Envisioning Tomorrow – 2019 AT&T Business Summit
Well. Good morning everyone. With. That introduction, Satya, I'm thinkin, maybe we turn this into a personal, coaching moment you. You've. Had a lot of success, of Microsoft, and certainly as a CEO over the last five years the change that you have driven has. Been nothing short of spectacular. And we've. Titled, this segment, today, in front of this. Illustrious audience. Which, I'd, be remiss if I didn't say is. A collection, of our joint customers so, I'm sure many of your pride and joy, customers, are out in the audience as well as ours that. This, this segment is called envisioning, tomorrow and. Taking. A moment to look at where technology, is taking. Us and as. The leader of one of the world's largest technology, companies. Could. You share some thoughts about where you see technology taking, us and how these leaders, in the audience should. Frame up this. For their own enterprises. No first of all Geoff thank you so much for. Having me here it's great to be here at this conference, with all of you and as you said a. Lot, of the. Folks, in the audience are, mutual. Partners, and we had very. You. Know grounded. In how. Does technology. And technology, innovation. Ultimately. Serve, the. Needs of transformation. And, when I think broadly though of, the, shifts, and this backstage, both of us listening, to Tom Friedman, and his all face awesome, to sort of listen to how he summarizes. What's. Happening, I broadly. Think there. Are three, fairly. Major. Technical. Shifts. That. Are happening that, ultimately, the leaders in the room will have to harness. To. Power their sort, of ultimate, business transformation, but the first one is computing. I've never seen anything like this in my 28. Years or, so in the industry. Where. The, power of computing. Even. Though mores law in some sense is really challenged. We. Are able to overcome that by, just the sheer ability. To, disaggregate, and, then aggregate, back in different ways in a ubiquitous way so there is the cloud there is the edge and this is something that we'll come back to but, the notion that there is Elastic. Compute, distributed. Computing, wherever, in every place in everything. Computing. Is getting embedded, in the world, then. One the, next question or the next big trend is if you have all this compute, there.
Isn't An application. And experience a. Business, process activity. You'll do that's, not going to be infused with AI I mean AI simply. Think, of it as a compute, that, reasons, over large amounts, of data and that's, what's going to power pretty, much every experience, and so AI and, its, implications. Are, going to be pretty profound. The. Last big. Technical. Shift, I see is. You. Know we all have devices, in fact we all have multiple, devices I, think. In four years five years ten, years we're, going to really not think about just, one device we're, going to think about multiple. Senses. And multiple. Devices you're. Going to be able to transition, from one device to the other so. In other words we're gonna finally put back people at the center versus. The device at the center and we. Will have a true, multi, sense multi device experience, and you can see all the beginnings, of it we're gonna launch minecraft earth soon. In the United States it will in fact launch today in UK. It's it's so awesome to see that game and how it's played read wait there is the real world there, is the virtual world they blend together and, that augmented, reality vision. Across. Devices, is sort of the thing that I see going forward so these three trends, compound. Computing. Is everywhere, every, experience, is powered by AI and, you, live in a multi sense multi-device. World and the question is what, does it mean for retail, what does it mean for, hospitality, what, does it mean for healthcare, or, what does it mean for broad consumer, gaming all of, those are going to be the transformative, trends. Yeah, I think everybody here probably agrees with that certainly. If you've got young, children and. I don't mean that to be the employees, of the businesses, that you support, but. Actually family members who are consuming. Just. An ever-increasing number, of gigabits. On the network I think, there's probably two norms, that I've come to appreciate in, my tenure at AT&T and, that is the. Demand for high quality content, is. Ever-increasing, and the need to deliver that content in, the, most efficient, manner in, the, right way is also increasing. And for, us at AT&T. We. Kind of tackle, that every, day when we wake up in the morning I think, the last stat that I that. I read Satya, was we manage roughly 400, million edge points, in our, broad scale Network, ranges. Anything, or anywhere from a massive. Connection, to an enterprise customer to enable their business all the way down to. A wireless device and, we. Always get this question about, how the network is transforming. And how this compute, is moving its way from. What has historically been big. Data centers, with the web scale players, but. Where the users, are now actually, out in in, in the field out closer, to the edge is where the demand needs to be and this, is some of the work that your, team and and my team has been hard. At work trying. To expand, and explore over, the last several, several. Months since we announced our. Partnership. Back in July, maybe. Before. We get there though maybe take, a moment you know you transform. To Microsoft, from within and, I. Think your story is fairly well known but, for the audience maybe spend a moment and talk about how. You actually, created. That change, inside. Of Microsoft that. Has resulted in such great. Success for you as a company. You. Know I'm. A, consummate. Insider, I've grown up at Microsoft, all my professional, life. So. You. Know the way I came at it is I. Felt, in fact I was taking over from, you. Know Steve was not a founder, but he had found, status, in, the company bill in a Poland bill started. Microsoft and, Bill and Steve built Microsoft. And I you, know as a mayor model CEO, I felt. I needed to. In. A much more ground, the company, in a sense of purpose, to, start with and and, that's, what the in fact led me all the, way back even to the very origin, of the company, which is you know Microsoft got started, as building the basic interpreter, for the Altair, in nineteen seventy five, so, we were a tools company, a platform, company that sense, of purpose, around, creating. Technology, so that others, can create more technology, I mean in 2019. Everyone. Here is a software, company you, are going to build your own software, IP and so, in some sense if we stick, to what we were really meant to do which, is create technology. So that you can create technology, will be okay and so, that's what I went back to saying okay let's have that let's be proud of that sense of purpose let's, be grounded, in that sense of purpose and in. Order to do that though to. Your point we needed to have a culture. That enabled, us to pursue. Our sense of purpose not. Do things out of enemy not because others, are doing something and having success what is it that the world wants, Microsoft.
