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Microsoft responds to European Cloud Provider feedback with new programs and principles

You may have read last month in news reports about concerns raised in Europe about some of Microsoft’s software licensing practices that impact competing cloud providers. As I said to journalists then, we felt that “while not all of these claims are valid, some of them are, and we’ll absolutely make changes soon to address them.” As a major technology provider, we recognize our responsibility to support a healthy competitive environment and the role that trusted local providers play in meeting customers’ technology needs. We thought it was important to start taking meaningful action within weeks, rather than months or years, and we set a goal internally to do so by today, a day when I’m in Brussels.

I just finished an event in Brussels where I discussed our changes, and I wanted to share our steps more broadly in this blog. We’re announcing two closely related initiatives today:

  • The first is a set of five European Cloud Principles that Microsoft is adopting to run our cloud business across Europe. These principles, shown below and explained later in this blog, will guide all aspects of our cloud business, enhance transparency for the public, and help us to better support Europe’s technology needs.Microsoft’s European Cloud Principles
  • The second, which implements one of these principles, is a new initiative to support European Cloud Providers so they can more easily host a wider variety of Microsoft products on their cloud infrastructure. This will make European Cloud Providers more competitive by enabling them to better serve customers.

Before turning to the details, I think it’s important at the outset to acknowledge that these steps are very broad but not necessarily exhaustive. As I said in one video meeting a few weeks ago with the CEO of a European cloud provider, our immediate goal is to “turn a long list of issues into a shorter list of issues.” In other words, let’s move rapidly so we can learn quickly. Today we’re taking a big step, but not necessarily the last step we will need to take, and we look forward to continuing feedback from European Cloud Providers, customers, and regulators.

Feedback from European Cloud Providers

The changes we are making today on behalf of European Cloud Providers are grounded in feedback we heard in meetings with several of those providers across Europe. I joined other senior Microsoft business leaders so I could participate myself in remote meetings with the CEOs of two European providers. In recent weeks, we also engaged other business leaders and dispatched a team that met in person with companies and associations in multiple countries.

Some of the most compelling feedback for me personally came from a CEO who said that he felt that he “was a victim of friendly fire in Microsoft’s competition with Amazon.” It was hard to hear this – but he was right. Over the past few years, our focus on competing with the largest technology providers has resulted in us not being as attentive to the impact on our cloud provider partners. We are making changes to remedy this, beginning today.

This feedback captured an important aspect of recent cloud competition, highlighted in the graph below that was published last month in the Financial Times. Microsoft has a healthy number two position when it comes to cloud services, with just over 20 percent market share of global cloud services revenues. We compete every day with Amazon, which has consistently captured roughly 33 percent of those revenues. Google in turn has been growing its share of cloud services revenues and now ranks at number three.

Financial Times chart showing share of worldwide revenues by cloud providers.

Especially as the largest tech companies have invested more in their infrastructure and services, the biggest challenge has been for smaller cloud providers, like those headquartered in Europe that have expressed concerns about our licensing practices and their ability to compete. While these companies have been growing, it has been at a rate lower than the market as a whole. You can see this in the declining collective market share for smaller cloud providers shown in the graph above.

While a free market and rapid technological change inevitably lead to both new successes and challenges, we recognize that it is important to support a competitive environment in the European cloud provider market, in which smaller competitors have the opportunity to thrive. I personally appreciate the importance of these issues, having spent almost a decade leading Microsoft’s work to resolve its legal issues in the EU, with the last case finalized in 2009. It’s critical for us to remain mindful of our responsibilities as a major technology company, and this has informed the steps we’re announcing today.

Announcing: better support for European Cloud Providers

Today we’re announcing a new initiative to support European Cloud Providers, starting with the expansion of our flagship program: the Microsoft Cloud Solution Provider program. We are creating new benefits for customers that European Cloud Providers can build upon to deliver new solutions to those customers. This initiative will apply across Europe, including the United Kingdom. It will have several pieces, including the highlights described below.

More options for European Cloud Providers. First, we will enable more European companies that host software to join this program and will provide all of them with more opportunities and benefits than before. In short, we will enable and even help European Cloud Providers to host and run Microsoft products on their infrastructure for customers, including products that have traditionally been licensed to run only on a customer’s own desktop or server computers (typically called “on-premises” in the software industry). This will include the following:

  • This expansion will enable these cloud providers directly to offer Windows and Office (including Windows 11 and the Microsoft 365 Apps for Business and Enterprise) as part of a complete hosted desktop solution that they can build, sell, and host on their infrastructure. This will mean that European Cloud Providers will have the ability to provide this complete, end-to-end solution to their customers for the first time.
  • The expansion will also enable European Cloud Providers to provide this same service to customers who buy Windows and Office software from other Microsoft partners and who may want a European Cloud Provider to host this software for them.Financial Times chart showing share of worldwide revenues by cloud providers.
  • We are also addressing a pain point we heard from cloud providers by expanding the range of products that can be offered to customers at fixed pricing for longer terms, which will provide more pricing stability and certainty to providers and their customers.

More flexibility for customers. We recognize the importance of coupling the changes for cloud providers with greater licensing flexibility for customers. In recent meetings across Europe, we heard requests to simplify our licensing, and hence we have reviewed and will make changes inspired in part by the Fair Software Licensing Principles created by two prominent European organizations, CIGREF and CISPE, who are focused on Europe-wide issues. While we still have important work to do in drafting and implementing the details, they will include the following:

  • We will take to heart the first recommendation in the Fair Software Licensing Principles and will strive to craft revised licensing terms that are more clearly written, better enable customers to readily determine their licensing costs, and permit customers to determine their obligations more easily.
  • Several of the Fair Software Licensing Principles relate to how customers can move their licenses to the cloud, leverage shared hardware, and have more flexibility in deployment options for the software they purchase. In support of that, we will revise and expand our Software Assurance program, in which customers purchase new version rights, disaster recovery, failover support, license mobility, and many other benefits. Today, Software Assurance benefits do not include license mobility rights for products such as Windows, Office, or Windows Server, so customers must use that software in more restrictive programs or on hardware dedicated specifically to those customers. We will expand Software Assurance to enable customers to use their licenses on any European Cloud Provider delivering services in their own datacenters, similarly to how they can do so on Azure today, whether the hardware is dedicated or multi-tenant. We will then partner more closely with European cloud hosters so we can make this support experience more seamless for customers.
  • We will make it easier than ever to license Windows Server for virtual environments and the cloud by relaxing licensing rules that reflected legacy software licensing practices, where licenses are tied to physical hardware. With the changes we will be making, customers will now be able to buy licenses just for the virtualized compute capacity they need, without needing to count the number of physical cores on which the virtualized environment is hosted.

A new European Cloud Provider support team. To make these changes as effective as possible, we will create a new team that will work directly with European Cloud Providers. This team’s mission will be to help this community achieve its goals, provide licensing and product roadmap support, and continue to support their growth around cloud solutions. This new team will also work to create a tighter feedback loop, enabling European Cloud Providers to share ongoing feedback in real time and ensure that Microsoft is better connected and supporting their needs.

Forging closer partnerships with European Cloud Providers. We are also looking beyond the recent narrower issues and asking how Microsoft can be a better partner and supporter of European Cloud Providers. Technology markets are continuing to change rapidly. We believe that all of us will need to continue to evolve our business to remain successful. We’re therefore interested in identifying new opportunities we can all pursue, including together, to grow our businesses by better supporting customers.

