Who: Amy Hood, Chief Financial Officer, Microsoft Corporation
What: Deutsche Bank Technology Conference
When: Wednesday, September 12, 2018
ANNOUNCER: Ladies and gentlemen, please welcome back to the stage Karl Keirstead.
KARL KEIRSTEAD: Thank you everybody again for attending the event, and we're super honored to have the
CFO of Microsoft Amy Hood.
Amy, thanks for coming to Vegas to attend our event.
AMY HOOD: Thank you. This is definitely not my kind of town. But happy to be here.
KARL KEIRSTEAD: I think it's perfectly appropriate to have Microsoft do the luncheon keynote. I'm not
exaggerating to say that Microsoft has been one of the most amazing success stories in enterprise tech in the last
five years. I mean, it wasn't that long ago that when we talked about Microsoft the growth was relatively modest,
the story was all about smart phone was going to kill Microsoft and the stock was in the 20s. Look at today where
it's a public cloud story. The growth is approaching mid-teens and the stock is at 110. To me that's amazing.
I'm sure behind the scenes it took a lot of work to make that happen. From the outside it's just been a fun story
to watch, Amy.
AMY HOOD: Yes, I would describe it as work. Yes. It doesn't sort of just happen. But, yes, I agree.
KARL KEIRSTEAD: You've got to be proud of the change that's happened at Microsoft.
AMY HOOD: I am. I'm proud of the team. The team has done a really nice job. So it's nice to be a part
of something like that. I played some small role, but the team has done an amazing job in the past four-and-a-half
to five years in terms of realizing ambitions, setting ambitious goals for what we could be, and then every day
working to achieve them in a culture that allows that achievement. And so it feels great to be there and to still
feel as happy and excited to come to work as I felt when I got the job. So that's what you want. So it's fun, yeah.
good. Well, you and the Microsoft team
have done a lot of good things, but maybe where I'll start our Q&A is on
some of the external benefits that have helped you along. For a long time Microsoft rarely gave any
commentary on the earnings calls about sort of the state of the spending
backdrop. You didn't want to play the part
of being an economist. But the last
couple of quarters, Amy, you've gone out of your way, I don't know whether
that's the right term, but to voice a view that it feels good out there and
that enterprises are spending more robustly.
And I just wanted to start off by asking whether that's still the case,
and given all your conversations does it feel as if the factors that drove a
fairly robust enterprise spending environment in 2018 do you think that has
legs into next year? How does it feel?
AMY HOOD: Let me back up first. Fifteen years ago when I was writing earnings scripts for others to
read, we actually did comment on macro and geo spend. So I wouldn't want you to think that's some new thing I was
excited to opine on. So I would first of all in that theme, which was I meant to make some grand statement by its
inclusion, it was simply a statement about how it looks to us as well, from our own unique seat do business.
And within that I think, as I said at the end of July, the important thing is to control the things that you can
control. So if you say, fine, how is IT spend, it seems like it felt thin. Fine. But the bigger issue is what are
we doing to execute well no matter what the environment is that you find yourself in, and that is about really two
things, how you pick markets and how you execute against that whether it's engineering, marketing, sales, finance,
So for me I feel great about the markets we've chosen. They are amongst the highest growers in the overall market
called IT or GDP or whatever spend buckets you want to put it in. And, secondly, I feel quite good about our execution
within each of those, both product portfolio, competitive positioning, and then the day-to-day execution in the
market. I think for most of us the most important thing we can do is set a great example of focusing on things you
can control, and that tends to be I think how we all manage inside the company.
KARL KEIRSTEAD: Got it. Okay, that makes sense. And maybe just to zero in on some of the parts of the
Microsoft story, Azure might be less than 10 percent of the revenues, but it's probably at least half the inbounds
I get. So why not start there.
So there's a couple of interesting dynamics happening within broadly that Azure bucket where you have a SaaS or EMS
business with a certain growth rate. You've got more consumption base or core Azure with a certain growth rate.
