 I have now, of course, to talk about technology with Satya Nadella, the CEO of Microsoft is, of course, even more exciting. It's more exciting that you have joined Microsoft if I'm not mistaken, 30 years ago exactly, and you are the CEO since 2014. You just have to look at the value creation, then you know how successful those years were. I should also mention that Microsoft, that's where they can reform. You are one of our most engaged strategic partners. I asked my people and I heard that we are engaged together in 36 different initiatives which the forum is running. So, a great thank you. Now, we just have a discussion and not a big speeches. When we look now, we discuss a lot during this meeting, how the world has changed completely since we met last time, and the leadership style must also have changed. How did you adapt? What did you see as necessary adaptations in your leadership style compared to before, let's say, the crisis came and overwhelmed us? Yeah, one of the biggest, I think, points of reflection I have is, you know, we went all of us simultaneously for the first time into a tale event together. So, the pandemic was where the entirety of the planet were faced with a crisis together. And the thing that at least I came out of this with is a much more keener sense of what caring looks like. So, for example, just before we went into the pandemic, Microsoft had this management training program we put in place, it's called Model Coach Care. I must say, it was just great timing, because that caring became the currency during the pandemic, because every one of us had to care for each other, every manager had to care for the connection they had with their people. So, if you ask me this, what is that leadership quality that I think each of us has to build more muscle in? It's that caring, because the reality is, all of us are going to have tale events that are going to be different. So, when we now think back of whatever is the normal life, I think we have to realize that that ability to be in other people's shoes, have a sense of caring, I think it's probably one of the most important things. So, brains is not enough, you need a heart today. Yeah, for sure, for sure. If you're going to make it together, I think you need your heart and your brain functioning together. Yeah. Now, turning to technology, Microsoft of course is a leader in technological development. If you look a little bit more to the future, what excites you most? Look, I mean, I think, when you think about technology, the point to reflect on is, what's the opportunity to be 10x, 100x better, right? What's the thing that we can be doing today, investing in today that's going to change something, you know, which is 10x, 100x better? I always go to three layers of technology. And all, in fact, if you look at all the enterprise value creation throughout the history of at least digital technology, it has always come down to what I think of as the core infrastructure, the core middleware, and the core interface. So if you sort of take, let's take the infrastructure layer, the cloud, as we know of it, I mean, take Ukraine today. The reason why Ukrainian government and a lot of critical infrastructure is able to continue to function in a very resilient way is thanks to the cloud infrastructure. So in fact, we were able to work with the Ukrainian government, migrate their systems, and in some sense, have the continuity. So cloud is becoming more and more ubiquitous. And another great example I came across recently is, you know, NASA for the space, you know, the International Space Station, they need to keep this, the integrity of the suit, suites very high. So in order for the gloves, you can't have any malfunction. So they have now computation that is happening in the space station because the latency is too high. So the infrastructure itself, thanks to 5G, thanks to space, is really spreading everywhere. The second layer, of course, is what's happening with these large AI models, right? We used to think about speech being separate from, you know, natural language and vision. Guess what? Going forward, when I look at what we've done with our partner OpenAI in terms of building these large, dense, multimodal models like GPT-3, they are showing real emergent intelligence. In fact, we put something called the co-pilot into GitHub. So if you take the white collar job of software developer, 30% of the code of anybody who is writing code in Visual Studio and GitHub is being generated by these large scale AI models. So I think having a co-pilot for every cognitive task is right within our grasp. And then the last area is the metaverse, right? The idea that you can have the digital and the physical come together as, in fact, what you envisioned in the forum itself with the Global Cooperation Village, I think is a great example of the three areas where infrastructure becoming more ubiquitous, AI changing pretty much every application experience, and having much more immersive experiences. I just should add, I mean, this project which we are working together, it is for the public good. And it shows also how you can apply new technologies and be pioneer in applying new technologies for the public good. Yeah, it is. In fact, for those of you who have not seen it, it's a fascinating, and Professor Schwab came up with this idea of saying, what does multilateralism look like for multi-stakeholder cooperation, collaboration look like between business, governments, civic society, and academia in a world where we can, how do you create a space like that using the metaverse? So we, along with Accenture cooperated using our mesh platform, built this exhibit for the one trillion trees, which is pretty phenomenal. If you go visit it, I think what you come out with is a deeper appreciation of how collaboration can be enhanced when you have that co-presence, when you are together in a physical space which you immersively are able to feel. Your understanding, in this case, if you are in the Sahel, you see the Baobao tree, you understand the importance of reforestation. You keep the fruit in your hand. Yeah, you have the Baobao fruit. You can even understand how if that was marketed, it could help, in fact, that region. And so I think your deeper understanding of the challenge and the opportunity, I think, is fantastic. And the other, I would say the story behind this is, there's four different organizations across six time zones cooperating. So they built the digital twin of the space. So even the design