The Microsoft Cloud Solution Provider program, as an example, is intended to enable more economic opportunity for cloud providers than simply reselling our products and services. As customers increasingly look to cloud providers for help to manage their complex environments, the program allows cloud companies to provide a broad range of managed services to help deploy, manage, maintain, and support cloud services. Small and medium-sized enterprises, in particular, need additional managed services like this to make better use of cloud and AI technologies.

We will also create new ways for local cloud providers to work with Microsoft, including a new concrete initiative to serve governments with so-called “sovereign solutions,” described further below. And we will back these efforts with new investments from Microsoft to help accelerate these efforts more quickly.

Announcing: Microsoft’s European Cloud Principles

The focus on European Cloud Providers is part of a broader initiative and set of European Cloud Principles that I shared at the Brussels event today. It sets forth five principles that will guide our cloud business across Europe. These are:

  • We will ensure our public cloud meets Europe’s needs and supports Europe’s values.
  • We will ensure our cloud provides a platform for the success of European software developers.
  • We will partner with and support European Cloud Providers.
  • We will provide cloud offerings that meet European government sovereign needs in partnership with local trusted technology providers.
  • We recognize that European governments are regulating technology and we will adapt to and support these efforts.

Let me share here a bit more about each of these principles:

We will ensure our public cloud meets Europe’s needs and supports Europe’s values

Most broadly and importantly, we are committed to ensuring that Microsoft’s cloud supports Europe well. We have more than 40 years of experience in Europe, and personally I’m always proud to say that I spent my first three years as a Microsoft employee based in Paris. That was almost 29 years ago.

Our focus here has two parts. The first is a commitment to use Microsoft’s resources to invest in and build a public cloud that will meet Europe’s economic, security, and cultural needs in a deep and forward-looking manner.

We have completed or are now constructing 17 datacenter regions in Europe and are rapidly expanding our footprint across the continent. Since 2020 we have announced plans to build nine new datacenter regions, in Austria, Belgium, Denmark, Finland, Greece, Italy, Poland, Spain, and Sweden (launched last November). During the past two years alone, we have made investments exceeding $12 billion, making Microsoft one of the largest sources of capital for Europe’s technology future.

Building the Digital Infrastructure for Europe’s Future. 17 countries with local datacenters built or under construction. $12B of Microsoft capital spending in the past two years.

But it’s not just the large amount we’re spending. It’s how we’re spending it. We’re not trying to replicate all the services that other tech companies offer or enter businesses that compete with our customers.

We focus instead on developing cloud and AI technologies that can augment all the factors of production needed for economic growth. Economists have long recognized that factors of production are the “building blocks of the economy” – they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. While digital technologies of course are products in their own right, we believe our role in the European economy is to create cloud and AI technologies that can be used by any European company, NGO or government as an input to augment every factor of production and help build and enhance its own products or services in the pursuit of growth and prosperity.

This role requires that we understand and connect closely with not just the companies but the communities where we operate. Our decades of local experience and deep customer connections give us many broad insights about local economic needs. This includes enormous appreciation for the leadership of European companies large and small in a wide variety of specialized technical and business domains that are critical to the world’s future. Industries like automobiles, aerospace, chemicals, foods, pharmaceuticals, and many other manufactured goods are all good examples. In so many ways, European products sustain the world and are the backbone of Europe’s own economy.

But we also appreciate that a changing world is creating new challenges for Europe (and indeed every part of the world). Part of this is a new set of challenges for specific companies and industries. The global competitiveness for many European companies in the decade ahead will require the use of cutting-edge cloud and AI services. Our mission is to meet this need.

There’s one additional aspect that is even broader and more important. We’ve reached a demographic turning point in human history that is creating new challenges for the European Union, Japan, and many other industrial countries. It’s not just that populations are getting older. An even broader challenge is that working-age populations are getting smaller. As shown in the graphs below, we’ve entered uncharted demographic territory, as the working-age population (defined as ages 20-64) will shrink in each decade ahead.

EU working age population peaked in 2020 and total population peaked in 2010

EU working age population expected to decrease 6% (-14.8M) by 2030

This means that many European countries will need to grow their economies and improve prosperity while adapting to a constantly shrinking population of working-age people. The implications of this change are vast and profound. At their core, they mean that growth and prosperity will depend in no small part on better technology inputs such as cloud services and artificial intelligence. Our aim, put simply, is to provide Europe with world-leading, cutting-edge technology that can serve as a foundation for meeting these economic needs.

There is a second dimension as well. We appreciate the critical importance of serving not only Europe’s growth, but Europe’s values. We are grounding our work as a company in four key priorities – support for inclusive growth, the protection of democracy and fundamental rights, trusted technology, and environmental sustainability.

We are backing these goals with concrete measures. For example, we are working to ensure not only that our technologies support every part of the European economy, but also  investments in broad skilling initiatives, so people and organizations have the expertise needed to put this technology to effective use. Already, we have reached almost nine million Europeans.

Similarly, as the war in Ukraine has demonstrated, we’re committed to protecting and even defending European democracies with world-leading cybersecurity measures, a topic I’ll address in greater detail tomorrow in London. We’re similarly taking new steps to protect European democracies from foreign nation-state disinformation operations, while providing essential cybersecurity protection for candidates, political parties, and think tanks.

And we continue to expand the work needed to ensure that people can trust the technology they use – through steps like our EU Data Boundary for the Microsoft Cloud – and to help meet ambitious climate goals, as I shared publicly yesterday in Germany. We do all of this with appreciation for Europe’s deep and varied cultures, which have contributed so much to humanity, and which we can use new technology to protect and promote.

We will ensure our cloud provides a platform for the success of European software developers.

The European technology market is of course far broader than the market for cloud infrastructure. The European economy, especially the 22.5 million small and medium-sized enterprises (SMEs) that comprise 99 percent of all companies in Europe, are purchasing more than €50 billion in software applications and services each year. This is projected to grow to €136 billion by 2025, with the most significant growth coming from software as a service (SaaS) providers.

We are committed to supporting the success of European software developers across the full range of these technology markets. Our tools and technology are widely used by European developers, with more than a quarter of active GitHub users and almost nine million developers in Europe using our Visual Studio family of products today.

In addition, we have worked with nearly 50,000 European startups enrolled in our programs to scale up and accelerate their growth, including providing more than $500M in technology benefits and support over the last two years. Our 11 Microsoft Technology Centers across Europe are helping companies explore creative technology solutions to their business challenges – efforts that have been important throughout Microsoft’s four decades presence in Europe and are even more vital today. And they pay concrete economic dividends.

According to a recent IDC study, by 2025, Microsoft’s ecosystem partners in Europe will generate $8.00 of revenue for every dollar of revenue generated by Microsoft itself, up from $6.79 today.[1]

We will partner with and support European Cloud Providers.

Our announcement today is designed not just to address recent and specific issues, but to elevate the importance of our work to partner with and support European Cloud Providers. As we look to the future, we believe that changing technology will create the need for a new generation of managed cloud services that can often best be provided by trusted local providers.

Many customers have outsourced IT services for decades, and these services today involve data that is more sensitive than ever for a business and its customers. While a large tech company like Microsoft can excel at building a public cloud with global efficiencies, scale, and security, that doesn’t necessarily make us the right provider to manage the specialized IT resources and services of every customer. One of our priorities therefore will be to invest in and better partner with local cloud providers across Europe, so we can work together to provide forward-looking managed services that meet evolving customer needs.