And then we get to a blend. Can you talk a little bit about how those relative growth rates of those two pieces
are shifting last year and into next year?
AMY HOOD: Sure. I think maybe it's best, as you point out, just to talk about the dynamics that sit
underneath that. Our EMS business really if you were in our field organization or at a customer, the Azure EMS business
would feel much more like it's part of Office or Microsoft 365. It's sold that way. It's sold on a per user basis.
And so when things are sold per user they tend to have different dynamics. And what you're seeing is simply that
That is an amazing growth story for us. Our EMS business is probably one of the largest multi-billion-dollar franchises
that's been built, certainly by us, and it offers such tremendous value to customers and that's what always sits
at, I believe, any sustainable business is customer value and EMS certainly offers that. The dynamics of it will
ultimately look far more like you think about Office. It has SaaS-like margins. It's sold per seat. It will have
install base growth. It will have RPU growth opportunities as we add new features. We use kind of that same lingo
as E3 or E5. You could apply the same language to that product. So I'm excited about how big it is, I'm excited
about the value it offers, and we've had good execution. But the dynamics will look different as will the gross
margin structure of that business, which is quite high.
Now "the rest" of Azure is about a lot of the things we've always talked about that are so exciting. It represents
one of the largest TAM expansion opportunities that I think has ever existed. I see it as continuing to be large
and expansive and every time I spend time thinking about how large it can be I feel like it can be larger. The applicability
and the excitement around development and how often and its utility across every industry and across every country
So that business I think is a little different. Its TAM isn't set by users, its TAM is set by workloads and that
means it has a bit of a multiplying factor to it as more workloads can be changed or disrupted or transformed I
guess is the word we like to use.
That business has an increasingly large base, and so the growth rate mitigates, but that growth rate as you all have
seen has remained quite healthy even as the base has gotten larger and larger.
KARL KEIRSTEAD: Got it. And, Amy, as we think about trying model Azure, all of us are trying, one thing
that we can look to increasingly now, before it felt like Azure was in the early days a pay as you use model, now
as a lot of large enterprises have become Azure customers and they make large up-front commitments a lot of those
commitments don't sit on the intelligent cloud revenue piece, they sit on the balance sheet on unearned revenues
and in your backlog.
It's certainly tricky to know how much of that backlog and unearned revenue increase is attributable to Azure and
very tricky to try to waterfall that into subsequent Azure revenues. But maybe you could comment on sort of how
much of that balance sheet up tick is due to Azure commitments, and is there any guidepost you can offer about how
to translate that into subsequent Azure revenues or is that too tricky?
WALTER PRITCHARD: Got it. I'm going to pause a second and see if there's any questions.
We have a few microphones.
AMY HOOD: It's not tricky per se. It's just a different dynamic. If you go back to the conversation we
just had, EMS coming off the balance sheet onto the P&L looks just like Office or Dynamics. It has all the same
mechanisms. It's more like a subscription. Azure in general is only recognized when it's used. And so the pacing
of that utilization from the balance sheet to the P&L can absolutely be at different rates. And so a simplifying
fact, I'm sure, is to just have it be ratable, which is fine. But people should know that signing big commitments
means nothing to the P&L until it gets used. So having in your mind, I think you said pay as you go, the way
it hits the P&L is quite similar to that, right. It's move it over as it gets used. And I think that may be
not as different of a leap as I think you may make it sound in the question.
And that's why when you talk about the importance of driving utilization or consumption; it's why so much of our
emotion in our field is focused on customer success. Customer success is the thing that makes the flywheel work
in a business-like Azure. If projects are picked well, if value is there, if the customer derives value meters thin
and revenue comes to the P&L. Without that, without customer success, without customer value, without a focus
on customer deployment and project picking, you won't have the right dynamic.
