Thank you, Mike.
We’re off to a strong start in fiscal 2021, driven by the continued strength of our commercial cloud, which surpassed $15 billion in revenue, up 31% year-over-year. The next decade of economic performance for every business will be defined by the speed of their digital transformation.
We’re innovating across the full modern tech stack to help customers in every industry improve time to value, increase agility and reduce costs.
Now, I’ll highlight examples of our momentum and impact starting with Azure.
We’re building Azure as the world’s computer with more data center regions than any other provider, now 66, including new regions in Austria, Brazil, Greece, and Taiwan.
We’re expanding our hybrid capabilities, so that organizations can seamlessly build, manage and deploy their applications anywhere. With Arc, customers can extend Azure management and deploy Azure data services on-premise, at the edge or in multi-cloud environments. With Azure SQL Edge, we’re bringing SQL data engine to IoT devices for the first time. And with Azure Space, we’re partnering with SpaceX and SES to bring Azure compute to anywhere on the planet. Leading companies in every industry are taking advantage of the distributed computing fabric to address their biggest challenges. In energy, both BP and Shell rely on our cloud to meet sustainability goals. In consumer goods, PepsiCo will migrate its mission critical SAP workloads to Azure. And with Azure for Operators, we’re expanding our partnership with companies like AT&T and Telstra, bringing the power of the cloud and the edge to their networks.
Just last week, Verizon chose Azure to offer private 5G mobile edge computing to their business customers. When it comes to data, Azure brings together cloud native, limitless data and unmatched analytics. Nearly 1 million SQL databases are migrated to Azure to date, and we process more than 1.4 trillion customer queries each day. The number of petabyte scale workloads running on Azure has more than doubled year-over-year. Azure Synapse redefines cloud analytics by bringing together enterprise data warehousing and big data analytics. With Synapse Link, customers can run real-time analytics over their operational data. They can build advanced AI models using Azure Machine Learning to identify trends and predict outcomes. And with Power BI, anyone in an organization can access these insights and build custom dashboards. From Electrolux, GE Aviation and Rockwell Automation in manufacturing to Marks and Spencers and Myntra in retail, businesses are choosing Synapse to accelerate time to insight across their organization. They’re also leading in AI in its enterprise applications. Azure Cognitive Services make it easier for organizations from Airbus to Volkswagen to build applications that see, hear, speak, search, understand and accelerate decision-making.
We’re going further to meet some of our customers’ biggest challenges today, introducing new capabilities to understand people’s movements in physical space and detect anomalies and metrics. And our partnership with OpenAI brings leading edge large scale AI models such as GPT-3 to Azure.
Now, to developers.
As software developers become critical to value-creation in every industry, their productivity is key to business performance.
We have the most widely used and loved tool chain to help developers rapidly go from idea to code, and code to cloud.
With the most popular code editing tools, Visual Studio, as well as VS Code, developers are more productive than ever. With GitHub, more than 70% of the Fortune 50 build software together. And with Azure, they have the best-in-class services to build the cloud native apps and modernize existing ones.
New code scanning capabilities in GitHub help developers find security vulnerabilities before they reach production. And new integrations between GitHub and Power Apps enable professional developers and domain experts to collaborate. At the PaaS layer, we’re innovating to help developers build modern applications.
New Azure Communication Services enables any developer to integrate rich communication APIs into their application, using the same infrastructure that powers Teams. With Azure Mixed Reality Services, the entire world is an application canvas. Lockheed Martin, for example, is using Azure Mixed Reality and HoloLens to speed up the development of the Orion spacecraft.
Now to Power Platform. More than ever, companies need to empower domain experts to increase the rate of digitization across the enterprise. Power Platform is the only low-code/no code solution that enables anyone in an organization to rapidly create an application, build a virtual agent, automate a workflow, or analyze data. Power Platform now has more than 10 million monthly active users at more than 500,000 organizations, from IKEA to Toyota. PayPal, for example, is using Power BI within Teams to expand access to data insights. More than 1,900 organizations have signed up to use the Return to the Workplace solution to help keep employees safe and healthy when they go back to the office. The Los Angeles Unified School District plans to use Power Platform to help keep 700,000 students and educators safe across more than 1,400 schools when they reopen.
Now onto Dynamics 365.
As organizations look to move from being reactive to proactive, they are choosing Dynamics 365. From AEP and Chipotle, to Ingram Micro and Walgreens Boots Alliance, we are seeing strong adoption of our customer data platform, Dynamics 365 Customer Insights. More companies are turning to our mixed reality solutions to keep employees connected with experts even when they are apart. Mercedes Benz is using Dynamics 365 Remote Assist to help technicians across its U.S. dealerships service increasingly complex cars faster. And BHP is using the solution to keep employees at mining sites in rural Australia safe.
Just yesterday, we announced a partnership with C3.ai and Adobe to bring to market a new class of industry-specific CRM solutions, powered by Dynamics 365. And our first industry-specific cloud, the Microsoft Cloud for Healthcare, will become generally available later this week. It brings together healthcare-specific capabilities from across Dynamics 365, as well as Microsoft 365, Power Platform, and Azure, to help providers like Cleveland Clinic and St. Luke’s Health Network improve patient outcomes.