We will provide cloud offerings that meet European government sovereign needs in partnership with local trusted technology providers.

We recognize as a company that many European governments want more customized cloud solutions for their sovereign technology scenarios, especially for public sector and certain critical infrastructure providers. Increasingly, European governments are developing data classification regulations so they can treat different categories of data in different ways. This is helping government officials develop a more flexible and nuanced approach that balances the sensitivity, and hence security protection, needed for different data categories with opportunities to combine public and private cybersecurity threat detection, innovate faster, and reduce technology costs. This also reflects the size of different countries and governments, including the size of a government’s intelligence agency that may wish to assume sole and complete cybersecurity responsibilities for data protection.

In short, there’s a rapidly emerging trend across Europe that eschews a one-size-fits-all approach and instead offers national governments more choice and flexibility. As a company, we are committed to meeting this need. Based especially on Microsoft’s recent experience defending Ukraine from Russian military cyberattacks, we recognize both the critical importance of this need and the opportunity to work in ways that provide individual governments with the opportunity to choose how to deploy digital technology to protect sovereign needs.

A critical aspect of our cloud strategy is therefore to work more closely and rely upon trusted local technology partners. We recognize that some governments may want to provide access to some sensitive workloads and data categories only to local providers, secured even from cloud infrastructure providers. Or alternatively, they may want to rely solely upon such a local partner for a subset of data processes or ensure that such a partner can provide oversight of the data flows of the infrastructure provider. Especially because national needs and choices differ, local options and expertise are critical.

Over the past year, we have moved quickly to create more local options for European governments, partnering in each case with a trusted local cloud technology company. For example, in May 2021, we announced a partnership with Leonardo in Italy to provide cyber protection for data and services for strategic data assets linked to the upcoming National Strategic Hub: Polo Strategico Nazionale (PSN). The same month we announced Bleu, a partnership with a French company owned by Orange and Capgemini to provide a “Cloud de Confiance” service to meet sovereignty requirements in France.

We have followed this with two more steps during the past six months. In December 2021, we announced a new partnership in Spain with Telefonica Tech, to offer public sector organizations, including defense and companies in regulated environments, customized infrastructure and cloud computing services. And in February 2022, SAP and Arvato selected Microsoft as their cloud technology partner for a new German company that will provide a sovereign cloud infrastructure for the German public sector.

We’re committed to the continuing evolution of this work, adapting in each country to the national government’s needs and requirements. We see this as another opportunity to partner more closely with European cloud and other technology companies in each country, and we plan to announce further steps in the months ahead.

We recognize that European governments are regulating technology and we will adapt to and support these efforts.

The 2020s are creating a new era for technology. Unlike the last few decades, we’ve entered an era that is characterized by both technology innovation and technology regulation. Like any company, there are days when we read a particular proposal and grimace at what it may involve. But fundamentally, we believe the tech sector needs to mature and adapt to, rather than fight against, a new age of tech regulation.

This is not a small or easy endeavor. As I stated earlier, the next three years will see the realization of the European Commission’s vision for a Digital Europe based in part on the SaaS solutions of tens of thousands of startups and SaaS offerings from European enterprises. In short, cloud service providers of all types must work through how to best meet the obligations of coming regulatory changes. This is not just a European phenomenon; it is a worldwide challenge. Regulatory changes are coming in multiple legal fields and from many countries around the world. In part, because democratic governments have waited so long to regulate digital technology, they understandably feel enormous pressure to catch up quickly. And because the tech sector is so global, no industry has ever had to grapple with so many regulatory changes on such an international basis.

While the tech sector will need to mature and adapt, we also will need to push ourselves to be more transparent and help government officials gain information and insights about what’s needed to enable innovation and regulation to move forward together. One thing I’ve learned first-hand is that it’s often easier to design technology than to build it. And it can be easier to build a technology service than to operate it. This is critical for technology regulation as well. We need technology services and regulations that will work together in practice.

This will require that governments do more to coordinate regulatory initiatives both internally and across borders. At Microsoft, we’re now tracking more than three hundred regulatory proposals in a dozen legal fields from more than one hundred countries. While the European Union is a global leader in tech regulation, gone are the days when the EU could adopt something like GDPR while other governments’ regulatory initiatives were standing still. This creates the need for more discussion and coordination among governments than in the past.

Ultimately, all this will create more opportunities and challenges for everyone involved in the discussions that will shape the future of tech regulation. For me, this is perhaps the most exciting aspect.

The future of technology innovation and regulation will require people who can think creatively. People who think across boundaries. People who can build bridges, not just across countries, but across intellectual fields like engineering, computer science, and the liberal arts. As we advance AI and entrust computers to make decisions that previously could only be made by humans, we will need more people steeped in the humanities and social sciences. We will need to make room at the table for people that represent the world’s great cultures and important religions.

Great technologists will continue to innovate. What we all will need to do together is ensure that technology innovation serves people. In part, this will require thoughtful technology laws and regulation. And these can only come from thoughtful people who are committed to listening and learning together. At Microsoft, we’re excited to be part of these conversations, and we’re committed to contributing constructively to their success.

[1] IDC Info Snapshot, sponsored by Microsoft, The Microsoft Cloud Dividend Snapshot: Europe, Doc. #US49115022, May 2022.

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Podcast: An interview with Microsoft President Brad Smith

headshot of Microsoft President Brad Smith for the Microsoft Research Podcast

Episode 113 | April 1, 2020

Brad Smith is the President of Microsoft and leads a team of more than 1400 employees in 56 countries. He plays a key role in spearheading the company’s work on critical issues involving the intersection of technology and society. In his spare time, he’s also an author!

We were fortunate to catch up with Brad who, late on a Friday afternoon, sat down with me in the booth to talk about his new book, Tools and Weapons: The Promise and the Peril of the Digital Age, and revealed the top ten tech policy issues he believes will shape our own century’s roaring 20s. He also gave us a peek inside the life of a person the New York Times has described a “de facto ambassador for the technology industry at large” – himself!

Related:


Transcript

Brad Smith: Fundamentally, what we are talking about, is endowing machines with the power to make decisions that previously could only be made by humanity and we have to ask ourselves what kind of decisions do we want machines to make? If we have any aspiration of these decisions reflecting the best of humanity, we better focus on responsibility and all of the pieces of it.

Host: You’re listening to the Microsoft Research Podcast, a show that brings you closer to the cutting-edge of technology research and the scientists behind it. I’m your host, Gretchen Huizinga.

Host: Brad Smith is the President of Microsoft and leads a team of more than 1400 employees in 56 countries. He plays a key role in spearheading the company’s work on critical issues involving the intersection of technology and society. In his spare time, he’s also an author!

We were fortunate to catch up with Brad who, late on a Friday afternoon, sat down with me in the booth to talk about his new book, Tools and Weapons: The Promise and the Peril of the Digital Age, and revealed the top ten tech policy issues he believes will shape our own century’s roaring 20s. He also gave us a peek inside the life of a person the New York Times has described a “de facto ambassador for the technology industry at large” – himself! That and much more on this episode of the Microsoft Research Podcast.

Host: Brad Smith, welcome to the podcast.

Brad Smith: Thank you, nice to be here.