That's why we spend so much time now investing in our sales force, whether that's technical capability, direct interaction
with customers, project by project success, and increasingly everything from putting people on the ground to making
sure our customer support is world class. All of these things are what drives customer outcome. So the most direct
way for me, as a leader, to make sure things come from the balance sheet to the P&L in this business, is to
make sure the process is as easy and smooth for a customer as it can possibly be, as opposed to thinking of it as
an accounting construct.
KARL KEIRSTEAD: Yeah, got it. Okay. That makes sense. And maybe, Amy, moving a little off Azure to the
broader more quote on-premise server product business, that's been another big success story at Microsoft. It's
a giant business with SQL Server and Windows Server. And I suppose a couple of years ago many would have argued
that this business should slowly decelerate as workloads transition successfully into the public cloud model and
yet it's actually the growth has hung in there remarkably well, where you just put up a terrific quarter.
So as you think about the variable for that business in Fiscal '19, what are they and what gives you the confidence
maybe that big enterprise server product business can hang in there at something close to the call it low to mid-single
digit growth rates that you just put up.
AMY HOOD: In general people really want to decomponentize the KPI that I would prefer. The server KPI
that we talk a lot about, the products and services KPI, is really the mechanism to see our success of our hybrid
architecture sold to customers. That is the one that matches both the sales motion and the value prop that customers
KARL KEIRSTEAD: This is Azure plus.
AMY HOOD: It's Azure plus the on-prem component. The reason it's so important to think about them collectively
and then I'll talk about the dynamics that sit underneath the on-prem number specifically, because the sales motion
and what customers increasingly want is they want to understand how best to utilize, whether it be on-prem or in
the cloud the value of the architecture they've built.
I feel like we were focused on hybrid five years ago when we started talking about it. I think the market has moved
to increasingly talk about the value of hybrid. We've been architected that way from the beginning. That has real
customer value to choice, to timing. And as we have seen that value at customers, whether they purchase from me
a SQL Server license or they ultimately use that SQL Server license through hybrid -- Azure hybrid benefits in the
Azure Data Services pool, those are both great outcomes for me, mostly because they are both great outcomes for
the customer that's given choice and value to them.
The accounting construct that lands it in one place or the other, I'm really happy to follow in a 100 percent compliant
way. But the messages in that first KPI, which says people are making a commitment to our vision for compute for
storage, for data, whether they buy it through one licensing mechanism or through an Azure commit, I'm not as probably
focused on as maybe individual model builders would be.
That being said, the dynamic most impacting that on-prem number, there are two, one is the hybrid benefits I just
talked about, which adds flexibility and price, benefit and deep value to customers, because it allows flexibility
in using those licenses right in the cloud for a small price premium. It is a massive price advantage to customers
to utilize those rights when they take those workloads to the cloud.
Secondly is premium mix. We've continued to see increasingly premium mix, which obviously comes with RPU increases
in on-prem. Some of that is in the most recent release is the value, which we've continued to see. That's been the
more consistent driver, I would say, of that on-prem number over time; the newer driver would be the hybrid benefits
that are now available.
KARL KEIRSTEAD: I'd also love to ask about the core Office business at Microsoft. That's been another
big success story, where I don't think many people years ago, given the size and maturity of that business, would
have thought that the commercial office growth rate could be 10 percent-plus and staying at that level. So congratulations
on that and I think that you spend part of your career at Microsoft in that unit, didn't you, Amy?
AMY HOOD: Yes, I did. I did. I've spent a long time at Microsoft. So I've almost been in every unit after this many years.
KARL KEIRSTEAD: Yeah, well that's been an amazing success and I wanted to ask you about the sustainability of that, because you're getting obviously deeper into the on-prem to 365 shift, deeper into the E1 to E3 shift. So as you look for growth drivers for the Office business in fiscal '19, what are a couple of them that you would encourage us to focus more of our attention on?