process was pretty phenomenal to see and the fact that they could land here and within less than a day, get it all functioning, I think is also tells the story of what can happen. And it was only five months ago when we had the first phone call to discuss this initiative. And it's amazing what you can do when you have a clear vision, what you always had for the company. Let me come back to our discussions in the earlier years. We talked a lot about regulations and regulations to data and privacy. And now, what is needed today, you feel? I mean, regulation is still the newest regulations of CEU and so on. What is your thinking? And how can we assure the right regulation to protect the consumer? First of all, at this point, given the pervasiveness of digital technology in our society, in our lives, in our work, I think it's inevitable to have stronger regulatory regimes around all facets of technology. If anything, I think the responsibility of stakeholders like ourselves or businesses like us is to both anticipate and adapt to regulation, versus ignore it or expect not to have regulation. Obviously, with privacy, European Union with GDPR took the lead. And now, even with digital services regulation, I think even with internet safety and moderation, I think there's a lot of regulation coming out of the European Union, which I think are going to set standards. In fact, the way we even took GDPR, for example, we took the subject rights of GDPR and made it worldwide. So that is, I think, the approach we will take. The other thing about regulation, though, is you have to ensure that you have the design process. So it's not about just how do you meet the regulatory standard, how do you ensure that the entire organization's process of building technology ensures that the regulatory framework around privacy, AI ethics, internet safety are all things that you take into account starting at the design side. Because in technology, many times, it's very hard to fix things at scale. You have to start by really thinking about regulation at unit of scale of one, versus seven billion people. So it's regulation, no, adapting to regulation by design. That's right. By design. Now, one of the issues we also discussed previously is the trust in systems, the digital system. You have to have trust, not only, let's say, related to technology, but also how it affects the trust inside society. I mean, we see it with the social media and so on. And suddenly you have an additional complication with cyber security, cyber crime. My question is, how you are so much exposed as something could happen. How does Microsoft deal with this whole cyber security and trust issue? And you mentioned already, but I would like to come back to Ukrainian crisis because it increases the alertness. I mean, even, I may add here, for the World Economic Forum, you can imagine, we have a great cyber security team, but you can imagine how much we invested to protect our system here when we felt particularly vulnerable. But Satya, what do you do? Yeah, in fact, it's very related even to the previous conversation we were having on regulation. But trust, I mean, fundamentally, I think it's not something you can claim, it has to be earned. I think that's sort of the place to start. And having said that, I also think of trust, at least from a Microsoft perspective, or a business perspective, you've got to start out something much more foundational, right, which is the social purpose of the company, the business model of the company needs to have trust with the broader society because after all, if you don't have that, then pretty much anything you do is not going to be trustworthy. But assuming you are a trustworthy participant because when you do well, the world around you is doing well, then I think all these considerations, privacy, cyber security, AI, ethics, internet safety to take four, I think are super important criteria. In all of these, at least in engineering, we call shift left is very important. What I mean by that is take something like cyber security. Before we think about protection, you want to make sure by design you're building systems that are secure. So this is a place where some of the best design work, tooling work, testing work needs to be done such that any digital system that's being built is secure by design. So we are investing, same thing with AI ethics, right? So for example, what is debugging a biased AI model look like? What are the tools available to a software engineer so that they can make sure that bias doesn't get introduced or even moderation with internet safety? I think these are all very important ones. Or governance and privacy. For example, you can't say we will deal with privacy as an after effect, but you want to have real governance on all the data. So to me, that's, I think, at the core. So what happened, for example, in the Ukrainian case was, we were able to, because of our cyber capability, because of the trillions of signals we see, long before, quite frankly, the attack started, the Russian activity on critical Ukrainian infrastructure, and we were able to work then with the Ukrainian government to really evacuate them effectively into our cloud and protect them. And we published a last month a very detailed report because our stance is that we will always be there for any partner of ours in their defense. And so we're going to use both our security products as well as our security signal to ensure that we protect any organization that is under attack and publish all of that information so that it can be broadly shared. And so I think cyber is a place where, again, multiple stakeholders coming together to improve the cyber readiness of all of our organizations. I think it's going to be very, very important. This is between governments and private organizations and between private organizations across the globe even. If I just may follow up here, you mentioned, you did an analysis of, let's say, protection in Ukraine. Could you share with us what the key conclusions of the analysis was? Well, I mean, the key conclusions were that you have multiple cyber actors sponsored, in this case, by the state, going after critical infrastructure that can completely compromise the functioning of a government or the broader society. So the other piece is the weakest link can be exploited to then hit hard at everything else. So that's the other issue with the connected world. There is no such thing as an isolated system. So a one week link, that's why even in the United