Microsoft Corp at Deutsche Bank Technology Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Brad Zelnick - Deutsche Bank AG - Analyst : <_ALACRA_META_ABSTRACT>(inaudible) this would be a perfect time and a perfect place. Well, again, thanks so much for being here. Maybe for those that don't know you and are less familiar with Microsoft Security business, can you just take a minute to explain your role at Microsoft and what your mandate is?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Thank you for that. And I think we do -- there it is.

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Excellent. A picture is worth a 1,000 words, I think they say. Thank you for that overview. Super helpful. And maybe just at a very high level, with nearly 1.5 million Security customers. That's a massive number. Microsoft clearly has a unique perspective into broader trends and what's going on in the world. What are you seeing in the current environment?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : It's a lot to keep up with, I don't know when you sleep. By the way, does everybody in the room hear Vasu, okay? I just want to make sure. Okay, cool. Great. Me doing my own AV check. Like I said, a lot to keep up with, and the interesting part about cyber, it seems it's the only adversarial aspect of IT. It's been a perennial game of cat and mouse. And the industry feels more competitive than ever with multiple platforms, all attempting to consolidate across various segments. Can you just help us understand Microsoft -- how Microsoft differentiates itself amidst what is such a noisy landscape out there?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Yeah, No doubt, puts Microsoft in a very differentiated position. I want to double-click on AI and I feel like -- we've almost made it 10 minutes, and we didn't really spend too much time focusing on, it's (inaudible) REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2025 / 4:30PM, MSFT.OQ - Microsoft Corp at Deutsche Bank Technology Conference

Question: Brad Zelnick - Deutsche Bank AG - Analyst : You've heard o this, right? So yes, it's a multidimensional topic. So three related questions. You've touched on this a bit already, but how have you seen the threat landscape change with AI specifically? I don't know if you can further quantify or give us a sense of what the impact has been. How should we think about Microsoft's response to better leverage AI security Copilot, et cetera, [learn] a little bit more about that and how we're going to protect AI itself?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : We need AI to fight AI. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2025 / 4:30PM, MSFT.OQ - Microsoft Corp at Deutsche Bank Technology Conference

Question: Brad Zelnick - Deutsche Bank AG - Analyst : It makes a lot of sense. Microsoft is obviously continually innovating, once stat that stood out to us, is that 5 of 11 recently released security Copilot agents were developed by partners such as OneTrust and Tanium with two names that I remember. But can you tell us why Microsoft's collaborative approach to the ecosystem is so important?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Makes sense. It's a team sport. As I think about Microsoft from the very top down, trust and security are completely paramount. And Microsoft has done work around the secure future initiative that's very, very impressive. We saw a stat released a few months ago, Microsoft has dedicated the equivalent of 34,000 engineers working full time for 11 months to this project. I mean, that's bigger than other massive scale companies, let alone a single project. Can you tell us a bit more about this and why it's so important?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Awesome. That is great. I wanted to turn for a moment to what's happening in security operations. And what's really caught our eye of late is just the innovation that Microsoft is driving within the SOC with Sentinel and especially in the midst of a number of other cyber platforms that are (inaudible) to displace legacy SIEM solutions out there. Would love to hear how you view the SOC evolving and where the most interesting opportunities are?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : It's a big number. And as we talk about the SOC, Sentinel in our conversation with CISO is a foundational element of their strategy. So it's not surprising. I wanted to turn to a different topic. Palo Alto Networks recently announced the acquisition of CyberArk, which I think really shines the light on the importance of identity security. Not that it always wasn't important. But I mean, they're making a call that now is an inflection point. Microsoft already has a very strong presence with Entra. But as competitors expand from their core competencies, how you think about the architectural center of gravity or capabilities around which identity strategies will coalesce.

Question: Brad Zelnick - Deutsche Bank AG - Analyst : We look forward to it. So Vasu, we've talked about AI security. We've talked about the SOC. Where else does Microsoft see opportunity within the broader security landscape? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 28, 2025 / 4:30PM, MSFT.OQ - Microsoft Corp at Deutsche Bank Technology Conference

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Makes sense. Perhaps I'd be dramatic or oversimplifying to say that without trusted security, there is no Microsoft.

Question: Brad Zelnick - Deutsche Bank AG - Analyst : But with that said, and since we are here at an investor conference, how does this all drive shareholder value perhaps directly and indirectly?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Vasu, this is a really great session to better understand Microsoft security and how important it is for the overall company. And frankly, for the work that you do, that benefits the entire industry and all of us here. Any final thoughts that you want to leave us with?

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Excellent. Well, with that, thank you again for being here.