AMY HOOD: I'm not sure that it's more, per se. The logic and value we offer to customers we've tended to sell in this particular business through suites. And the investments we've made over the past couple of years have been meant to make those suites work terrific across multiple need points, multiple operating systems. So in many people's minds that would show itself as investment in the mobile applications of each, as well as the mobile applications' ability to work across iOS and Android or other devices people use in addition to our Windows experiences.
We've also invested in new workloads and new value, which has always been the plan, with what I would say Office 365, but maybe more broadly Microsoft 365.
The value-add of the past few years has generally been in manageability, security, communications with things like Teams or collaboration tools. The value of those, and I should also add analytics when I think about some of the progress we've specifically made with Power BI in the past year, which has been -- it was probably the best years we've had in that business in a long time.
And so I look at those and say, wow, that playbook is not a new one for us. We should look at and say where can we add value in a suite that has come to mean far to people than Word, Excel, and PowerPoint. Now it represents so many of the tools they use every day to get their job done, whether that's OneDrive, which has had a really terrific year, specifically OneDrive for Business, whether that's the Teams momentum we're seeing, especially now that we've launched a more viral motion, as well, for Teams, or whether it's Power BI.
So when you start to define and redefine Office as a broad suite of tools, you could see that the concept of saying, well, the install base couldn't grow and/or you couldn't charge more per seat. If you add value you provide good value at the price. And I continue to believe we've added a lot of features that provide great value.
If you then say, well, Amy, I get that you're adding more and actually the RPU story, what's the install base story? The install base story has really been growth in small business, which makes a ton of sense. The ability to access these types of tools and have them be modern and consistent when you didn't have the resources like IT seems relatively obvious. There is still a lot of runway in that business on a global basis and I feel quite good about it.
The other place where we're excited is what we call the first line, or front-line worker scenarios, which allows us to even grow the install base inside enterprises. You've seen us talk about the possibilities for HoloLens in that scenario. I think of HoloLens or many other extensions as just another end point for Office where we can reach a new user, a new experience and some of those will also be mobile only, which is also a really good opportunity for us, especially in emerging markets, products like Kaizala, which we tend to think of as a more mobile office type product in emerging markets for us is another way to add install base.
KARL KEIRSTEAD: And, Amy, you listed a number feature add-ons like Power BI and One Drive and Teams and security, not to force you into picking a favorite, but are there one or two of those or perhaps there's others that you're most excited about this coming fiscal year and next.
AMY HOOD: I think in some ways when the business is as big as ours is, you want me to have more than one favorite. In many ways they go after different opportunities. The opportunity Teams goes after is not the same opportunity Power BI goes after. We have -- and the more value we can bring in these suites the sticker we know they are and the lower we know churn is, the more workloads that get deployed, which is a real focus for us, the better off and the higher value that perceived at the customer end point, which is really what matters.
KARL KEIRSTEAD: Okay. Maybe, Amy, we've flip to gaming if that's all right. That's in the spotlight more now. When I go to E3 and talk to Phil he's all jacked up about the future of gaming. Maybe you could talk a little bit about that. I think there's a number of dynamics going on. We need to be careful when we model that sector, because Microsoft is coming off of super-robust fiscal '18. So we want to be careful about not getting carried away on our growth expectations, but on the other hand there's some really interesting stuff going on in gaming, namely with cloud gaming, et cetera. So do you mind addressing the outlook there?
AMY HOOD: Yes, I'll lack from maybe some of the passion that Phil has, because when you have grown up in a business and you've built it and you spend your life in it, there's a special sense of connectivity that you get when Phil says it. So I'll do my best Phil impression. That's why optimism is equivalent, even if my delivery is not. What I would ask everybody to do is step back a second on gaming. Gaming in a way for us I would urge everybody to think about just as another incredibly interesting workload that exists in the worldview we have of an intelligent edge and intelligent cloud.
