>> GETTING BETTER AS NEW
NUMBERS COME OUT.
MARIA:  YOU THINK EARNINGS GET
BETTER SECOND QUARTER.
>> MICROSOFT REPORTING THIS
TRANSFORMATION WITH MICROSOFT
CLOUD TECHNOLOGY I SPOKE
EXCLUSIVE WITH SATYA NADELLA
FOR TAKE ON PARTNERSHIP
PRIVACY FACING TECHNOLOGY
WHERE MICROSOFT CAN CONTINUE
COMPANY REALLY COMES THROUGH
IN THE MOMENTUM WE HAVE IF YOU
THINK ABOUT IT, WE EMPOWERING
ON THE PLANT OUR SUCCESS GENT
OBJECT CONSUMERS SEEKING IN
DIGITAL WORLD WALMART
PATTERNED
PATTERNE
DTTERNE
DEEERNE
DEEPLNE
DEEPLYE
DEEPLY
WITH US WALMART STRATEGIC
ARE CALLING THIS A 4 1/2
TRILLION-DOLLAR OPPORTUNITY
THIS TRANSFORMATION TO
DIGITAL.
>> IT IS THINK ABOUT IT FOR
ALL SUCCESS OF DIGITAL
TECHNOLOGY COMPANIES,
PERCENTAGE BASE WORLDWIDE GDP
EXPECTED TO GO TO 10% NEXT 10
YEARS BUT REAL QUESTION IS,
WHAT IS THE OPPORTUNITY FOR
THE OTHER 95% OF GDP OR 90%
GDP HOW ARE THEY GOING TO USE
THE DIGITAL TECHNOLOGY, DOING
SOMETHING DIGIT COMPANIES IN
RIGHT WHETHER RETAILER LIKE
WALMART HEALTH COMPANY, 81
ACROSS ALL INDUSTRIES ITSELF
GOING TO LOOK TO DIGITAL
TECHNOLOGY TO BRING ABOUT THE
>> FOR WALMART THAT IS
CRITICAL TRANSITION AS IT
BATTLES WITH AMAZON, OF
COURSE, HAS BEEN INCREDIBLY
AGGRESSIVE IN THAT CASE TELL
ME ABOUT I.T. BUDGETS TODAY
ARE YOU SEEING THAT INCREASE
IN TECHNOLOGY SPENDING?
I KNOW THAT THERE WAS A PRETTY
GOOD LIFT WHEN THE PLAN CAME
OUT IN ANTICIPATION OF THE TAX
CUT PLAN BUT THERE WAS WORRIES
THINGS HAVE SLOWED DOWN, ARE
YOU STILL SEEING, I.T. BUDGETS
INCREASE ARE YOU SEEING THE
KIND OF SPEND THAT YOU WOULD
EXPECT?
>> NO, ON A LONG-TERM BASIS IF
I HAD TO SORT OF LOOK AT IT
TAX BANNED DIGITAL SPEND TO
INCREASE EVERYTHING THAT WE
THINK ABOUT EVERY PLACE
DIGITIZED RETAIL, OUTLET OR A
HOSPITAL A STADIUM, YOUR HOME
OR YOUR WORKPLACE INCREASING
COMPUTING GETTING EMBEDDED IN
THE REAL WORLD EVERY
EXPERIENCE DRIVEN BY MORE AND
THINK OVER THE WORLD OPERATING
EXPENSE AS WELL AS, DIGITIZED
IN CASE OF WALMART GOOD
IN CASE OF WALMART GOO
IN CASE OF WALMART EXO
IN CASE OF WALMART EXAM
IN CASE OF WALMART EXAMPL
IN CASE OF WALMART EXAMPLE
AMAZING LEAD ANYTHING OFF-LINE
CUSTOMERS BUT THEY ARE
INCREASING ONLINE.
>> IS PRIORITY FOR COMPANIES
TODAY WHETHER BIG OR SMALL,
BECAUSE LET'S NOT FORGET
MICROSOFT IS REALLY, THE
PRIORITY FOR SMALLER MIDCAP
MIDKAEPZ AS WELL IN ADDITION
TO GE WALL MARTS IS SPEND
PRIORITY IN TERMS OF SECURITY
IN TERMS OF CORPORATE
SPENDING.
>> NUMBER ONE PRIORITY IS
AROUND PRODUCTIVITY AND
DIGITAL TRANSFORMATION.
>> WAS IT THE TAX CUT PLAN
THAT ENCOURAGED YOU TO TAKE
SOME MONEY BACK FOR U.S.?