States we care so much about every municipality, every state has to be protected. Because otherwise you can start with an attack in one small place and it can easily spread. I come back to the answer to my first question, where you said a caring leadership. Now, you know, Satya, we have a lot of discussions going on and the forum was very much engaged into the development of ESG metrics. And some people, of course, would say would be opposed. And it has become very much also a technical matter. But you could argue, I mean, it's not a technical issue. It's an issue of corporate success because without taking care of people, without taking care of the planet, you don't have the trust of people anymore. Would you agree? And would you feel that a company trust comes only out of how you lead the company and how people feel? Or do you have to document it your performance in some way? Yeah, it's a great question, right? I mean, I go back, in some sense, the question is what's the social purpose of a corporation or a business? Do we need businesses or not? I mean, it's a good question to ask. And obviously, I believe that there is a social purpose of a corporation. In fact, I like the definition, but Colin Mayer came up with where he talks about the social purpose of a corporation is to create profitable solutions to the challenges of people and planet. And the key words for me being profitable, because after all, corporations do need to allocate their resources well so that they can generate profit for their shareholders. But the solutions are to the challenges of people and planet, which is the broad stakeholders. But I would even add one additional thing to that definition. I think every company like ours also now has to earn the license to operate in every country and community at a time, right? So when people sort of look at a multinational company and say it's a soulless place, I mean, where do you belong? You actually have to prove that you belong everywhere you operate by creating local surplus, local benefits to the community. And so I think that that's at least when I look at Microsoft, I feel that that's the core sense of purpose we have and the social contract we have that in every country, when we come to Switzerland, I should be able to point out how are the small businesses of Switzerland more productive because we are participating or the public sector more efficient or the large multinationals of this country that are globally successful because of some input of ours. So I think that that core is super important. But the interesting thing, though, is to your ESG point, it's not even let's do some ESG on the side. It's integrated into your core business model. So when we think about growth, it's got to be equitable growth. So when we are working, let's say in Africa, we've got to ensure that we're working to create broadband connectivity infrastructure. In fact, we've done that with some of the work we've done there for around 7 million people. Or we're making sure that our own operations are planet-positive. So we're doing that with our own sustainability commitments. So I think that that approach to ESG, where it's not on the side, but it's integrated into the core business model and operation, I think is how we'll all be measured. I think this integration is very important because I even have some difficulties to accept when people speak about social responsibility. Because a company, on the one hand, is certainly an economic unit to create prosperity and certainly to create profits. But on the other hand, a corporation is a social unit. It's part of society. So social responsibility is a natural consequence of looking at a company as a social organism who has to take care of society. Yeah, absolutely. Because I think that's the core license to operate comes from that. You don't get a license to operate as an economic agent, I believe. You get it because you've created surplus for the society at large. Now, if I take, let's say, this social dimension and I look particularly at your employees, Satya. And the last two years have created a completely new conception of the nature of work. And I know you also had home office and so on. How did the last two years and the pandemic change, let's say, your relationship with your employees? Yeah, it's sort of very related even to the very first question you asked as to sort of what's that leadership principle that perhaps you've learned. And I talked about caring. But one thing that I've been thinking a lot about in relationship with our own employees and our go forward, what does it look like? I think we were interestingly enough, coming out of this pandemic, gotten to a point where we need to re-found the company. Because I borrowed this phrase from one of my colleagues at the Microsoft Board, Reed Hoffman, who wrote about re-founding as something that needs to happen from time to time in companies. And I feel that this is a great time to think about re-founding. Because after all, here's the thing. I used to say we hired 60,000 people, Klaus, over the last two years. A lot of growth. That's like 40% of the company or so. And then we said, oh, we now need to onboard them. Then I realized that it's not the 60,000 people. In fact, the entirety of the company needs to be re-on-boarded. And so we are going through that. So essentially conceptualizing, re-founding the company for a changed world, changed times. Because I think none of us are coming out of this pandemic assuming we're going to go back to 2019. We have to find a new way going forward. And in that context, employees and their expectations are paramount. And so I think that it's a great place for I think all of us, is they are one of the most important stakeholders. We always talk about employees. Without employees, there's no company. Whether it's about their compensation or whether it's about their need for flexibility and their changed expectations from leadership and management. The lived culture experience, I think are all places where we have to re-found our mission and our culture. And that's definitely something that we are hard at work at. I would define it in the following way. When before the pandemic, we very much were talking about life, work, balance. But now after the pandemic, we have to talk about work, life, integration. Because we have some professional life at home. We should also enable probably people when they are at work to take care of their family. Would you agree? Absolutely. In fact, I think when people