If you've not had a chance to listen to Satya's partner deck and speeches I would urge you to spend time if you want to understand sort of what we are fundamentally about. It's understanding the vision we have for the intelligent edge and intelligent cloud. Within that, the way I think about gaming and the way I think about gaming and the way I think I've increasingly thought about gaming is it is another first-party workload, no different from Dynamics or Office, that made it different and more viable and more expressive by being built on a cloud that is intelligent.
It's a workload that allows us to build a cloud that's built for different latency expectations, different usage patterns, different levels of 3D, different levels of interactivity. It's one of the best expressions of digital transformation of a business the way transactions occur in product, user-led, user-loved, if I said, wow, what do we want from every product that we ship at Microsoft it looks exactly the way gaming is.
You'd want it to have the same passion and the same emotional reaction that I get from Excel. I want everybody to get from all workloads that we build. Gaming fans love doing it and there's absolutely no reason people can't feel that expressiveness. Gaming is a great personification of what we're trying to accomplish. We will have end points. They will be made better, by the enablement of the cloud. We will have developers, which is what you call the gaming cloud, be able to utilize Azure, because we will build the best gaming cloud, because we run a first-party service.
We have great content. We know what developers want. It's the same reason I feel like owning Dynamics makes us a great partner for SaaS platforms, the reason Office makes us a great platform for SaaS providers. It makes our cloud better and richer. And I think if I were to grade myself as a CFO I would have said I wish I would have talked about gaming this way for the past five years. That's absolutely the way we've seen it when we said this is a priority opportunity for us. It also happens to be a pursuit that is played across devices. It's really user-centric, that leads itself. In many ways it plays to our strength as a platform company.
You've seen that in maybe third-party gaming in the past couple of quarters. It shows itself in our software and services KPI, which I think you're referencing, Karl, when it comes to modeling. When other companies have great success in their games we, too, can benefit as a platform that people come to to purchase and interact with Xbox. So it is a business that we've transitioned quite a bit. You'll hear us and we've done it. I think maybe -- I don't know if it's been a little over a year, talk about that Xbox Services KPI as a really important one for us. It's about our ability to continue to monetize users and built an incredibly healthy platform. I'm really proud of that team.
It's a place that I'm not sure if you've gone to many E3 conferences where they talk about AI and our research team, that team is one of the more aggressive adopters of our AI technology and one of the more important partners to our Azure team I've ever seen. It really shows itself in what we're able to provide to customers. I actually -- while I don't spend a ton of my time playing Xbox, it's a team that I'm really happy to advocate for, because they've made a world of difference for us.
KARL KEIRSTEAD: I think Phil would be proud of that impersonation.
AMY HOOD: Pretty good, for a $10 billion business I'd better be able to talk about it. That's the goal.
KARL KEIRSTEAD: I have one more for you on that. And that's the cloud gaming front. So if we could zoom in on that, because I know a lot of people on the audience are early stage or maybe further along, thinking through how that's going to play out. On the surface it seems like Microsoft is actually pretty well positioned. You have Azure to leverage. You've got, as you just said, first party content. You've got long-standing relationships with third party developers. So it does seem you're well positioned. I think the uncertainty is the timeframe for this to evolve. What are your thoughts on that? I know you're not going to tell us it's going to take off next year, but what are some of the challenges to getting that liftoff and any sense for when it can become a reality?
AMY HOOD: Well, it's sort of interesting. I actually feel it's quite realistic today when you look at some of the gaming companies globally and their adoption of the Azure platform, even before maybe we've launched very specific tools to help gamers. There's an absolute recognition that the gaming enhances experiences for end users. The cloud enhances gaming experiences for end users.
And so the more we can make that easy to use, or easy to do for developers the better off we are. We made some acquisitions in this space with PlayFab, which I think is a great and very interesting and strategically important transaction for us.
But you're even starting to see it in the early success of Game Pass, our game subscription. This is an opportunity for us to take not only our content, but other's content. Package it and make sure that people are able to play the game they love but do so in a predictable way.