Host: You’re an unusual guest for us in the booth. As President of Microsoft, you oversee a lot of stuff and you wear a lot of hats. So let’s kick things off by talking about what gets Brad Smith up in the morning. What does a day in the life of the President of Microsoft look like?

Brad Smith: I think what gets me up, frankly, is the opportunity to sit down and work hand-in-hand, or at least arm-in-arm, with, you know, researchers, with engineers, with people focused on computer science and data, and what it all means for the world because that’s really, in many ways, my job. It’s the intersection, if you will, between engineering and the impact of data and technology on the world today, the issues, the challenges that all this creates. I, you know, spend a lot of time representing Microsoft externally. I spend a lot of time working on our big initiatives internally. I like to say that if there’s an intersection, and there is, between engineering in the liberal arts, I’m the liberal arts side of the intersection, but I’m right smack in the middle of it every day.

Host: I want to go there for a second because we’re looking at universities around the country that have been responding to the uptick in stem majors and the downtick in humanities majors and they’re responding financially. They’re closing some departments and they’re consolidating some. Speak for a second about the importance of the liberal arts and humanities road coming into this intersection.

Brad Smith: I think the thing that people are missing today is that, more than ever, technology is a multi-disciplinary sport. This is an industry that was largely built by engineers, researchers and developers and the like, and I grew up in it. I’ve been at Microsoft for more than twenty six years. But if you look at where technology is going, I think everyone who majors in computer science or data science needs to take a dose of other courses in the liberal arts. I think everybody who studies in the liberal arts absolutely needs some exposure to computer science, to data science, to statistics and the like. But what we really need to recognize is the teams that are going to do the best work, who are going to solve the world’s greatest problems using technology, are almost always going to be multi-disciplinary teams, people who’ve come from different functions and different backgrounds.

Host: Well, a big chunk of what we’re going to talk about today is on the topic of artificial intelligence, or AI, and we have a lot of ground to cover, but before we get into the weeds, I want to start at a higher level and look at AI through the lens of responsibility. I think we all realize the power of AI and many have begun to talk about things like ethical AI and trusted AI, but you’ve chosen the word responsible. Why?

Brad Smith: I think it’s important to have a word that encompasses more of what we’re really talking about. Ethics play a fundamentally important role. There are things that I think go beyond ethics, to some degree, that are grounded in the rule of law, in the recognition of human rights, an element of societal responsibility. Fundamentally, what we are talking about, is endowing machines with the power to make decisions that previously could only be made by humanity and we have to ask ourselves what kind of decisions do we want machines to make? If we have any aspiration of these decisions reflecting the best of humanity, we better focus on responsibility and all of the pieces of it.

Host: Hmm. Well on that note, you and your colleague, Carol Ann Browne, who’s Microsoft’s Senior Director of External Relations and Executive Communications, have a new book out called Tools and Weapons. Just the title is fantastic, and it’s evocative of the idea that every new technology comes as a package deal. It’s both a blessing and a curse. So tell us what inspired you to write this book at this time?

Brad Smith: I think two things inspired us to write it. One is the ubiquitous nature of digital technology in the world today. It really has become the fabric of our lives, our homes, our communities, our societies. It is, in some ways, at the foundation of every opportunity to make progress. Technology is also part of every challenge that every community is facing. That really speaks to the tool and the weapon that technology has become. And we really felt that it was important to reach a broader audience to bring these issues to life. These issues are too important to be left to people who work in tech companies. Uh, by definition, they’re affecting everyone and I think it’s, to some degree, incumbent upon us who are closer to it to help make the issues, the facts if you will, more accessible to more people.

Host: In your work at Microsoft and in Tools and Weapons, you outline six core principles that you suggest will guide us into this next decade and they provide the underpinning of responsible AI, which we’ve just alluded to. So give us a brief overview of the principles and why they’re important, but also how you see them playing out in what I’ll call an AI, 5G, quantum computing, cloud scale era.

Brad Smith: Well, first we, at Microsoft, did develop and publish our six ethical principles in a way that’s sort of remarkable to me. This was only two years ago that we did it. This was a joint effort of, really, people in Microsoft Research led by Harry Shum and Eric Horvitz, and people in the part of the company that I lead, to work together. The six principles really cover first, fairness or the avoidance of bias, the need to protect privacy and security, the need to ensure that artificial intelligence is safe and reliable, the need to ensure that it’s inclusive. I will say for all people, and perhaps with a special eye towards the billion people on the planet who have some sort of disability.

Host: Right.

Brad Smith: That adds up to four. Those four principles really sit on two others that are foundational for all of them. One is transparency. The notion that people can’t understand or have confidence in the fulfillment of these principles unless there is a level of transparency. And then there is the principle that I think is the bedrock of them all: accountability. The notion that machines must remain accountable to people. The principle that the people who create this technology must remain accountable to society as a whole. That adds up to the six, and what I think is interesting, in part, is that this set of principles, or other principles like them, are really spreading around the world.

Host: Yeah.

Brad Smith: I think to some degree, Microsoft’s principles influenced others. Certainly, to some degree, other people’s work influenced us. But mostly, and I think it’s encouraging, people are tending to think in fairly similar ways and you see a consensus emerging, more or less, almost organically. That’s encouraging.

Host: How do you think, how do you wrap your brain around the fact that, while you and others can say these are the things we’re aiming for, you’ve got all these other players and actors in the world that may or may not be as eager to follow those as you?

Brad Smith: Well, I think that really points to two very important dimensions. I’ll just call it the state of responsible AI in the world today.

Host: Mm-hmm.

Brad Smith: The first is even those of us who embrace these principles have to recognize that being able to articulate them is not sufficient to operationalize them. And so the biggest challenge, whether you’re talking about Microsoft, or any institution in the world today, is really to figure out how to take its commitment to principles and turn them into something that is real every day.

Host: Right.

Brad Smith: And that requires going from principles to policies. You need to implement these policies in a series of standards, things like research or development guidelines. You need to put in place training programs for employees. You have to have the capability to measure and monitor whether they’re being pursued. You need compliance systems. You need to build all of that. And we need to do it, in a case like Microsoft, literally, at a global scale. And I don’t think anyone should underestimate just the magnitude of that challenge. And then, by the way, you have the second challenge. What do you do about people who say, that’s very nice. I don’t care. Um, I’m not going to be principled, or I’m not going to sign on for that principle. I’m going to use artificial intelligence in ways that are going to do societal damage. And I think this is where public policy and the law kicks in.

Host: Right.

Brad Smith: Ultimately, the only way to ensure that everyone is ethical, or is accountable for some ethical standard, is to take the ethical principles that we want to apply universally and enact them into law.

Host: Every year you and your team – while we’re on the topic of lists – identify ten top tech issues that you predict will be important for the coming year. And when it’s a beautiful year like 2020, for the coming decade. As you’ve said in your book Tools and Weapons, technical innovation isn’t going to slow down so the pace of the work around it has to speed up. Give us an overview of the list you’ve got this year, for the decade of our own roaring 20s, as it were, and your thoughts on how people doing the technical work, as well as the people doing the other work, might help address them and do so at the speed of technology.

Brad Smith: We really found it helpful to create our top ten list this year. This is something that Carol Ann Browne and I have done for a few years in a row and yeah, having then written the book and been out talking to people about the book, we took the conversations and, frankly, everything we were hearing from other people, took a step back and said, well, it’s the 2020s, let’s just not focus on ten issues for the year, let’s think about ten issues for the decade.