Now to LinkedIn. Amid a rapidly changing work environment, LinkedIn is where more than 722 million professionals go to connect with their communities, learn new skills, and find new opportunities. We saw record levels of engagement again this quarter. We launched our most significant redesign, with a streamlined search and messaging experience, as well as new ways of connecting and sharing with Stories. More professionals are turning to LinkedIn Learning to increase their knowledge capital, watching more than 1 million hours of content each week, more than double the amount a year ago. Three people are hired every minute on LinkedIn, and new features make it easier for nearly 40 million job seekers to indicate they’re looking for their next opportunity. In marketing solutions, advertiser demand on LinkedIn returned to near pre-COVID levels, up 40% year-over-year, as marketers use our tools to connect with professionals ready to do business. And organizations continue to tap into the combination of LinkedIn Sales Navigator and Dynamics 365 to ensure salespeople have the context they need to sell remotely.
Now to Microsoft 365. PCs have become mission critical to sustain work, learning, and life at home and maintain business continuity in the enterprise in a remote everything world. Windows 10 monthly active devices are up double digits year-over-year, across commercial, consumer, and education. And, we will have the largest lineup of Surface and OEM devices ever this holiday season to support every person and work style. Microsoft 365 is the comprehensive suite of productivity apps and experiences people use and rely on every day. Teams now has more than 115 million daily active users.
We are seeing increased usage intensity as people communicate, collaborate and co-author contents across work, life, and learning. All up, Microsoft 365 users generated more than 30 billion collaboration minutes in a single day this quarter. Teams is the only solution with meetings, calls, chat, content collaboration, as well as business process workflows in a secure, integrated user experience. And, as companies move online, they also want one unified platform from meetings to phone systems, which Teams delivers. The key to productivity is to move beyond transactional meetings and stay in the flow of work and maintain business process context. That’s where Microsoft 365 and Teams stand out.
You collaborate on a PowerPoint presentation before a meeting and share it with participants in SharePoint.
If you miss a meeting, you can access a recording via Stream and catch up via persistent chat. Action items can automatically be assigned in Lists. With Power Platform in Teams, you can build custom productivity apps using lists as the data source. And you can even connect Dynamics 365 to Teams so you can see customer information and take action. It’s clear that people will need more flexibility in when, where, and how they work.
We are adding reimagined workspaces in Teams for every collaborator, remote, in-person, or on the go, and we’re accelerating our innovation for both first-line and knowledge workers, with over one hundred new capabilities in the last six months, including breakout rooms, meeting recaps, shift scheduling, and large scale digital events up to 20,000 participants, to help people transcend both time and distance. Employee health and wellbeing is a top concern for every CEO.
We are innovating with new experiences to help people prioritize wellbeing in the flow of work.
New insights in Teams provide personalized recommended actions, making it easier for employees to create healthy work habits and for leaders to build high-performing teams.
New virtual commute gives structure to the remote workday with scheduled cognitive breathers. And, Together Mode is helping employees at companies like Office Depot reduce video fatigue. More broadly, we are accelerating our innovation across Microsoft 365.
New Microsoft Stream is the video platform for the enterprise, making it easy to create, share, and discover videos at work. Transcription and voice commands in Word help people save time. And SharePoint Syntex makes it easier to find and work with content across the enterprise.
We are seeing Microsoft 365 momentum in every industry. In education, nearly 270,000 institutions are using Teams to power remote learning and improve learning outcomes, including the University of Nottingham in the UK, Morehouse College, the University of South Florida, and some of the largest school districts in the United States, like Miami Dade County Public Schools. In sports, the NBA and NFL are reimagining the gameday experience for fans. PepsiCo will deploy Microsoft 365 and Teams to its 270,000 employees worldwide. And, Morgan Stanley, PricewaterhouseCoopers, and Prudential Financials all chose Microsoft 365 E5 this quarter for differentiated security, compliance, voice, and analytics.
Now to security.
We are the only company that offers end-to-end capabilities to protect and manage data, devices, identities, and infrastructure holistically, enabling a cross-platform and multi-cloud Zero Trust architecture. H&R Block, for example, used our tools to implement Zero Trust principles in just two weeks, enabling thousands of tax professionals to securely work from home. In identity, Azure AD has nearly 400 million monthly active users, and we’ve seen usage of third party apps increase 2X since last year. In security, new Microsoft Defender simplifies threat detection and response, and now includes coverage for Android and iOS, as well as multi-cloud and on-premise protection for SQL workloads. In device and data management, Microsoft Endpoint Manager monitors an organization’s devices in a unified platform, and new tools offer proactive remediation of issues before they disrupt end users. And, in compliance, our new Compliance Manager offers more than 150 out of the box assessments for regulations such as GDPR.
Now to gaming. Gaming is the most expansive category in entertainment industry. 3 billion consumers look to gaming for entertainment, community, and achievement, and our ambition is to empower each of them, wherever they play.
Our Xbox Game Pass service has more than 15 million subscribers. Quality differentiated content is the flywheel behind the service’s growth, and the addition of EA Play next month, along with our pending acquisition of ZeniMax Media, will add more of the world’s most iconic franchises to the more than 100 high-quality games already available and materially increases our ability to increase content.
We’re also transforming how games are distributed and played, and reaching new players on mobile and tablet, by bringing cloud gaming to Game Pass.
Finally, we’re delighted by early reviews and excitement in the Xbox Series S and Xbox Series X, which will be the most affordable and the most powerful consoles available. In closing, in a world of uncertainty and constraints, every person and every organization needs more digital technology to recover and reimagine what comes next. This represents an unprecedented expansion of our addressable market in every layer of the tech stack.
We are focused on innovating and differentiating to meet these needs and growing opportunity. With that, I’ll hand it over to Amy who will cover our financial results in detail and share our outlook. And, I look forward to rejoining for your questions.