It's why really do you think this is an interesting transitional moment in gaming that you're able to watch quite quickly. Both the types of games that are being played, but how they're making money. And the ability to have a commerce platform, have user centric behavior, have a platform that has broad adoption, have content, and have a cloud, I think will be a strategic advantage for us. I think you already see it in the KPIs that we have this year. I feel confident that it's not a long-dated concept.
KARL KEIRSTEAD: That's encouraging.
Can we flip to GitHub. I thought a super interesting acquisition. Microsoft has indicated pretty publicly that to oversimplify you're going to leave it alone and be sensitive to that open source GitHub community. On the other hand, obviously, you want to extract some synergies from GitHub. So maybe you could talk through, it might be premature given that I don't think the deal has closed yet, but how you plan to do that, or maybe if you can't go there broadly what the strategy is?
AMY HOOD: Why don't I just raise it up just a teeny bit, because I'll talk about -- I'll answer about GitHub, but what you've seen is a pretty consistent logic when it comes to the acquisitions we've made, and especially the larger ones. If you said, well, what as a team have Satya and I and our management team, leadership team, done in terms of large acquisitions together, we did Minecraft, we did LinkedIn, and now we've announced GitHub, which as you rightly point out has not closed.
If you went down the list and said, well, what do these have in common on the surface you might see very little. But what they really have in common is quite a bit. Number one, they're in what I believe to be structurally important and growing markets, no matter which you applied, was LinkedIn going to be an important and growing part of a professional network and a gig economy for professional identity as people and their professional identities move more and more online? Of course, of course it was on a global basis. Was Minecraft symbolic of an ability to spread gaming across mobile, PC and console in a way that hadn't been possible before? Of course it was. And is GitHub representative of what I believe will be the largest growing, one of the largest growing important groups of workers in the world? Yes, developers.
Today modern devs and sophisticated devs view GitHub as their home. And increasingly I believe growth in developers and not just incredibly sophisticated developers, but the developers and skills that everybody and every company across the world is going to need to do the type of digital transformation all of us believe is occurring across industry, we will absolutely see a growth in the number of developers on GitHub and I believe their ability and our ability to support GitHub's mission to make each of those developers as effective and as educated and as trained and as impactful as they can be with our tools at Microsoft and Visual Studio. VS Code is one of the most interesting products we've built as a company. And the more we can support and provide our tools and expose our tools to support GitHub's mission in a growing market, that's a great thing. It is a great and valuable thing.
And if beyond that you say, okay, great. The consistent point you've made is that it's TAM expansive. The additional point I made is these happen to generally also be network communities if you actually thought about them. They are connected. They tend to be actually reasonably sticky and they tend to have a communal aspect that with more contribution comes more value. It's why when we talk about how you get value from them, every time somebody says the word "synergy" I get a little nervous, because the absolute most important thing to do in a network community is to have the community guide the future, support why it exists, remember why it exists and remember why it grows. And so synergy won't come in the way I think many people normally think of the word, and we didn't apply that logic to either of the prior largest acquisitions we've done either.
The next thing I would say is, were we a logical best owner? Did we feel like each of these assets were most correlated to who we are as a company? And I felt really strongly about each of these. LinkedIn with professionals, Minecraft with expanding gaming from the strong position that we had, and GitHub because for many, many years we are a developer company. When you're a platform company, you're a developer company. And this speaks to that
And so I feel very good about GitHub. I look forward to it getting closed. I could not be more thrilled with the leader we've chosen. Nat Friedman is absolutely the right person to focus on making GitHub great, keeping GitHub what it is, because what it is is what we wanted to buy. And I am quite excited about what it brings to us, but more importantly what it means to the future of development.
KARL KEIRSTEAD: That was helpful.
Maybe, Amy, in our last six or seven minutes, I would love to hit you with a couple of financial questions if I could?
AMY HOOD: Sure. I think those other ones were, too, but you're welcome to ask me more.
