion devices that are connected and considered smart devices in the next couple of
years according to various industry analysts. And so there's just a massive opportunity for us to have
intelligence at the edge of the cloud that runs on these devices themselves and lots of people like to think
about the mobile phone as the device. But we see industrial opportunities on just an incredibly wide
array of different device types.
We have a wonderful opportunity at Microsoft and IoT is one of our fastest growing Azure services to have a
lot of these devices be powered by Windows and to have even more of these devices use our Azure IoT services
that allow them to do compute on the device itself. You can imagine building a neural network in Azure
and then deploying it to an edge device that's doing something super interesting, maybe it's a robot or a
snake that somebody is driving into a place that a human being can't crawl into to do some sort of security
thing. And that's an amazing opportunity. We think there's going to be tons of these.
I mentioned cameras getting smarter and smarter and being able to do workplace safety, where you're building
a sort of neural network in Azure, deploying it to a device on the edge and that device on the edge becomes
incredibly valuable to a company for all the things that it can do, whether it's workplace safety, whether
it's checking towers for needing to be repaired, those things are all super interesting to us.
Retail is a vertical that we think this is really interesting for. Discrete manufacturing is an industry
we think is very this is very interesting for. Financial services would be another one. Healthcare
would be another one. So four or five industries that we think IoT is particularly well suited to and
this notion of devices on the edge of the cloud are areas we're pretty excited to go after and hopefully
we'll see lots of great Azure growth, but also Windows embedded growth as well, as Windows powers a lot of
devices you may not know that it's powering, gas stations, vending machines, et cetera.
MARK MURPHY: Other questions from the audience?
We have another one right here.
QUESTION: Recently there was a New York Times article on how Google has taken over the classroom. Anecdotally,
my son is in second grade and when he does school projects he actually does not use Word, he uses Google
Docs. And it's not his choice, it's what the school as a whole uses. Is education and schools
and classrooms an important frontier for Microsoft?
CHRIS CAPOSSELA: Yeah it is. The education space is a really interesting space, because
everything is basically free when it comes to software and technology. The hardware is obviously not
free, but the software is. And so from a business model perspective you'd say huh. But these
are the workers of the future, these are the CEOs and the inventors of the future and so we think it's very
important for us to have today's students, particularly starting in middle school, maybe even fourth grade
and up, using Windows and using Office and using Minecraft in the classroom, using Skype in the classroom.
We think these are really interesting opportunities for us.
I know the article you're talking about. A couple of weeks ago we had a major education event that Satya
kicked off where we introduced a new version of Windows called Windows 10S and we introduced a bunch of hardware
from our hardware partners, including a brand new laptop from Microsoft called the Surface Laptop that runs
on Windows 10S.
And Windows 10S has the very important capability of essentially being locked down. You can't download
anything from the web on the machine, and it starts up very quickly. And it stays very clean and safe
and secure 1,000 days later after you started using it. And most Macs and Windows PCs don't have that
property because people can download anything, they sort of get cruddy over time and you have to go back
and clean them up. And this is one of the reasons that Google has had success in the education space
with Chromebooks that don't have that property.
So we think the combination of Windows 10S plus low-priced hardware from our hardware partners, plus fantastic
tools like OneNote, which students absolutely love, like Minecraft which helps kids to learn how to program
in the classroom, we have some real assets that Google doesn't have that we think we're ready to really do
a phenomenal job in the education space. And I think that's super important.
If you look broadly around the world, Windows and Office are still incredibly strong in education. But
there are countries like the U.S. where we have a lot of room to do better. And we think Windows 10S,
great hardware, great manageability to manage these devices, Minecraft, Skype, OneNote, Office, we've got
a really awesome story to tell and we're going to go out and tell it now.
MARK MURPHY: There's one back there.
QUESTION: Thank you. You had an in-depth comparison between Azure and AWS. Can you talk about
the differentiation you have between your AI and Google's AI, like which one is better? And you talked
about data analytics, and Google also offers that. How do you differentiate your product compared to
CHRIS CAPOSSELA: Yes. So Harry Shum would be a much better person to answer this question
than me, but I would say that there's a whole series of tests that these AI engines get put through in terms
of who does a better job at a deeper level of understanding. And this is true computer science, these
aren't like industry benchmarks run by a Gartner. Now we're talking about let's go visit MIT, Carnegie-Mellon,
et cetera, et cetera. And there are people who dedicate their lives to doing computer vision.