To Do in a, unique way and that culture, I was, inspired by a book I had read, perhaps. Five years before I became CEO by Carol Dweck at Stanford called, mindset, and I, read it because my wife had introduced video add more in the context, of my children's, education. And, you, know that book really changed, our lives because, it, has this concept if you go to school you go into any call a classroom and you have two, girls or, two boys one. Of them has more innate capability. But. Is annoyed, all the, other person, then person, is. God. Less innate capability, but is a learn at all what, happens, in life is the learn it all does better than the know it all and that, applies to CEOs that applies to companies, and so, we said let's take that growth. Mindset. More. Importantly, the, ability to confront. Your fixed. Right I mean in Microsoft sometimes people come to me and say Satya we found the ten people who don't have a growth mindset and I said that's not the point the point is not to go looking for those ten people it's, more, important. For each of us to be comfortable. Confronting. A fixed mindset moving. From these know-it-alls, to learn at all and that in. The. Ultimate, analysis, I would say is the. Necessary, condition. Right. You need a culture. That allows you. To. Create something new to, question. Status, Co give you the, everyday, courage, to move forward and so. Those are the two things I've come to realize much more what I was close to six years in the job that as a CEO, you. Have to as a leader you. Have to focus, on that renewal. Of that sense of purpose and culture. Every day because, that's what will then allow you to even pick the right strategy, the tech trends, and everything, else but without these two pillars you're, not you're, not set up to get a lot of other things right yeah. I'll tell you that took, a lot of courage inside of Microsoft I might imagine and, your leadership is, evident. I must. Admit how, proud. I am of AT&T and, the work we're doing with your company, it, spans, beyond, just, the tech stack and, the work we do trying.
To Bring a new way to bring products, to the marketplace but, it extends, into things like community, we're. Saying. Thomas, had mentioned in his prior segment. Corporations. In America, are being held to a very high standard and. It's. Around. Employees. Around customers, and in the ultimate around, society, itself and I'm, really proud of the work that you've, done and, that, we're trying to do together to. Bring, products. And technology, to parts, of society that, are in need I. For, one can tell you that we've used tool. Sets from Microsoft. To help train, our organization. And teach them new skills as, well. As the, partnership, that we have trying, to address the homelessness, even. Here in Dallas, an hour an hour calling app which. Is a. Technology. Platform working. With Microsoft that, enables, homeless, people that are unfortunate. To get access to care, and services that. They otherwise might not know about through. The use of technology. And. So really the you, you, walk the talk is what I wanted to say and I'm very proud to. Our partner with Microsoft. As, you think about the way the cloud has evolved, and the. Things that you have done to expand, the, importance, of cloud in, today's. Day and age what, kind of advice would you share or, watch outs or opportunities. For the audience you, know. One. Of the things some I. Think. A lot about is. If. We you, know use this term that every company is a digital company every company is a software company what does it mean like how does one, create. That, digital, strategy. Inside. Of any enterprise across. Any, industry in any vertical, or in industry. And. The formula, at least. I think, about is, what, I describe as tech intensity, and the inspiration, for this came from there's. An economist, at Dartmouth, by. The name of Diego, Coleman who did I am one of the best. Longitudinal. Studies, of technology. Diffusion, it was mostly studying, what. Happened during the industrial revolution how. Did technology, get created, and how did comparative, advantage, gap you know come about when essentially, his. Conclusion, was that two. Key things need to happen, one. Is in, this, context, what he thought about in conquer, around countries, I think applies to companies each. Of you will. Need to, get on the efficient. Frontier of, what, is new technology right so that means you should be in fact first, and foremost, the. Best. Adopters. Of new tech. And. Like back to your learning, always continuously. Correct and it's the last. Thing you want to be is out of position both, in terms of cost structure. And other and I mean you know you lose time if. You're not, basically taking what is available, the cloud is a great example at, this point if, you take cloud. Its, efficiencies. Its innovation. That, can be a massive accelerant. To you so therefore how do you adopt, and it's got to be evergreen right this is not a one-time I adopted. Something and then it