KARL KEIRSTEAD: Perhaps these ones are slightly more so. So I feel like the messaging from you and the Microsoft team as we look into fiscal '19 on the broad question of growth and margins is that it is tilted a little bit more towards the growth camp where it feels like a lot of your larger businesses are performing well and this is the year to focus on that rather than focus on driving material operating leverage, and is that broadly speaking directionally at least the right framework for fiscal '19?
AMY HOOD:$nbsp;I'm not sure that's a new framework. In FY '18 we were pretty focused on growth. We had continued to invest in the areas that we felt had expanding TAMs and strong positions and an ability to land as revenue. I don't think that's actually achieved for us as I look into '19, where we see expanding TAMs, where we opportunity, where we feel well positioned, I didn't feel constrained in investing before and I continue to not feel constrained in investing going forward.
If you take a step back and look at the OPEX guidance I gave of 7 percent, if you think about just cost of living, that is not a massive OPEX number. So I don't think I was meaning to send some deep message that we're not continuing to focus on what we've always focused on, which is how can we continue to work the portfolio to get the highest ROI out of no matter what the number is we're investing.
And if you actually even reflect back on the guidance that I gave in July, and I was very clear to say, I expect FY '19 operating margins to be slightly up. So I'm a believer that this year the message is actually far more consistent maybe that you would see it as different, which was I feel really good about our execution. I feel great about the markets we're in. I want to make sure we invest to take and capture opportunity as revenue. I want to focus on customer success. I want to see that land as customer satisfaction. I want us to continue to focus on gross margin improvement in each business that we're in, and I want us to stay focused and not lose any passion around making sure every dollar we spend is spent on the most and highest ROI that I see possible.
And so I'm not sure my mindset is wildly different. I actually might describe it as I'm pretty consistent.
KARL KEIRSTEAD: Okay. That's helpful. And maybe time for one more, it's a question I'm getting a little bit lately and that's around capital allocation, Amy. Do you mind sharing with us your current views around use of cash apart from the obvious, which is that you'll restart the buybacks post GitHub, which I think we know. But what's the framework that you would encourage us to think about around capital allocation these days?
AMY HOOD: We've been very consistent on this point. We view capital returns as a meaningful component of total shareholder return. We've believed that for a long time, especially in the past few years we've focused on using both buyback and dividends the tool to do that or one of the tools. My first and as you might imagine mostly daily existence is to focus on how we're investing the capital for organic growth, continuing to look for inorganic opportunities whether they be small or any other size. You've seen us use that as well as a tool. And I feel very good about the returns we've gotten from especially our larger acquisitions that we've made inorganically as a use of cash.
I don't see any difference in how we've continued to view that. I think it remains an important component that Satya and I as well and the management and the board focus on. But I don't think it's changed today. It's more a commitment to consistency rather than a new model.
KARL KEIRSTEAD: That makes sense. Well, we've covered a lot of ground. Congratulations, again, Amy, on this amazing success story with Microsoft over the last couple of years. And I'm acutely aware that you don't attend that many investor conferences, so I'm honored that you came to Vegas for ours.
AMY HOOD: I was happy to be invited, and I think you've done a really nice job. And so I appreciate your partnership with our Investor Relations team in terms of us making continued progress.
But I want to thank everybody. This has been -- I mostly feel privileged to be in the seat I'm in. It's a great company that I get to actually talk about on 125,000-plus people's behalf. And so while it's really nice to be here and represent them, I want to thank you all for both following the story, spending time on us, and mostly helping us continue to get better. So it's really important that you continue to give us feedback through our Investor Relations team. That's how we get better at talking about our company. It's how we get better at disclosing the right KPIs. And so either give the feedback to Karl and he'll give it to the team, but it's really important to us to continue to learn and get better.
So thanks to everybody for your support, and I'll see everybody soon, I'm sure.
KARL KEIRSTEAD: Awesome. Thanks everyone.
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