And one of the areas that we really excel in is computer vision, being able to recognize objects in the world
and not just tell you that it's a person, but actually be able to give you incredible detail about what that
person is doing, the emotions that that person has, what the person is looking at, if they're wearing glasses,
if they're wearing a blouse, what color is that blouse. The ability for us to recognize objects goes
I think far beyond what anybody else has done.
Now, I'm sure Google is busy trying to do better than us and will continue to sort of leapfrog. That
is the technology world. But I would say today Harry would probably sit up here and say I'd happily
compare our algorithms around vision, text, speech, et cetera, to anybody's. And we think they're better
than anybody's in the world.
If you look at what we just showed with PowerPoint and we did this demo using what we call Translator integrated
into PowerPoint, where somebody was speaking to a PowerPoint slide in English, and anybody else on their
phone could essentially dial in to the presentation and you choose the language that you want to see the
subtitles in on your phone, and we support something like 60 languages. So I'm speaking in English,
and on this phone it's showing what I'm saying in Chinese. On this phone it's showing what I'm saying
in Spanish. On the screen we're showing what I'm saying in French as subtitles. That type of
speech to text translation at high, high levels of accuracy we would say we're doing better than anybody
I'm sure there's a slew of tests that Google would say they're doing better than us. We're both quite
good at this. But I don't think there are 20 companies that are quite good at this. I think it's
a very small number of companies that can afford to put the R&D into being really world class at AI,
just like there are very few companies that can be world class at running global data centers.
So we think it's a very small number of players, one, two or three, probably two or three. And we're
very proud to be at the top of that list, and we're going to fight every day. But there aren't going
to be 20 of them. There's going to be a very small number.
MARK MURPHY: Any other questions?
QUESTION: Can you talk a little bit more about China? Microsoft has said repeatedly, Satya and
you just now that Azure is the only public cloud to operate legally in China. Amazon would disagree
with that, I think. Can you go into a little more detail about what you mean?
CHRIS CAPOSSELA: Well, having a data center actually in China run through a joint venture with
a Chinese organization that the government recognizes, we're the only ones in the world that do that. Google
doesn't do that, Amazon doesn't do that. There are Chinese companies that do it, of course. We're
the only multinational that does that. That's specifically what I'm talking about.
MARK MURPHY: That was the one.
QUESTION: Can you talk about gross margin progression in your cloud business, I mean overall cloud makes
50 percent gross margins now, I believe. But can you comment on the individual components and how you
see that over the next couple of years?
CHRIS CAPOSSELA: That I can't comment on, the individual components. I'll get in deep trouble.
Amy will never, ever let me out of the house again if I talk about the individual components.
I will tell you I think if Amy were here she would say, hey, look, the progress that we're making both on the
cost of sale side we're pleased with, and also on the cost of providing a service, the actual COGS of running
Azure or Office 365, we're making the progress that she expects us to make, which I think is very good progress.
So I think both the cost to get a sale and the marketing cost to acquire a customer are headed in the right
direction, as well as substantial improvements on the cost to run our cloud infrastructure. We want
to see progress on both of those things, and we are seeing progress on both of those things.
I think she'd also say, hey, quarter to quarter you may see some lumpiness as the investments we make in CAPEX
might boost a little bit this quarter when we open up a new data enter or what-have-you, but in general I
think we're very happy to be on the plan that she has laid out, both from the $20 billion cloud revenue run
rate, but also from getting the gross margin to be where we want it to be. And I think there's nothing
that we see structurally that makes us feel like we can't be at the scale that Amazon is at with fantastic
or with very good gross margin.
And I think that answer will allow me to keep coming back to conferences like this.
MARK MURPHY: We would like that. We would like that. And on that note, we are out
of time. We will wrap up there.
Chris, it's been such a great honor having you with us and thank you for joining us.
CHRIS CAPOSSELA: Thank you so much.
Thank you, Mark.
February 26, 2018 8:45 AM - PT
Morgan Stanley Technology, Media & Telecom Conference