And so I think that’s the story of the resilience you’re seeing. And of course, we did have a good E5 quarter, which you’re starting to see and it helps on ARPU.Brett Iversen Joe, next question, please.Operator Our next question comes from the line of Rishi Jaluria with RBC. Please proceedRishi Jaluria Hi, Satya. Hi, Ami. Thanks so much for taking my question. Nice to see continued resilience in the business. I wanted to get back to the topic of AI but I think maybe a little bit longer term. What — how are you thinking about the potential for regulation around AI, some of the concerns around data and customer privacy and governance? And what do you think you can do to maybe quell some of those fears that governments and customers and organizations have around that?
Thanks.Satya Nadella Yeah. Thanks, Rishi for the question. So overall, we’ve taken the approach that we are not waiting for regulation to show up. We are taking an approach where the unintended consequences of any new technology is something that from day 1, we think, about as first class and build into our engineering process all the safeguards. So for example, in 2016 is when we put out the AI principles, we translated the AR principles into a set of internal standards that then are further translated into an implementation process that then we hold ourselves to internal audit essentially.So that’s the framework we have. We have a Chief AI Officer who is sort of responsible for both thinking of what the standards are and then the people who even help us internally audit our following of the process.
And so we feel very, very good in terms of us being able to create trust in the systems we put out there. And so we will obviously engage with any regulation that comes up in any jurisdiction. But quite honestly, we think that the more there is any form of trust as a differentiated position in AI, I think we stand to gain from that.Rishi Jaluria All right. Wonderful. Thank you so much.Brett Iversen Thanks, Rishi. Joe, we have time for one last question.Operator And our last question will come from the line of Michael Turrin with Wells Fargo. Please proceedMichael Turrin Hey. Great. Thanks. Appreciate you squeezing me in. I want to ask a question on the consolidation play that Microsoft is positioning for giving. That’s something we hear clearly top of mind for IT decision-makers currently.
You have clear plays there across security infrastructure apps and other areas. So it would just be great to hear your view on the Microsoft consolidation playbook in the current environment, and if there are certain areas you’re particularly focused on or seeing more traction around. Thank you.Satya Nadella Yeah. I mean, I’ll start and Amy, you can add. I think Amy referenced to even in the context of Microsoft 365 and Office 365. But fundamentally, what we are focused on is making sure that the customers are able to derive the value out of our offerings, right, whether it’s the Microsoft 365 suite value, which is significant, whether it’s E3 or E5. And we want to make sure that our — they’re getting deployed, they’re getting used and that’s obviously going to lead to our share gains in many cases.
Same thing in security. That’s a place where this quarter, you saw some good results from us.And same on up and down the stack across Azure, right? So when you think about AI, the anatomy of an AI application is not just an AI model. In fact, ChatGPT itself is a great example. ChatGPT, for example, uses Cosmos DB as their core database. And so therefore, we want to make sure that our services, as they are competitive, get used together, whether it’s the IaaS layer, the PaaS layer or the SaaS layer.Amy Hood And maybe one thing I would add, Michael, is that I know the question is consolidation, but another aspect of that is that some of the new business process automation work that’s going to get done, whether that’s the Dynamics workload that we’ve talked about, it also will benefit from having the AI services available on Azure, from having the core Azure capabilities as well as actually some front-end stuff that people are buying in Microsoft 365 to close these loops in a new way.And so I think maybe it’s not the traditional definition of consolidation.
But when people look and say, what vendor adds a lot of value and has the tools that we need and, in many instances, already own to be able to do this business process work, I think we have a great value and, frankly, probably leading tools in almost every vertical.Michael Turrin Great. Thank you.Brett Iversen Thank you, Michael. That wraps up the Q&A portion of today’s earnings call. Thank you for joining us today and we look forward to speaking with all of you soon. Thank you, all.Amy Hood Thank you.Satya Nadella Thanks so much.Operator This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