means instantly, becomes legacy, that's in fact a big mistake so you've got to really have a, way for you to adopt technology. Fast. And that means you need to even have a lot of trust and really unpack that later but we have to have. Really. The ability to get the latest technology. But here is the key thing you. Need, to build your, own digital, IP, in. Some sense you've got to build your own proprietary. IP, on top of what you brought into your organization, right. Like one of the work, the things that you don't want to be caught up is spending. Your scarce, resource. On. Essentially. Building, something that can be available or that is available as a commodity so. You want to bring in the commodity, and build your proprietary IP interesting. Data, point here is in, fact LinkedIn. I found, this in data in LinkedIn today. The, number, of software, engineers, being hired, outside. Of, what is considered the tech industry. Is, greater. Than. The, number of software engineers, are being hired in the tech industry right in fact the crossover, happened in 2017. And so. That means you're already doing, you. Know I pea creation. The question is is it most leveraged. And. That I think is the key and of course you've, got to not only adopt, and build capability. But you also have to do this with trust all, around, right there are lots of nuances here trust, in who, are your suppliers, you. Can't have a bunch of suppliers who turn around and compete with you so.
You Have to have a real, understanding, of, even the game theoretic way of how digital network, effects play out, Trust. In technology, that is you've got to produce technology. That your customers. Are gonna trust you so, that, to, me I think is the you, know what I describe as tech intensity. Is that, a simple formula to a tech adoption. Time's tech capability. ^ Trust, is. What, I feel, every company, needs to do to become a software company, yeah. Let's let's, take that a little bit further and maybe kind of weave in some of the work that our teams are doing together and the. Edge our. Network edge compute, strategy. And 5g, because I think. Speaking. On behalf of AT&T, you know we're storied, company were, rather large we, operate an. Amazing, network and at, times we like to invent things on our own, if. It wasn't invented here, it typically, is not good enough was the old mantra, and so part of our change. Formula, within AT&T. Is to recognize, trusted. Partners, like Microsoft that. Have nailed the. Cloud scale, with a juror and the right tools that we need to, improve, our performance and. Delivering. Service, to. This. Great group of customers and, many others around the around the world but. At the same time how do we bring the best of what Microsoft, has and, the best of what eighties. Deep, network. Technology. Has to offer and, and. Everybody always asks me the question I don't know if they ask you you know tell me about 5g, what's 5g really going to do how is it going to transform. The. The economy, and the world and, the product said and maybe, spend a moment let's talk a little bit about how, your, company and AT&T, were coming. Together to bring some real neat products, and services, to the market yeah no first of all Jeff we're very very, excited about this partnership and it's sort of it. In fact speaks, to that tech intensity. Right which is what is it that we can bring to the table what is it that you can bring to the table and then everyone in the audience so in some sense this is not about any one of us being, the platform company, or the software company, or the digital company it's all of us collectively. Doing. Things that make it, possible for. Us to run our businesses, as a, cohesive, set, of you. Know components, that come together so like take two you, know one of the things that's been exciting, to me is to see in the early. Promise. Of what. You're building, out as your platform, with 5g, and the. Mobile edge compute, and the network edge compute, it's, just transformative. Once you start saying there is low latency. Access, to. Compute, I think it changes, everything. In, fact one of the first, demos, we did was essentially. For. Drones. In cities how. Do you do the moral equivalent of an FAA. To. Be able to coordinate their. Flight activity, right that requires, absolute. Low latency. Coordination. At the edge and so that is one of the developers, we enable with your network and our, edge computing, api's and that's how they built that in. Fact recently, we. Brought one of the services that we built for Xbox called play fab, essentially. It's an ability for a game developer. To monitor, what's happening in the game I mean every game by the way is like an economy, when. A game developer, ships a game it's not like oh I here is the game they literally, are monitoring. The game in a real-time basis. And then changing, the game it's called live ops and we. Now have again. That live ops service, at the. Edge on the AT&T network for, developers, to write new, types of applications.