Host: Yeah.

Brad Smith: And they tended to fall into, I would say, you know, four buckets. The first, an issue all of its own, but a bucket completely on its own, is sustainability, just because we see climate as such an important issue and it’s going to reshape everything, including technology.

Host: Right.

Brad Smith: Second, we have issues of fundamental importance, around trust, around privacy, security, digital safety, responsible AI. Third, we see huge issues around geo-politics, whether it’s the relationship between the United States and China, or the focus on digital sovereignty, especially in countries in Europe. And finally, there’s really the role of technology in inequality. We talk a lot about income inequality. You see technology playing into that, especially in the context of internet inequality.

Host: Yeah.

Brad Smith: Some people have broadband, some don’t. Skills or educational inequality, especially access to digital skills. Housing inequality, in cities like Seattle or San Francisco where the tech sector is fueling a rise in housing prices. So when you take, you know, the future of the planet, our ability to trust technology, the geo-politics of technology, and, you know, technology-fueled inequality, it’s going to be quite a decade! The roaring 20s may be pretty roaring, I think is one way to think about it!

(music plays)

Host: You know, you’re a lawyer, and the thing that seems to be lagging the most in my mind, and I may not be alone, is that the law hasn’t caught up to technology. What kinds of things are happening in the, sort of, political and legal structures around – we’ve seen GDPR in Europe and some of the other sort of thinking forward – what’s happening elsewise in this arena?

Brad Smith: Well the basic thesis of our book is that tech companies need to step up and do more, and governments need to start moving faster.

Host: Yeah.

Brad Smith: We are starting to see governments move faster, probably first and foremost in, I’ll say, Brussels and Beijing. Those are the two places where regulation tends to move the fastest. We’re seeing it in other places. I think it will be fascinating to see what unfolds in London, now that the United Kingdom is really its own regulatory power, if you will.

Host: Right.

Brad Smith: We will see more momentum in Washington, D.C. Already we’re seeing it at the state level in the United States. We’re seeing California be a leader in the United States around privacy.

Host: Mm-hmm.

Brad Smith: So I think it’s very clear that, by the end of this decade, technology is going to be more regulated than it is today. And that will be good, and that will create challenges for all of us who work with it.

Host: Well and the fact that, it has to. I mean, you’ve got things that people would say, we don’t even know what to do with this in a court, right?

Brad Smith: One of the points we’ve made is that, in so many respects, digital technology has gone unregulated for probably a longer period of time than any important technology in the period of time, say, since the 1850s.

Host: Right.

Brad Smith: Compared to the automobile or airplanes, for example. Everything that resulted from the combustion engine. We saw more regulation. Or just think about the world in which we live: foods, drugs, you know, cars today… they’re all regulated by health and safety standards, and yet digital technology is not. And yeah, I think it’s overdue. It doesn’t mean that regulators should be thoughtless or uninformed or fail to think about balance, but we do need a regulatory floor and I think it’s right to recognize that.

Host: Right. And even the things you mention, these are all things that have imminent harm potential if something goes wrong, and I think we’re just starting to figure out there’s potential imminent harms with these technologies.

Brad Smith: I think that is true and I think that, you know, by 2030, in so many ways, an automobile is going to be a computer on wheels.

Host: Mm-hmm.

Brad Smith: An airplane is going to be a computer with wings. But fundamentally, computers, digital technology, AI, will raise many of these issues even if they’re in a box that’s standing still.

Host: Well, one of the biggest fears that people have about AI, aside from sensational predictions in the popular press, is a grouping of topics that you’ve mentioned, privacy, safety and security in an AI world. We’ve talked a bit about the “what” of these concerns, but I want you to talk a little bit about the “what now?”

Brad Smith: Well, I think the first question for anybody who works in the technology field, as a researcher or a developer or a designer, is actually to think hard about what these issues mean for the products that people want to create.

Host: Yeah.

Brad Smith: What does it mean to have privacy by design, to have digital safety by design, to have responsible AI by design, to have cyber security by design? All of these are design fields that have started to really take off and, in many respects, they’re maturing rapidly. In many respects, I think those of us who are connected with the creation or the research advances in the technology are absolutely in the best position to bring innovation to the protection of people that will be essential. And then if you look beyond that, all of us are users of technology. We’re all consumers. Increasingly there are many features in popular products, consumer products, business services and the like, that do protect privacy. Certainly they protect security. And the question is whether, as consumers, we want to use them. And, you know, for all of us who care about these causes, I think there is some real benefit to using them and, frankly, helping to give a boost for the kind of usage that will help drive improvements.

Host: Right. Interestingly – and I had some other researchers in the booth who’ve talked about these privacy and security and safety issues – a lot of technology is binary. You either want to use the app and so you agree to everything, or you say no and sorry, you can’t use the app. So is there any move towards controls on the part of consumers and users in technology to say, hey, it’s not just binary. You can have this about me, but you can’t have that?

Brad Smith: I think the answer is no and yes. Um, no, I mean some services are binary, but increasingly, you look at an app on a phone and you think about something like the location service, there’s three choices: you can never use the location service, you can always have the location service on, even when the app itself is not running, or you can say, the location service can locate me, but only when I’m using the app.

Host: Mm-hmm.

Brad Smith: Um, and the first thing I would say is, if you want to protect your privacy, you can go to that middle…

Host: Um-hum. 

Brad Smith: …level and only have the location service know where you are when you actually want the app to do something for you.

Host: Right. Right.

Brad Smith: But I would then actually step back and look much more broadly. There’s a lot to what you say in suggesting that we don’t have as much choice as consumers that we might like.

Host: Right.

Brad Smith: So what do we do? I’ve had vibrant debates in Silicon Valley where some in the tech sector have said, look, the fact that people are not turning away from this app or another means that people fundamentally don’t care about privacy. I believe they do care, but people want to continue to use these services and where you see them manifesting their opinion is actually the public opinion that is increasingly shaping the views of government officials.

Host: Right.

Brad Smith: The fact that California passed a sweeping privacy law after it had enough signatures to go on the ballot, after the polling showed it would be passed overwhelmingly, I believe says, people do care, they want to have their privacy protected and they want to be able to use the service.

Host: Right.

Brad Smith: They want both.

Host: In your book and elsewhere, you also talk about the positive things that we’re seeing as a result of advances in technology and one of the best things about AI is its ability to democratize and improve areas like medicine and accessibility and the environment. So just in 2020 so far, it’s been a busy January for you, Brad, you’ve led two big announcements for the company. One is Microsoft’s Carbon Negative by 2030 initiative.

Brad Smith: Yes.

Host: To say it right. And another is the launch of AI for Health with Peter Lee from Microsoft Research here. Both are part of your AI for Good program, so tell us a little bit more about these announcements and why they’re important to Microsoft’s larger mission in developing technology.

