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Looking back on an unprecedented quarter: customers embrace technology to advance industry innovation, respond to COVID-19 and plan for the future

It is predicted that by 2030, there will be a $4 trillion opportunity focused on new mobility services, as the automotive and transportation sectors converge.

This year has been unlike any other. As we welcomed the new decade, we witnessed industry-leading innovations by our customers and partners at the Consumer Electronics Show (CES) and National Retail Federation (NRF) conferences in January. We announced ambitious new sustainability initiatives and how we plan to help our customers reduce their carbon footprint. Then COVID-19 changed everything, disrupting business as usual and forcing organizations across industries to navigate a new landscape. As we work through the effects of the pandemic together, it is incredible to see how technology is enabling our customers to be agile and maintain business continuity. We are also seeing them adapt and scale to sustain critical products and services — all while preparing for a post-pandemic comeback and the new normal.

Microsoft CEO Satya Nadella delivers the opening keynote at NRF 2020, sharing his thoughts on the future of retail and how technology can help the industry transform.

Groundbreaking innovation across industries

The first quarter of calendar year 2020 began with a strong focus on what is next in automotive and our participation at CES, a global technology event. The industry is transforming at an incredible speed, quickly shaping the future of mobility and the automotive experience by using cloud, edge, IoT and AI services. Faurecia, a leading automotive technology company is using the Microsoft Connected Vehicle Platform, Teams and Project xCloud to help people stay connected, productive and entertained while in the car. LG Electronics is working to build its automotive infotainment systems with our Azure cloud and AI services, and ZF is transforming into a software-driven mobility provider using Microsoft’s cloud services and developer tools.

At NRF, the world’s largest retail conference, Satya Nadella delivered the opening keynote, sharing ways we are working with retailers to help them better understand their customers, empower employees with digital tools, create a more intelligent supply chain through co-innovation and ultimately reimagine their businesses. During the event, Walgreens Boots Alliance announced it is piloting an immersive mixed reality training program for its employees using HoloLens 2. IKEA shared how it is deploying Microsoft Teams to more than 70,000 workers (including first-line employees) to increase productivity, and H&M shared how Azure IoT is helping propel its continued work toward a more sustainable future for the fashion industry by offering smart garment recycling bins in select stores around the world. Canada Goose, one the world’s largest makers of luxury performance apparel, showed how the company is building on the principle of the endless aisle using Dynamics 365 Commerce software to offer its entire range of products to customers without any physical stock in the store, and Home Depot bet on Microsoft PromoteIQ to help maximize the nearly 170 million monthly visitors on its e-commerce site with the PromoteIQ end-to-end commerce marketing platform. Samsung announced a new smartphone with a push-to-talk button that will leverage the new Walkie Talkie feature available in Microsoft Teams, providing first-line workers like retail employees easier ways to communicate on the job.

In February, Anheuser-Busch InBev, Bosch Group and ZF Friedrichshafen signed up as steering committee members of the Open Manufacturing Platform — founded by Microsoft and BMW in 2019  — to help manufacturing companies accelerate innovation at scale through cross-industry collaboration, knowledge and data sharing.

The emergence of a pandemic

As the fight against COVID-19 continues, I am encouraged by how customers are using technology to respond.

On the frontlines, care teams are using technology to scale their triage process to address the overwhelming number of patients needing care and to ease volume in the system. The U.S. Centers for Disease Control and Prevention released a COVID-19 assessment bot, powered by Microsoft’s Healthcare Bot service running on Azure, to help organizations screen patients for potential infection and care options. These bots use artificial intelligence to help pre-screen patients and provide guidance on care plans, reducing the burden on medical professionals. Swedish Health Services built a mobile app to help hospital staff and administrators monitor resources, protective gear and ventilator use. The app syncs with hospital dashboards powered by the Power Platform emergency response solution to help manage bed count and inventory of critical supplies while sharing the information across the region to help other health professionals prepare their facilities.

Telemedicine is also enabling healthcare providers to continue delivering treatment. For example, Microsoft Teams has allowed doctors at St. Luke’s University Health Network to safely perform more than 75,000 virtual visits with patients vulnerable to the virus, while minimizing direct exposure and preserving valuable resources like masks and gloves.