For. Any game they launched right so these are the types of things but now let's put it together let's, say in a commercial, context, take, retail. When. You're walking on a retail, aisle and rich shelves, to, me that's a compute, device and so, the question is where, is the compute, where is the AI reasoning. Happening, and so this is where I think whenever, the. AT&T, and Microsoft. Going together. To, any, of our retail partners and, enabling. Their stores, to become, really the edge compute. Of. The combined. Network, is probably, where we're going to go same thing with hospitals, same thing with manufacturing. Plants, so. It's a pretty exciting, future. It's. About developers. It's about business decision, makers and how they envision, some of these scenarios I mean. It gets us pretty excited, when you think about the history of everything, is headed to Wireless. We. All know that the. Concerns. Around security, and, privacy. Is. Becoming more and more of our daily discussions. And, what keeps us up at night to ensure that we've got secure. Connections. With this very valuable data I can. Remember a time when we first launched, our wireless. Industry. And the throughputs on that. Network, were measured, in kilobits, and we were celebrating if we got double-digit, kilobits, and you fast forward to, today and it's 200 megabits maybe latency, is in the 20 millisecond, range here. Next year the industry will launch nationwide. Coverage of 5g, and you'll see that millisecond. Performance, improve, to. Something that is virtually. Faster. Than the brain can process which. Opens, up a real. Canvas. For engineers, and product developers, to do some really interesting things and, what. I'm most excited about, is the way we've approached, this partnership, with Microsoft, our core network teams, and building. Of the 5g, standard, in the new architecture, we're, not thinking about this as a finished, product or a service that, is so mission, specific. That we kind of paint ourselves in the owner but, rather how do we open up the network, along. With ours your compute, components. With. With, you to. Your developers, right and kick. This to the app developer community. So we can find ways to, really. Reveal. The value, of what this very high, speed low late network, can. Do in areas like retail. And others and what, we think about and. And in our back rooms as, we put these plans together is less about what, my. Company can do for Microsoft, and what Microsoft. Can do for AT&T but, we're thinking how can we make our joint. Customers. More. Competitive. Against, your competitors in, this. Space as, you mentioned there are big scale players platform.
Players Who, are eating around the edges of many. Of our businesses, how do we enable them to be faster. Stronger and, healthier to, compete against that maybe maybe spend a moment, surely it's. It's an interesting thing. In. A world where everyone's. Building. Out these digital, platforms. Right every retailer, is every, hospital, is every industrial. Company, is, one. Of the keys for us is what's sort of a. Way. For the. Economics. Here to work. In. Fact I think one of the fundamental, things one has to recognize is they're two different, business models at play right now there. Is platform. Economics, and there is what I'll call aggregator. Economics. They're very very different. Platform. Economics, in, fact I sort of consider ourselves building. Platforms, and technology platforms, they're. Only stable. If, people. Building, on top of your platform, are, successful. In other words you. Can't have platform. Economics, if people are not able to derive value from the platform, and be successful in whatever they do so even in our partnership, how are you benefitting, how, in fact when the two of us produce something how is the retailer, benefiting that's right that has to be the only you know that's the only way the platform can be stable, aggregator. Economics, is slightly different because aggregator, economics, are where, you are really, both on the demand and on the supply, you. Can even pick play pretty game theoretic constructs. Of subsidized, one side for, a while in. Order to capture share and then increase prices and so on and so forth so aggregator. Power. It's. Just got many different dynamics. In some sense I look at it and say Microsoft. Will, be successful. If our customers, will be successful. And that's. Sort of what governs, in fact how we even, think about both the business model and the product innovation, and in, the aggregator, case it, depends. On who and what time needs to be successful, and that's I think something that needs to be well understood and. So. To me what is important, for us and AT&T, and that's one of the reasons why even our partnership, is super you, know where we are well aligned around it because, be both of us need everyone. In this room fundamentally. To be successful. With their digital capability, building their. Business, transformation. And what. We need to be able to do is give you the tools to build your own platforms. And that to me is I think one of the things that'll play out in the next five to ten years is a better, understanding of, digital network, effects the distinction, between platforms, and, aggregation, effects, because. Today I think people conflate the two as just one but they're very distinct, well. Satya, I really do appreciate you taking time to come participate. In our summit, and I. Wish you all the best of success on. Your next journey and I'm looking forward to co-piloting. The. Future here with you and I hope that we'll be able to announce some really marquee products, and services. Available, in the marketplace and not-too-distant. Future No thank you so much as different round of applause thank you. Thanks. For watching for, more videos from AT&T business, click, Subscribe.