Brad Smith: They were both really important and, in my view, exciting steps for Microsoft to take. Our carbon announcement I think is not just important to Microsoft, I hope it is something that can be part of an ongoing broader movement that we’re clearly seeing every day that is sweeping around the world, moving across the business community and really mobilizing companies to do more to address carbon and climate issues. It took a huge amount of work to bring together every part of Microsoft, to really make that announcement possible and it took a lot of iteration to sort of get to a point where we could have the ambition that was as high as I felt we needed, but also the rigor of a plan that would give us confidence that the goals could be met. It speaks powerfully to the role of digital technology in part, because we have these huge goals, as you mentioned, to be carbon negative by 2030. To, in effect, go back in time and remove, by 2050, all the carbon that Microsoft has emitted since its founding in 1975. And part of this goes to the heart of more renewable energy for our data centers, more efficiency for our data centers, a variety of other steps where digital technology, digital transformation, will just be fundamental to not just Microsoft’s own direct carbon reductions, but also across our supply chain, our value chain. So digital technology is, I think, a foundational tool for helping to address the world’s climate needs. And at the same time that we hopefully have a planet that is habitable in the right kind of way, we can also spread better health for the human population.

Host: Right.

Brad Smith: And this is where the AI for Health initiative that, really, Peter Lee and then John Kahan from the data science side, have been at the heart of leading. And there are so many areas where it’s now clear that data and artificial intelligence can help lead to breakthroughs. Breakthroughs in helping us find cures for diseases, helping us understand the distribution of, if you will, health among different populations…

Host: Right.

Brad Smith: …helping us bring better health to broader populations. AI is, in a sense, at the heart of everything in the world today, so it makes sense that as we’ve been expanding our own AI for Good efforts, we now have five pillars. We started with AI for Earth. We went to AI for Accessibility, AI for Humanitarian Action, AI for Cultural Heritage, and now, AI For Health. It is exciting to see how many different problems AI can help us address. I think what it really points to, and I think it’s an interesting aspect of all of this, is again, the multi-disciplinary nature of technology.

Host: Right.

Brad Smith: So much, I believe, of the cutting edge of research is not just within a field, but, you know, the AI for Earth work is a great example of this. At Microsoft, we have a team that consists of computer scientists and data scientists and environmental scientists.

Host: Right.

Brad Smith: And you can take the first two and add in a third discipline from a broad list of disciplines and if you can get people working together you can probably do some good for the world.

(music plays)

Host: Well, Microsoft isn’t the only onin the AI game. It’s at the forefront of every major tech company and, more importantly, the forefront of many nation states now. As President of this company, I’d like to know how you position Microsoft in this very large arena and how you view the company’s role in the AI world. What’s Microsoft’s vision in terms of leadership in AI, both inside the company and outside?

Brad Smith: There are two things that come together that I think are critically important. The first is Microsoft’s grounding for all of us who work here in our mission. You know, it really is a mission to empower other people, other organizations, all around the world to use technology, including AI, to achieve more. Now, what that means, put in that context, is a couple of key things. One is, our mission really is universal. I mean, we’re trying to create technology that people can use around the world to better themselves and their communities. One of the things that means is that we want to democratize technology. We want to democratize access to it. I don’t think that any of us should want a future where the secrets, or the wealth, of AI resides just in a couple of countries.

Host: Or companies.

Brad Smith: Or companies, absolutely. I think we should think of it more like electricity. Electricity has spread around the world and a country benefited from it mostly based on how quickly it adopted it…

Host: Right.

Brad Smith: …and spread it to its rural communities and the like. That’s what we should want of AI. But there is a second dimension that is also, to some degree, at odds with the notion of providing this technology to anyone who wants it to do with it whatever they choose. It goes back to these principles. And I would argue that those principles are even implicit in our mission. You can’t empower people if you can’t protect them. If you can’t keep them safe. So there are certain use cases that we won’t allow for our technology. At times it means there are certain countries where we won’t be comfortable providing the full range of services. And this is a more complicated world. It is, in some ways, vastly more complicated than the world of producing Microsoft Word and letting anybody use it knowing that somebody would create a work that would get the Nobel Prize in literature, and someone else would write something truly horrible, but we created the tool and we were not responsible for whether somebody turned it into a weapon if you will.

Host: Right.

Brad Smith: Because we couldn’t control that.

Host: Right.

Brad Smith: But in a world where AI runs as a service in a data center from the cloud, you can impose more controls.

Host: Hmm. Interesting.

Brad Smith: And I think that’s one of the reasons that governments and the public is expecting more of tech companies. They expect us to do more because we can and should.

Host: So along those lines, you’ve said that Microsoft isn’t planning to deliver AI in a big box, but rather deliver the building blocks of AI so anyone can build AI systems. Obviously with some caveats there. Since we’re sitting here in the heart of Microsoft Research, I want to get your take on what those building blocks are and the role of research in delivering them.

Brad Smith: Well, I think it’s a really great question and I see it not just at a place like Microsoft Research, but I’ve also served as a trustee at Princeton University for a number of years. And I would say two things. One is, you see in computer science departments, or you see in other departments that are really, you know, at the foundation for data science, certain ongoing opportunities for advances at the basic research level. And these are, in many ways, fields that people here at MSR and elsewhere have been, you know, heavily involved for not just years, but decades.

Host: Mm-hmm.

Brad Smith: Things like, you know, computer vision. Things like speech recognition. Almost anything relating to machine learning. You know, so you have a lot of these fields that are just moving forward very quickly. But at the same time, I think so much of the most important work is actually very multi-disciplinary.

Host: Yeah.

Brad Smith: Certainly, at a place like Princeton, you know, I have the opportunity to work and see, you know, some of the issues in the environmental field again, or microbiology. I see issues that we’re working on, Microsoft and Princeton together, around so-called programmable biology.

Host: Yeah.

Brad Smith: And I think that is such a defining part of the future. It’s why I’m always excited about the fact that, at Microsoft, we have a lot of people who have PhDs in computer science or data science, and we have a growing number of people who have PhDs in other fields and then we work to bring them together, and the same thing is happening at universities.

Host: Well, Brad, we’ve reached the part of the podcast where I always ask the guests to get real and answer what could possibly go wrong. A good part of your professional career has been dealing with things that go wrong, in a court of law, and you’re a veteran at the “what keeps you up at night” question. So as a leader of one of the most well-known tech companies on the planet, you have to consider, every single day, the potential down sides of every technology that your company is putting out there. So what keeps Brad Smith up at night and how does he mobilize a company like Microsoft to help him sleep better?

Brad Smith: I think, fundamentally, the thing that I worry about the most is the weaponization of the technology that we create. It can be weaponized in very specific scenarios, say, something like facial recognition, to stop people from peacefully assembling in a city square. It can be weaponized because of the risks of bias by a police force that’s not well-trained. I worry that data, and data centers, can be accessed by governments to monitor people on a scale that, you know, has been well imagined. It was written about seventy years ago in the book 1984, but now it can become a reality. I think the most natural thing for any creative company to do is to just keep creating more products and keep selling them to anyone who will buy them. And yet, if you want to be principled, you want to do good, if you want to be responsible, you have to be able to say no. No, that is not something we want to create. No, that is not something we want to sell for that particular use to that particular user. And it takes an enormous amount of discipline, self-discipline and business process, to ensure that an organization, especially one operating at a global scale, will avoid falling into those traps. That’s one of the things that keeps me up at night, wanting to make sure that we, at this company, don’t fall prey to this kind of problem.

Host: You know, the researchers that answer this question can rarely go into those weeds. They’re making the things. A person like you can. Upstream is where the company and/or the leadership decides how we’re going to be as company.

Brad Smith: One of the things that gives me great hope and encouragement is that I find that our employees do care about it, and want us to do the right thing. And I’ve been so encouraged, even, typically, when I’ve run into an account team that might have been working for months to sell something and then they’re told they can’t, but they really do get it. But it does require that we all remember that we have to stay constantly focused on this. You can say you’re principled, but if, at the end of the day, you’ll do every deal that can be done, then the only principle you’re really upholding is a principle that you’ll do every deal that can be done and it ends up swallowing everything else.