In education, we are working with schools around the world to enable a remote learning system that fosters a culture of learning outside the classroom — as schools, universities, students and parents adopt the tools necessary for distance-learning models. That includes making Teams available for free for students and educators. The University of Bologna moved 90% of courses for its 80,000 students online to Teams within three days. AI is also playing a critical role in keeping students engaged and learning. The University of Sydney built an AI-infused bot using Microsoft Azure Cognitive Services that responds to students’ questions about COVID-19, providing instant answers and access to additional resources. At Case Western Reserve University, medical students are using Microsoft HoloLens to continue immersive remote learning without falling behind in classwork. In a larger-scale effort to support educators, the United Nations Educational, Scientific and Cultural Organization (UNESCO) is launching a global e-learning initiative to minimize educational disruptions and maintain social contact.  Microsoft has joined this coalition to contribute resources and technology expertise to ensure #LearningNeverStops.

In response to the COVID-19 National Emergency Declaration, the U.S. Department of Defense (DoD) directed the majority of its workforce to work remotely and created the Commercial Virtual Remote (CVR) Environment to provide secure teleworking capabilities to millions of users across the entire department. Our continued work with the DoD will lead to the single largest tenant of Office 365 and Microsoft Teams in the coming weeks, with the speed of deployment exceeding anything before it.

A quiet Microsoft Commons in Redmond, Washington as employees work from home in the time of COVID-19.

We are working across industries to accelerate research for a cure for COVID-19 and recently announced our participation in a new consortium alongside C3.ai and top universities to apply AI toward this pandemic challenge. The institute’s work aims to slow the spread of COVID-19, speed the development of medical treatments, predict its evolution and improve public health strategies. Additionally, Microsoft joined the White House-led consortium to provide COVID-19 researchers worldwide access to the most powerful High Performance Computing resources to significantly accelerate the pace of scientific discovery. As we strive to support our customers through technology, we are also doing our part to ensure our employees remain safe while contributing to efforts to protect public health and the well-being of our communities.

Planning for the future

In recent weeks, we have shared details about groundbreaking new partnerships in the financial services sector, major league sports and consumer goods and services. BlackRock is moving its Aladdin platform to Microsoft Azure, the NBA is redefining and personalizing the fan experience through Azure and its AI capabilities, and last week, as part of our deep partnership with the NFL, Microsoft Teams and Surface were part of the technology solution that brought the first-ever virtual NFL Draft to life. Just today, The Coca-Cola Company announced it is standardizing business operations on Microsoft’s cloud to modernize how the company engages with employees and customers. In addition, in late March, we announced an agreement to acquire Affirmed Networks, a leader in fully virtualized cloud-native mobile network solutions. This acquisition, which closed last week, will allow us to evolve our work with the telecommunications industry, building on our secure and trusted cloud platform for operators, while we continue to focus on interoperability and strong partnerships with suppliers, emerging innovators and other stakeholders to extend cloud-based, software-defined networking into the world of 5G connectivity.

I am deeply inspired by how our customers and partners across every industry are harnessing digital tools to navigate an uncertain landscape. While COVID-19 has disrupted lives, the resilience we see today gives me confidence that we will be prepared to build a new normal together, full of opportunity and powered by innovation and ingenuity.

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From tech adoption to tech creation: Customers across industries are using advanced cloud and AI tools to build their own digital solutions

In December, we shared the State of Tech Intensity study, which highlighted a trend we are seeing in our work with customers: many organizations are going beyond simply adopting the latest tools and technologies and are building their own unique digital capabilities. This shift is accelerating change in these organizations and helping them propel their businesses forward in new ways. Leveraging innovative technologies like artificial intelligence (AI), the Internet of Things (IoT) and machine learning built on Microsoft’s cloud, there were numerous examples this past quarter of initiatives our customers across multiple industries are pursuing — and how many are putting technology at the heart of their business strategies.

Rendering of car chassis
Example of software-driven connected chassis functions by ZF Friedrichshafen.

In automotive, manufacturers are redefining experiences to shape the future of mobility, while also helping address challenges that conventional computing alone cannot solve. Through our partnership with Ford, we’re exploring the potential for using quantum algorithms to solve urban traffic congestion. Bosch is leveraging Microsoft Azure data services to create one of the world’s first connectivity-based, wrong-way driver warning solutions aimed at helping drivers avoid serious accidents.