>> I MEAN I THINK WE HAVE HAD
A PRETTY BALANCED APPROACH,
FIRST AND FOREMOST WE ARE
BEING VERY AGGRESSIVE SPEND
NERZ R AND D DOLLARS,
OPERATING EXPENSES IN UNITED
STATES LOOK AT WHAT WE DO, WE
DO 30 PLUS BILLION DOLLARS
SPEND EVERY YEAR, AND MAJORITY
58% IS RIGHT HERE UNITED
STATES, SO WE CONTINUE TO BET
ON THE ORGANIC GROWTH AND
INNOVATION, BUT WE ARE
COMPLEMENTING THAT, PENDING
ACQUISITION HUB, MINECRAFT
LOOK FOR ASSETS THAT CAN
COMPLEMENT WHAT WE DO WELL AS
WELL AS DIVIDENDS BUYBACKS WE
THINK HAVING THAT APPROACH,
WHICH IS SOME SENSE MORE
PATTERNS BUSINESS ABOUT CYCLES
IMPORTANT AT THE END OF THE
DAY WHAT MATTERS IS CONTINUE
TO GO DRIVE INNOVATION GROWTH.
>> YOU HAVE BEEN IN CHINA A
LONG TIME SOMEONE SAID TO ME
MICROSOFT WINDOWS MORE THAN
90% DO NOT PAY FOR IT, YOU
HAVE BEEN DEALING WITH THIS
FOR A LONG TIME WHAT THANK YOU
TELL US ABOUT IT.
>> ONE OF THE FUNDAMENTAL
DO WE IN SOME SENSE ADAPT
BUSINESS MODELS THAT ALLOW US
TO SUCCEED THERE I THINK
INTELLECTUAL PROPERTY NEEDS TO
BE PROTECTED IN CHINA INTEREST
GIVEN NOW BIG INTELLECTUAL
PRETTY CREATORS WE HAVE A GOOD
DLOOG WITH CHINESE GOVERNMENT
I THINK THE VOICES OUT OF
WASHINGTON ARE ALL GOOD WE
WANT FAIR TRADE, BETWEEN
COUNTRIES I BELIEVE THAT THE
NEXT 10 YEARS 20 YEARS 30
YEARS WHATEVER YOUR TIME FRAME
ONLY CREATE AN KWILQUILIBRIUM
BETWEEN THEMSELVES BUT REST OF
>> FIRST OF ALL, MOVE TO
CLOUD, YOU SEE A SHIFT, IN HOW
PEOPLE ACQUIRE INTELLECTUAL
PROPERTY BY ITSELF I THINK
VERY HELPFUL BUT, OVERALL, I
THINK EVERY COUNTRY THAT IS
GOING THROUGH A MASSIVE
TRANSFORMATION INTERNALLY
SOCIALLY ECONOMICALLY I AM OF
THE BELIEF WHEN YOU GET TO A
CERTAIN LEVEL OF GDP, AND GDP
GROWTH, COMES WITH IT
>> YEAH I MEAN MOST PEOPLE
UNDERSTAND THE ISSUES AROUND
DIFFERENT ARE YOU EXPECTING
IMPACT RESULT OF TARIFFS.
>> FOR US WE DON'T SEE
ANYTHING TODAY IN OUTLOOK THE
OVERALL I THINK, ENTIRE WORLD
ORDER SO TO SPEAK THAT WE'VE
SEEN IS BASED ON PREDICTABLE
MODEL HOW GOOD PRODUCED
DISTRIBUTED HOW YOU ADD WORK I
AM HOPING WE COME BACK I I
THINK THE PRESIDENT SAID WHAT
THEM, THAT WE COME BACK, TO A
STABLE ENVIRONMENT.
SILICON VALLEY AFTER CAMBRIDGE
ANALYTICA FACEBOOK PEOPLE
HOW WILL YOU ADAPT.
>> PRIVACY IN MY OPINION IS
NOW A HUMAN RIGHT, THAT IS HOW
I THINK OF IT WHEN IT COMES TO
OUR PRODUCTS AND SERVICES, AND
THE COMMERCE CONSUMEERS DEMAND
EXPECT IT THAT IS WHY WE ARE
VERY YOU KNOW, AGGRESSIVE, AND
IN TERMS OF OF IMPLEMENTATION,
AND WE DON'T THINK OF GDP AS
ONE POINT IN TIME REGULATION,
IT WILL REQUIRES ANNINGS ON
COMMITMENT TO COMPLY AROUND
PRIVACY I THIS I THAT I FULLY
EXPECT MORE COUNTRIES JEFF