Host: Brad, you have small town, mid-western roots and a decidedly non-technical background. Give us a brief history of Brad Smith. How did your early life shape who and what you are today, and how did you gravitate from history to high tech?

Brad Smith: Well, I was really fortunate. I like to joke that I grew up in a middle-income family, in the middle of the country, with the last name Smith, the most common name in the middle of the phone book, almost literally. But out of all of that, I came out of Wisconsin, was really lucky to go to Princeton and, you know, work my way and get scholarships on my way through college, and that was one of the places that introduced me to technology and technology policy issues. While I was a student, by my junior year, I had literally graduated from delivering newspapers in the morning and serving food in the cafeteria in the evening, to having a job working for the university’s Director of Government Affairs.

Host: Wow.

Brad Smith: I was just a student assistant. It was nothing terribly grand, but the issues that we got to work on were, fundamentally, science and technology policy issues. Things like federal support for basic research. Things like the federal government’s support for plasma physics fusion research, where Princeton did, and still does, have a national laboratory. So that really awakened my interest in this intersection between technology and policy. And then, a few years later, there was this new thing coming out on the market called a personal computer and, as somebody who was going through law school, somebody who had to do a lot of writing, I looked at this and I got quite excited both because of, sort of, the technical, technology gadget side, but also, I looked at it and said, I’ll bet I can write faster and better if I have this, and then play games as well, and it turned out that all that was true!

Host: So how did you end up working for the company that makes personal computers?

Brad Smith: Well, in a sense, it all was sort of a continuous journey. I bought that first personal computer. My wife and I were both law students. Loved it so much, that then, my first job after law school was working in the federal courthouse for a federal judge in Manhattan. And so I literally took the equivalent of ten percent of my annual salary and bought a new, improved personal computer, took it into the courthouse where there had not been, and there were not, PCs, and then applied for a job in the law firm in Washington, D.C., and when I got the offer, I said I would only accept it if they would give me a PC on my desk. Happily, they said yes. It was such an unusual request for someone to make at that time that everybody in this large law firm of about two hundred and fifty lawyers said, there’s this weird kid on the eighth floor who seems to know something about computers. And so I had an opportunity arise to start to do legal work for Microsoft. I loved it so much, when they asked me to join the company in 1993, I said yes. It was supposed to be a two-year leave of absence, I had just become a partner at the law firm, and that was more than twenty six years ago.

Host: And here you are now, President of the Mothership.

Brad Smith: It’s something!

Host: Right?

Brad Smith: Yes.

Host: Well, this has been fantastic, Brad. At the end of every podcast I ask my guests to share some insight or wisdom with our listeners and usually they’re seasoned researchers at MSR speaking to some version of their grad school self. But you’re in a unique position to offer advice from a different perspective. So what would you say to our audience, many of whom are the very people who will shape the technology that will shape our world for the decades to come?

Brad Smith: I would say three things. One, always push the edge of the envelope without quite busting the entire door down because that’s when you end up, you know, fraying relationships and finding it more difficult to get things done. But push the edge of the envelope. Have confidence in yourself and take those creative ideas within you and pursue them. The second thing I would say is, balance that with a sense of humility. I actually think that the great superpower that we have in the Nadella years here at Microsoft, and something that I’m absolutely passionate about, is what I’ll call the power of humility. I like to joke across Microsoft, no one ever died of humility, but it really helps you stay curious. It helps you ask other people good questions. It encourages you to listen and not just talk, and stay focused on getting better. And finally, I would say, at the end of the day, it’s great to be smart, it’s great to be successful, but it’s better to be honest. To have a sense to integrity. To me, the favorite story, perhaps, that Carol Ann and I tell in the book, is one that involved me personally. And it was a story where we had stated publicly to our customers that we would sue the federal government if the government came asking for their data without, in this case, organizations being allowed to know. And you know, when our litigators came and said we shouldn’t pursue this case because we were likely to lose, and it was likely to be expensive and painful, I said, look, I’d rather be a loser than a liar. It’s okay to lose. Everybody does sometimes, and then you bounce back, but if you lie, if you sacrifice your integrity, I do think you pay a price for that for a very long time. So, be ambitious, be humble, be honest. It’s a good recipe. It serves people well.

Host: I think that needs to be on a bumper sticker.

Brad Smith: I’ll work on shortening it even more!

Host: Yeah! Brad Smith, thank you so much for joining us today. It’s been a real treat.

Brad Smith: Thank you. Thanks for having me!

To learn more about the research behind the tools and the researchers who do it, visit Microsoft.com/research

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Standing up for every Dreamer

They came to the United States as children, brought into the country undocumented by parents with dreams of a better life. Many were so young when they arrived that they have no recollection of their place of birth. We call these young people Dreamers – students, employees and military soldiers who aspire to make the country where they have lived most of their lives a permanent home.

In 2012, the United States created the Deferred Action for Childhood Arrivals (DACA) program to protect these young people from being deported. Yet just five years later, the program was rescinded, putting close to 700,000 DACA recipients at risk of being banished from the only home they’ve ever known.

More than five dozen of these DACA recipients at risk are Microsoft employees. These young people contribute to our company and serve our customers. They help create our products, secure our services, and manage our finances. And like so many young people across our nation, they dream of making an honest living and a real difference in the communities in which they reside. Yet they now live in uncertainty.

We’ve told our Microsoft Dreamers that we will stand up for them along with all the nation’s DACA recipients. We’ll represent them in court and litigate on their behalf.  That’s why we joined Princeton University and Princeton student Maria De La Cruz Perales Sanchez to file one of the three cases challenging the DACA rescission that will be heard on Nov. 12 by the United States Supreme Court. We will be there in person, along with a group of our employees, to show our support for DACA recipients.

For Microsoft, the decision to bring this case was straightforward. We believe Dreamers are worth protecting. The case speaks to the impact the rescission has on our business, company, employees and the hundreds of thousands of Dreamers across the country. It also has a broader impact on the country’s flow of talent and innovation economy, a perspective that we share with Princeton. Like all research- and innovation-focused organizations, both Microsoft and Princeton depend on the ability to attract talent from around the world. It’s essential not just to us, but also to our country’s ability to compete on the world stage.

Amidst this broader discussion, we also need to remember the individual stories of Dreamers and the contributions that they make. While the number of Dreamers is large, every number is a person and each person is an individual. In short, behind each number there is a unique and important story.

For example, one of the nation’s Dreamers is a young woman, a Microsoft service and security engineer, who was born in Mexico and brought to the U.S. at the age of 4. She thought she was an American citizen until the day, years later, when she asked her mother to sign a permission slip for a school experience in Japan. That was the day that, with tears in her eyes, her mother told her she could never leave the country because she would not be allowed to come back. Inspired by her mother’s sacrifices for her and her siblings, in 2012 she followed her passion for technology through DigiGirlz, a program supported by Microsoft YouthSpark that gives girls the opportunity to learn about careers in technology. After years of commitment, further coursework, and unending grit, she is now building the next chapter of her story at our headquarters in Redmond with our Microsoft 365 team, thanks to DACA. At a time when cyber-attacks are increasing, she is using her skills and experience to help protect our customers across the country and around the world.

