Keith: Thank you very much guys.
Operator: Thank you. Our next question comes from Rick Sherlund with Nomura. Please proceed.
Rick: Thanks. Could you talk about the implications of Windows 10 for a moment? I’m thinking in terms of the new platform for innovation and maybe you can talk about post sale monetization…what do you think the impact is on the demand in the industry and the opportunity for Microsoft around the new platform?
Satya: Thanks Rick for the question. As I said in my remarks, I’m very optimistic about what Windows 10 means for our customers, partners and Microsoft. The core idea of Windows 10 is to build a device operating system that spans the gamut from no screens to small screens to PCs and even large screens. In fact if you look at our innovation, we are perhaps unique in the large screen innovation that we’re doing with Surface, Hub, HoloLens, as well as some of the two-in-one form factors. Overall I think the most strategic objective for us is to get developer momentum with Windows 10 and that’s where we’re focused on with a lot of different actions. One is the one unified developer platform which is what I think is the most strategic piece of Windows 10 along with the unified store and now couple that with the call we made to provide an upgrade offer.
We’re creating a great opportunity for every developer to write these universal Windows applications that will run on the desktop as well as on our phone and tablets and as well as on Surface Hub and in fact HoloLens runs universal applications. No one else provides that sort of a unified marketplace for developers and especially the changes we’ve made to the desktop user interface means these universal applications are in fact very naturally discoverable right where we have high usage which is the desktop. So that’s the combination of things that we think are going to play out effectively and of course we’re in beta right now or previews right now and getting daily feedback across all the length and breadth of Windows 10 but overall I’m very optimistic with what it means both as a platform as well as a set of end-user features.
Chris: Thanks, we’ll take the next question please.
Operator: Thank you. Our next question comes from the line of Philip Winslow of Credit Suisse. Please proceed.
Phil: Thanks guys. I just have a question on the commercial other line. Obviously that continues to show strong growth, even high up where the cloud seems to be with Azure and Office 365 but I just want to double click on the Azure side. Wondering if you can help us parse through sort of the infrastructure service and the platform server side and the trends there and any sort of joint benefit of being able to operate both those two. Also, as the business does scale how did you think of the growth margin and operating margin characteristics as the revenue continues to grow here?
Satya: Thanks Phil, let me start. Overall what we’re seeing is clearly there is increased usage of infrastructure as a service because a lot of people will move an existing workload into the cloud. The interesting thing that happens once you move your initial workload is that you build around it, especially, for example, if you move a VM with some data into the cloud you may want to use the same data to build a mobile front end and that’s when you’re starting to use some of our platform as a service component like our Azure mobile services, Azure media services. We see the combination– that they’re not all happening coincidentally and there’s time lag in it but that’s one of the reasons why we want to be very aggressive in getting the workloads onto Azure, both storage and compute, and even in the storage and compute we now have premium offerings for higher SLA, for higher performance and higher VM sizes and then on top of that we have these manage services which have a different margin profile so media services, mobile services, web which is another place where ewe have a lot of traction and then that’s all just on Azure.