talk about flexibility, that's what that is. Which is, all of us have to harmonize our work and life, as you said. And in order to do that, each of us needs flexibility and any workplace. In fact, one of the interesting data points I have is on LinkedIn, if you go and look at the jobs which now publishize the flexibility they provide, it's the fastest growing attribute of new jobs. So I think it's now becoming an expectation that the workplace will integrate with people's need for flexibility so that they can achieve what you just described as the harmony between work and life. You could also take this point a little bit forward, more forward than you could say. In order to create this harmony, the purpose of the work is much more important. Because in the old world, you went for work in order to earn your living. But now, in this new world, when you have the two combined, actually you speak about your life purpose. Yeah, in fact... Would you... Yeah, in fact, people talk about what's happening in the labor market as great resignation. The reality is, if you look at the data, it's really not the great resignation. It's the great reshuffle. Because people are actually not leaving the workforce. They're changing their jobs because they want either a different profession, a different industry, or a different company. And so one of the things to your point, it is about really finding the meaning in your work where what you want and what the company is doing are resonating. And I think that that's going to become very, very important. And it's fantastic. I think, in general, an empowered employee, an empowered labor movement, I think is a much-needed thing for companies to really get to a place where they're able to thrive. Because otherwise, if work is transactional, I think the company suffers. Yeah. But, certainly, in reality, I mean, in the daily life of the company of Microsoft, how do you implement it? What are, what would you say, what are the key facets of this integration? To me, that's why I think I look at even my job and the job of every leader and every employee. It's the lived culture. Like, ultimately, what is a company? A company is what happens to me every day when I walk into the company. Am I able to bring my best, do my best, and get deep satisfaction in meaning? If that is not achievable, it's very, very hard to sort of talk about a lot of concepts in the abstract. So I think I always bring it down to lived experience. And that lived experience is not going to be perfect. Now, no company is going to be perfect all the time. But can we, in our case, one of the greatest blessings we've had is we took Carol Dweck's work on child psychology around growth mindset, took that and adopted that as our cultural meme in terms of confronting our fixed mindset each day. And that has been super helpful, Klaus, because it gives even me every day, I'm not perfect, but can I go learn and help get better? And that attitude or that approach to culture, I think is the only way to help everyone. To your point, implement a lived culture that really thrives and strives to get better. To change for a moment, we have just some in its left, but to change the subject and to take something up, which is very much in the mind of participants here, it's the value chain and see how do you home shore or reshore to create much more resilience in your system. And I coined the expression of trust-shoring, which means you have to look not only at your company partner to have trust into him, but also the government which is behind. Does this have an influence on your corporate policies? Yeah, for sure. I mean, I think what the world sort of realized is perhaps a couple of things. One is a super optimized value chain may not be the most resilient value chain in times of crisis. So therefore thinking about the tail event impact on what is your resilience is now, I think not a tabletop exercise, but I think every board, every company, every country is going through. But take Ukraine, it's actually very interesting. If Ukraine in the name of sovereignty did not have the ability to migrate all of their critical systems to a public cloud that's running in Europe, it wouldn't be resilient. So I think even the definition of what resilience looks like and continuity looks like also has multiple dimensions. But there is certain amount of nearshoring, certain amount of reconfiguring, certain amount of multiple sourcing. This I think is all going to become very, very key because in other words, you have to test for all kinds of tail events. The next tail event may not be the type of thing that we had and it may not be a pandemic, it may be something else. But the point is, do you have resilience? And I think that that's definitely an exercise, every business in every country is going through. But I do believe that connectivity is still important because that is not, you know, in some sense, connectivity is needed for resilience. But what type of configurations are there in the connective tissue? That's I think the real question. So it's the inter-operation ability which counts? Yeah, I think in terms of network paths. See, the thing is whenever you have a graph that has got only a single path, it's problematic. But if you have multiple paths, then you can traverse the graph much more easier. And that I think is, so that's why it's a supply web and not a supply chain. One very last question. You are now, if not the highest valued company, where is the limit? Where do you see the limit for? You had so tremendous success in the last years. Where do you see a limit? I, look, I think- If there is a limit. At the end of the day, our growth is subject to the following limit, right? Which is the world around us, I always say this, which is Microsoft will only do well when the world around us is doing much better. So in other words, there is no way for Microsoft to be successful given our business model if the input we produce, which is digital technology, is not creating tons of value added output that is leading to economic growth in the world. So if there's one thing that I think we all have to still strive for is inflation adjusted economic growth in the world that is aligned with the planet that is more equitable, right? And that to me is going to be the most important thing that we will have to achieve in the world in order to earn our right to continue as a business. So I think on behalf of the participants, I wish you a good pass into this future. Thank you. Thank you very much.