Another one of our employees is a Dreamer and software engineer who was born in Tepic, Mexico, and brought to the U.S. when he was only four months old. Growing up in Los Angeles, he and his family lived close to the poverty line for most of his childhood. He excelled in school and earned a bachelor’s degree in Computer Science from California Polytechnic State University. His talents led to multiple offers for engineering roles at top technology companies, and we are thrilled that he is now part of our software development team near Seattle. Today he works to enhance productivity and performance for Azure, the cloud platform that is empowering customers of all sizes across the country – including government agencies – to transform their work. He is part of the team that helps make this transformation possible.

There are so many more stories like those, within and beyond Microsoft. For us, this fight is not just about our employees. It’s also about the potential impact of DACA rescission on the hundreds of thousands of Dreamers, on businesses across the country, and on the innovation economy that is central to the nation’s prosperity. Roughly three-quarters of the top 25 Fortune 500 companies have confirmed that they employ Dreamers.

While we are the only company among the plaintiffs of the consolidated cases now before the Supreme Court, we know we represent employers of all sizes in making the case to uphold DACA. Last month, more than 140 companies and associations showed their support in a brief filed before the Court. They wrote about the serious harm that would be inflicted on the economy if we were to lose the contributions of Dreamers.

While the case before the Supreme Court is of fundamental importance, we also appreciate that it is insufficient in addressing the permanent needs of the nation’s Dreamer population. The only path to stability for Dreamers is a pathway to citizenship. And citizenship in this case can only come from Congress.

We also recognize that the Dreamers are one part of the broader immigration challenges we face as a nation. We are committed to constructive steps to attract and retain talent that helps fuel innovation and grow our economy for the benefit of every American. This includes reducing the green card backlog and constraints on high skilled visas. Innovation has been vital to the nation’s history. It needs to be equally fundamental to the country’s future – a future that requires creating more opportunities for those born in the United States as well as long-lasting solutions that support individuals like the Dreamers that have come as children from other nations

To read our merits brief on the case, click here.

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First reviews for new book ‘Tools and Weapons’ by Microsoft Pres. Brad Smith and Carol Ann Browne

“When your technology changes the world,” he writes, “you bear a responsibility to help address the world that you have helped create.” And governments, he writes, “need to move faster and start to catch up with the pace of technology.” 

In a lengthy interview, Mr. Smith talked about the lessons he had learned from Microsoft’s past battles and what he saw as the future of tech policymaking – arguing for closer cooperation between the tech sector and the government. It’s a theme echoed in the book, “Tools and Weapons: The Promise and the Peril of the Digital Age,” which he wrote with Carol Ann Browne, a member of Microsoft’s communications staff.

The New York Times, Sept. 8, 2019


In 2019, a book about tech’s present and future impact on humankind that was relentlessly upbeat would feel out of whack with reality. But Smith’s Microsoft experience allowed him to take a measured look at major issues and possible solutions, a task he says he relished.

“There are some people that are steeped in technology, but they may not be steeped in the world of politics or policy,” Smith told me in a recent conversation. “There are some people who are steeped in the world of politics and policy, but they may not be steeped in technology. And most people are not actually steeped in either. But these issues impact them. And increasingly they matter to them.”

Fast Company, Sept. 8, 2019


In ‘Tools & Weapons: The Promise and the Peril of the Digital Age,’ the longtime Microsoft executive and his co-author Carol Ann Browne tell the inside story of some of the biggest developments in tech and the world over the past decade – including Microsoft’s reaction to the Snowden revelations, its battle with Russian hackers in the lead up to the 2016 elections and its role in the ongoing debate over privacy and facial recognition technology.

The book goes behind-the-scenes at the Obama and Trump White Houses; explores the implications of the coming wave of artificial intelligence; and calls on tech giants and governments to step up and prepare for the ethical, legal and societal challenges of powerful new forms of technology yet to come.

-GeekWire, September 7, 2019


Tensions between the U.S. and China feature prominently in Smith’s new book, ‘Tools and Weapons: The Promise and the Peril of the Digital Age.’ While Huawei is its own case, Smith worries that broader and tighter strictures could soon follow. The Commerce Department is considering new restrictions on the export of emerging technologies on which Microsoft has placed big bets, including artificial intelligence and quantum computing. “You can’t be a global technology leader if you can’t bring your technology to the globe,” he says.

-Bloomberg Businessweek, Sept. 7, 2019


Tell us what you think about the book @MSFTIssues. You can buy the book here or at bookstores around the world.

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Available today: ‘Tools and Weapons: The Promise and the Peril of the Digital Age’ by Brad Smith and Carol Ann Browne

A day we’ve long anticipated has finally arrived. Today, the new book that Carol Ann Browne and I have written, Tools and Weapons: The Promise and the Peril of the Digital Age, publishes by Penguin Press and Hodder & Stoughton in North America and English languages around the world. We chose the phrase “Tools and Weapons” to capture the paradox of technology. While tech companies like Microsoft create products and services to serve humanity, that same tech is being weaponized to inflict harm. And more indirectly, many of the issues people debate today, like income equality, trade, immigration and globalization, are all enabled and fueled by technology.

These challenges affect us all, no matter where we live, fostering a new age of anxiety. Tools and Weapons starts with the proposition that if your technology changes the world, you bear a responsibility to help the world navigate these changes. We wrote the book to make these issues more accessible to people and to examine ways to address them.

As we worked on the book, Carol Ann and I reflected on several stories drawn from current events, issues faced by Microsoft, and history. Why history? As we delved into the issues, we realized most have parallels from the past. The horse lost its job to the car, trains forced interstate regulation, the public revolted against the radio in the 1940s, and people feared that early cameras and the advent of street lamps would invade their privacy. But what’s different today is the speed of change. In a way, the issues created by today’s technology aren’t unprecedented, things are just moving a lot faster.

Tools and Weapons opens with a tour of what has become the world’s filing cabinet – the cloud. While the cloud is the underpinning of almost every aspect of society, most people don’t understand what it truly is: a massive fortress of concrete and steel. And while there is no cloud without a data center, these complexes are shrouded in mystery. We realized that to understand how the world really works today, you need to visit a data center. That’s why we open the book by taking the reader on the type of tour that typically is available only to a few industry insiders.

I hope that when people read this book, they will gain not only a better understanding of the forces changing our world, but also a sense that there is a promising way forward. It is a path that requires the entire technology sector to change and take on more responsibility. It’s also a path that requires governments to do more, to move faster and change as well. Fundamentally, it’s a path that requires that we work together in very concrete ways to bring together people who create technology, people who use technology, people who govern technology, and people who are impacted by it. As the book illustrates with concrete and colorful stories, we believe that this will provide the best approach to address issues that range from privacy and security to the development of artificial intelligence and the impact of technology on our jobs and international relations between nations, including the U.S. and China.

And there is one other thing that was very near and dear to our hearts. For all of us who like to read, as Microsoft CEO Satya Nadella has said, we all buy more books than we start and we all start more books than we finish. We had a clear goal throughout our writing process and that was to write a book that we hope people will enjoy reading. I hope you enjoy it. Please tell us what you think on LinkedIn or Twitter.  

Tools and Weapons is available today in the English language at retailers including Amazon, Barnes and Noble, and International Booksellers. Editions in additional languages will publish in the coming months. To learn more, visit the Tools and Weapons website and register for public events in your city.

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