Global technology company ZF Friedrichshafen is transforming into a provider of software-driven mobility solutions, leveraging Azure cloud services and developer tools to promote faster development and validation of connected vehicle functions at a global scale. Ericsson is integrating its Connected Vehicle Cloud, which connects more than 4 million vehicles across 180 countries, with Microsoft’s Connected Vehicle Platform to accelerate the delivery of safe, comfortable and personalized connected driving experiences with our cloud, AI and IoT technologies. We are also helping Scania build a modern workplace foundation to break down communication barriers and meet ever-growing security requirements through cloud-based collaboration tools like Microsoft 365 and Teams.

Maersk container ship
Maersk strengthens a global operation with fast thinking and an integrated security solution.

In transportation and logistics, Danish company Maersk, one of the largest container shipping and supply vessel operators in the world, is leveraging Microsoft’s security capabilities in Azure and Microsoft 365 to streamline and automate classification for more than 6.6 million documents every month, improving communications and reducing the risk of data loss and regulatory non-compliance. Maersk has also implemented Identity Protection to further enhance its security posture.

Two people in KPMG office
KPMG’s digital shift fuels AI-empowered audits and more, reducing risk across every industry.

In highly regulated industries like insurance, where regulatory compliance and high security standards are a top priority, customers are choosing Microsoft as their trusted cloud provider to help ensure these needs are met while building new digital capabilities. KPMG is bringing the latest advances in cloud and AI to highly regulated workloads in tax, audit and advisory. This move is helping its clients achieve greater accuracy and decision-making capabilities, increased productivity and cost efficiencies with tools such as Dynamics 365 and Teams. German-based Allianz, along with our partner Syncier, is reimagining the insurance industry experience by creating a new cloud-based marketplace built on Azure with customized platform solutions and related services tailored to the industry. Automobile insurer GEICO is turning to Azure to modernize its internal business applications and create a frictionless experience for its customers, from real-time updates to performance and security. AXA, an insurance provider spanning more than 60 countries, is reimagining how it engages with its 105 million customers around the globe using Microsoft 365 productivity tools for its workforce.

In the public sector space, we appreciate the opportunity to work with the Department of Defense to develop and deploy their general purpose enterprise cloud infrastructure. Under the Joint Enterprise Defense Infrastructure (JEDI) contract, we look forward to helping the DoD bring the latest technology to our men and women in uniform in the years ahead.

Photoillustration of NYC
Businesses are connecting people in new ways, from enhanced productivity to cloud transformations to helping people discover their favorite music and video.

Our customers in communications, services and media have a unique opportunity to meet the growing global demand within their industries — by advancing their business with cloud-centric strategies. Telstra, Australia’s largest telecommunications company, is using Microsoft Teams and the Microsoft Power Platform to work more collaboratively across the organization. They are also leveraging insights from PowerBI to break down data silos and create a unified source of truth to help meet the needs of more than 18 million customers. Japan-based NTT has chosen Microsoft Azure as its preferred cloud platform for modernizing its global IT infrastructure and customer solutions in the areas of advanced analytics for cybersecurity threat intelligence and the hybrid-IT management platform. Our strategic collaboration with Nokia will apply our cloud, AI, IoT and machine learning expertise across mission-critical networking and communications to drive economic growth and productivity for both enterprises and service providers. We also further expanded our partnership with AT&T by announcing our first joint-offering, AT&T Network Edge Compute (NEC) technology, which weaves Azure services into AT&T’s network edge locations closer to customers, unlocking new scenarios for edge computing across industries.

KKBOX Group is harnessing the power of our cloud for new music and video streaming experiences for customers as well as AI technologies to help people more easily discover and listen to music. And in October, SAP selected Microsoft Azure as its preferred cloud provider, deepening the relationship between our two companies in a differentiated way to help customers like Coca-Cola, Walgreens Boots Alliance and CEMEX simplify their cloud transformations. This agreement signals a shared commitment to fostering the growth of the cloud ecosystem.

As we enter a new decade, I am extremely excited to see what new digital capabilities will emerge from our customers. From transforming businesses to advancing industries, the opportunity for our customers has never been greater, and we are ready to help them take the next step in their digital journey through close partnerships and new technologies.

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Source: The Official Microsoft Blog